The Balmain East two-bedroom property was sold under the hammer for $2.68 million, a massive $830,000 over the reserve price of $1.85 million.
Location, location was the trump card in the sale, with the house - if you could call it that - closely resembling a den for squatters.
The home, built in 1857, has been unoccupied for years, with the wood supports showing severe rot and the roof choked with weeds.
The home’s one saving grace is its location on a 452 square-metre block, steps away from Balmain East ferry wharf and boasting harbour views.
Speaking exclusively to Real Estate Business, Belle Property Balmain real estate agent Georgia Glover said she believes there was close to 200 people attending the much-publicised auction.
“Obviously it had a lot of interest and good competition on the day with eleven registrations, and really it came down to two people who fell in love with the location,” she said.
Ms Glover said the property was sold to a local family.
“The location by the water is fantastic, it is a rare opportunity for someone to potentially create a family home and the property attracted strong interest from homeowners – obviously it is a blank canvas from which to build their dream home,” she said.