$2.7 million for THIS? The derelict shack with water glimpses that proves property prices are through the roof - Sydney
- Crumbling Victorian-style property sells for $2.68 million, $83,000 above the reserve
- Saturday's auction saw 10 registered bidders and a large crowd of over 150 people
- Agents describe the heritage-site as a 'rare unpolished gem' for 'the astute and imaginative buyer'
- Panoramic views of the Harbour Bridge but needs A LOT of polish
By Marielle Simon for Daily Mail Australia and May Slater for Daily Mail Australia
It's the ultimate case of 'worst house, best Street.'
Possibly the saddest-looking Victorian-era home in the most picturesque part of Sydney sold under the hammer for $2.68 million, $83,000 above the reserve.
Peeling paint and overgrown weeds did not deter buyers as Saturday's auction saw 10 registered bidders haggle over the waterside property on 3 James Lane, Balmain East, a suburb in the Inner West of Sydney.
The auction began the bidding at $1.8 million and towards the end saw the price jump in increases of $1000 as two men battled it out in front of a large crowd of at least 150 people.
Spit and Polish: A neglected home on the waterfront in Sydney's Balmain East sold under the hammer for $2.68 million, $83,000 above the reserve
After 15 minutes of bidding the successful buyer ended the auction by shooting up his bidding card in a burst of frustration, The Daily Telegraph reported.
Agent Lynsey Kemp at Belle Property Balmain said the buyers were local people who want to work with the heritage-listed property.
'It was well beyond everyone's expectations,' she said.
'The beneficiaries who originally owned the site were very obviously happy.'
Belle Property said the property was a 'rare unpolished gem' which made for a very competitive auction.
The property's two agents Lynsey Kemp and Georgia Glover describe the site as a 'blank canvas' offering 'unbelievable potential' for the 'astute and imaginative buyer'.
The two-bedroom house sits on 452sq metres of absolute waterfront with panoramic views to the Sydney Harbour Bridge.
The dilapidated James Lane shack backs directly onto Thornton Park on Sydney Harbour
Built in 1857, the property has been held by the same family for about 40 years but has been unoccupied for the last six months.
Although it has been left to crumble, the house's period features are intact, including high ceilings, stained-glass windows, a sandstone front porch and fireplace and tall wooden windows.
Balmain is considered one of the most sought after suburbs in Sydney's Inner West - but a home here won't come cheap. According to RP data, medium house prices in Balmain East have risen 21.8 per cent to $1.98 million in the last year.
A renovator's dream: a sooty sandstone fireplace is one of the remaining Victorian-era features of this Balmain home, left to rot for the last 6 months
The rundown, overgrown James Lane home received 5,000 hits online since it was put on the market