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A dilapidated one-bedroom house in Sydney that has been lived in by squatters has sold for a whopping $1.62million.
The Camperdown property, in the inner west, surprisingly had 28 registered bidders when it went under the hammer on Saturday.
The new owner of the 127sq m home technically paid $12,756 per sqm - even more expensive than a $100million Double Bay mansion that sold in 2018.
The run down home has just one bedroom - with a large hole in the roof - and a small living room, eat-in kitchen and a bathroom/laundry.
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Despite Domain spruiking the 26 Eton Street property, which has been empty for 12 years, as 'the ultimate blank canvas opportunity,' LJ Hooker Newtown real estate agent Bryan Mahlberg admitted it sold for an 'absurd amount' of money.
'The reason it was so expensive is the main buyer pool were all builders that saw it as a knock-down-rebuild opportunity,' he told Daily Mail Australia.
Mr Mahlberg said the buyer hopes the property will be worth in 'the high two millions' after the rebuild.
'The buyers have a lot of faith in current and future values and their forecasting that the confidence will remain strong [in making a good profit],' he said.
'I think the buyers that bought it knew the area and knew what they were doing and believe in the finished product value.'
Mr Mahlberg there were a couple of owner-occupier buyers at the auction, but they 'didn't have the experience to get that high-end home built on a small site'.
While the home is 'unlivable' and will no doubt be demolished, Mr Mahlberg said the owner has forked out the large sum for its location.
The home is nestled in a park-side precinct and is just moments from Camperdown Park and Camperdown Commons, bus services, the rail, King Street and the RPA.
Sydney's property market is so overheated prospective buyers are even paying $2,000 fees just to view blocks of land that are 84km from the city centre.
Developers Lendlease and Mirvac are both selling house and land packages, from $800,000, on the city's south-western outskirts.
And competition is fierce. © Provided by Daily Mail(
While expensive, basic houses in new, master-planned suburbs are marginally more affordable than Sydney's record $1.147million median house price, which increased by 11.2 per cent during the first four months of 2021, CoreLogic data showed.
But many of these outer Sydney house and land packages are pricier than Melbourne's mid-point house price of $869,676.
Lendlease is selling new houses at Wilton, 84km south-west of the city, for between $790,000 and $1.2million, in an area that until 2013 was being seriously considered as the site of Sydney's second airport.
Like many master-planned districts, the new suburb of Bingara Gorge comes with a fake lake.
Lendlease's Kings Central development at Werrington near Penrith, 50km west of Sydney, received 2,000 enquiries before the first weekend opening in March, with house and land packages available for $720,000 to $950,000. © Provided by Daily Mail(
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Interest in both projects is so strong prospective buyers have to pay a $2,000 fee just to jump the queue to see available blocks, which is fully refunded if they don't end up signing a purchasing contract.
Ben Christie, Lendlease's head of residential property, said buyers were particularly interested in brand-new homes that didn't need to be renovated or fixed.
'We've been experiencing strong demand for our stock,' he told Daily Mail Australia.
'These numbers indicate confidence in both the Australian housing market, and our turnkey product, which, being a fully completed home, is remarkably appealing for many customers.'
Maggie Xu, from the Byton Realty Group, said the demand for house and land packages at Menangle Park, near Campbelltown, was outstripping the availability of blocks.
'I don't have any available stocks right now,' she told Daily Mail Australia.
'We're all waiting for the land developer to release the land.'
Prospective buyers at Mirvac's The Village development at Menangle have to pay a refundable $1,000 fee just to inspect a plot of land. Read more