Would you pay half a million for this decrepit Sydney studio?

If you thought you could bag a property bargain in Sydney, think again.

An unliveable Sydney studio in the inner-city area of Darlinghurst has just sold for $550k – $125,000 above the reserve of $425,000.

An incredible 70 people registered for bidding cards for the tiny 32sqm space on the fifth floor of an Art Deco block in Darlinghurst, according to realestate.com.au. 

Perhaps the enticing $375,000 price guide lulled prospective buyers into a false sense of value for money.

The Art Deco block Ballina at 72/3-5 Darley St, Darlinghurst. Image: realestate.com.au

Forget that the studio has water damage, cracks down the walls and needs a complete gut job. It's also of little significance that the previous owner disappeared overseas 10 years ago, mid-way through renovating the property; there are city views, people. 

This is Sydney – there were lines down the street.

View from the studio. Image: realestate.com.au

Realestate.com.au reports that when auctioneer James Keenan called for bids, one speculator offered $100,000, but before he could even reject it, someone else offered $440,000. They were clearly not there to mess about.

In the end, it was a bidding war between seven bidders which took the price up to an eye-watering $550,000.

The lucky winner is an architect in his 30s, who will undoubtedly complete a renovation fit for the trendy location. 

It's reported that the original owner bought the apartment in 1989 for $75,000. The sale proceeds went into the hands of the government, thanks to more than $200,000 in unpaid rates and levies.