Tiny cottage is one of Sydney's most expensive plots of real estate

A tiny, historic Sydney cottage with no internal walls has proven to be one of the most expensive and exclusive plots of real estate in the city.

The heritage one-bedroom, one-bathroom home at 227 Australia Street in Newtown, sold in June for $1,545,000, and makes remarkable use of its very compact floorplan.

At 98 square metres, the sum for the award-winning cottage is about $15,700 per square.

The median price per square metre in Sydney is $2,466 according to Domain data released in February this year.

Principal and sales agent Jonathan Viewey, who holds the listing alongside Nicholas Viewey of Viewey Real Estate, revealed the cottage sold to a single woman from the Southern Highlands of New South Wales who will move into the home with her dog.

"The cottage would only suit a single or couple as there's no privacy," Viewey tells 9news.com.au.

"It has a very open-plan layout with no internal walls, it's basically just the structural walls."

With its original sandstone walls upheld, the only new additions to the 1858-built cottage are cosmetic fixtures including pendant lights and cabinetry.

READ MORE: Sydney terrace makes incredible use of its tiny floorplan with a 'floating staircase' above the kitchen bench

The Australia Street home is "recognised for its conservation of the cultural heritage" of the area and won the 2008 Marrickville Medal for Conservation.

It has recently been available as short-stay accommodation.

The open layout gives the illusion of space.

A living zone is adjacent to a room that could be made into a second bedroom.

The kitchen and bathroom are opposite one another, and there's a separate laundry.

Known for its eclectic bars, eateries and boutiques, Newtown is a desirable location, about 4km south-west of Sydney's CBD.

Domain's latest data reveals the median price for a home in the area is $1,647,500.

READ MORE: Sydney's $2.2 million real-life doll's house charms a buyer at auction

Despite its square-metre price, the Australia Street cottage is nowhere near the dearest piece of real estate in the city.

That crown belongs to 21 Little Riley Street in Surry Hills where, despite its nanoscopic footprint of 25 square metres, it sold for the equivalent of $60,000 per square metre - an unheard of amount.

The buyer paid $1.5 million at auction in February and has since leased it out.

Marketed through BresicWhitney Inner East, the one-bedroom, one-bathroom inner-city terrace was listed for $995-per-week.

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