Whoa dudes. WHOA.

Last Saturday, we went to see 110 Camden St, Enmore. A deceased estate nestled in a sweet little pocket of Enmore where it meets Newtown and St Peters.  Situated on a corner block, this little ramshackled house is in sore need of major renovations. Click on the link to see more:

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2008038905

A renovator's delight, is it not? So when the agent told us we were looking at about $600k, we promptly walked away. 

It just sold for a whopping $674000.

My mind is struggling to understand the logic.  In a property market where land size seems to play a bigger role in the valuation of a property, I can't understand how a 10x18m block can attract such a huge price.  The house itself is certainly no big selling point.  So location it is. I've seen much better houses in the same area go for less. Ye gods!

Is Camden St some sort of Erko Golden Triangle-esque utopia? Please explain.