Derelict Queensland home is selling for a staggering price, evidence that Australia’s housing market has gone mad

A seriously dilapidated house in Queensland has sold for almost $800,000, in an ominous sign for buyers in an increasingly tight property market.

The property, located in Mitchelton, about 10km northwest of Brisbane’s CBD, was purchased earlier this month and features ‘two spacious bedrooms’, a third bedroom/sleeping area, a large bathroom and an open-plan living and dining area.

The listing on Realestate.com describes the house as 7,000 square feet of “prime land” that you can “empty, renovate or simply detonate.”

“The house has seen better days, but it’s all about the land here,” the listing said.

‘The ultimate location offers enormous opportunities for growth.’

The house was sold in a seriously unkempt condition, with clothing and other items covering the surfaces

Photos accompanying the listing show the exterior of the home in extremely poor condition, with faded paint and chunks of wood around the perimeter.

The interior is no better, with images of piles of junk and clothing covering surfaces in the living room and bedrooms.

The bathroom is dilapidated and the sink is falling off the wall.

There are some unusual items on display, including a giant watch clock, a retro television and even a jar of Vegemite.

You see parts of the roof peeling off and the stairs at the rear of the house have been replaced by a crooked ladder.

The property was sold ‘as is’, meaning the buyer managed to get the entire contents of the property on top of the house and land.

Even the real estate agents had little hope for the house’s potential, stating that “it might be easier to start over.”

The house sold for less than the median house price for Mitchelton, which is currently $926,500, but more than the Brisbane median of $773,000 (pictured)

The home sold for less than the median home price for Mitchelton, which is currently $926,500.

According to data from PropTrack, the median home value in Brisbane last month was $773,000, an increase of more than 7 per cent over 12 months.

For the rest of Queensland, the average house price is $622,000, while the national median is $759,000.

This month the Reserve Bank raised the cash rate for the thirteenth time in eighteen months to a twelve-year high of 4.35 percent, leaving many mortgage holders struggling to keep up with their repayments.

The Melbourne Cup Day rate hike was aimed at halting rising inflation, with the consumer price index (CPI) rising 5.4 percent in the year to September.

Even before the latest rate hike, it was revealed that almost half of Australian mortgage holders are in financial difficulty and need to pay at least 30 percent of their income to service their loans.

According to the Australian National University’s Australian Tax and Social Security Model, households that spend at least 30 percent of their disposable income on mortgage repayments will account for 48.5 percent of total borrowers by the end of the year.