A dilapidated home , with no functioning bathroom or kitchen has stunned Sydney 's property market by selling for $ 1.5 million . However , just one day after the unprecedented sale , the Reserve Bank of Australia cautioned that it remains concerned that house prices may fall . The bank 's Financial Stability Review , released on Wednesday , pointed out that if the rising value of properties in Sydney - fuelled by demand and investor speculation - continues , then a drop in prices could follow . Scroll down for video . A dilapidated home in Sydney 's inner-west sold for $ 1.5 million on Wednesday . This is despite the property , built in the 1980s , having no functioning kitchen ( pictured ) or bathroom ( below ) The real estate agent recommended it to buyers with a 'discerning eye ' or to a 'determined restorer/renovator not deterred by the effects of sad neglect ' 'Ongoing strong speculative demand would tend to amplify the run-up in housing prices and increase the risk that prices in at least some regions might fall significantly later on , ' the review stated . It added : 'Heightened investor demand can amplify the housing price cycle…and so increases the risk that prices later fall significantly ; investors are more likely to engage in speculative behaviour than are owner-occupiers . ' Until then , house prices continue to skyrocket in Sydney , with the million dollar sale of 23 Fairmount Street at Dulwich Hill in Sydney 's inner west , shocking prospective home buyers . The three-bedroom home named 'Carisbrook ' , which was built in 1890 and has remained unoccupied for the last 20 years , had no trouble selling despite having a non-functioning kitchen and outside toilet , Property Observer reports . Just one day after the unprecedented sale , the Reserve Bank of Australia cautioned that it remains concerned that house prices may fall . The bank 's Financial Stability Review said that if the rising value of properties in Sydney - fuelled by demand and investor speculation - continues , then a drop in prices could follow . It features three original fireplaces and chimneys on a 420 square metre block , along with cracked and stained walls , chipped paint , damaged floors and a grotesque and run-down exterior . Nonetheless , the real estate agent recommended it to buyers with a 'discerning eye ' or to a 'determined restorer/renovator not deterred by the effects of sad neglect ' . It comes just a few days after a 1940s fibro cottage with only an outdoor toilet at Sydney 's northern beaches sold for $ 1,105,000 . The four-bedroom home received a generous amount despite also including an original kitchen and backyard laundry . However the price of 23 Fairmount Street at Dulwich Hill remained high when it went to auction on Tuesday . This is despite it featuring cracked and stained walls , chipped paint , damaged floors and a grotesque and run-down exterior . Earlier in the week , a 1940s fibro cottage with only an outdoor toilet sold for $ 1,105,000 . Future buyers may be crossing their fingers for the Reserve Bank 's predicted drop to prove true , but the report warns that it could lead to negative effects for home-owners . 'The further housing prices fall in that scenario , the greater the chance that lenders would incur losses on their housing loans , ' the Financial Stability Review read . It later added : 'Importantly , a future fall in housing prices would reduce wealth and dampen spending for the broader household sector , particularly for those households with significant housing debt , not just for the investors who contributed to the upswing . ' The four-bedroom home was sold for a generous amount despite also including an original kitchen ( pictured ) and backyard laundry . The four bedroom home is located in the popualr location of Sydney 's northern beaches . Future buyers may be crossing their fingers for the Reserve Bank 's predicted drop to prove true , but the report warns that it could lead to negative effects for home-owners .
Dilapidated 1890s Sydney home has no functioning bathroom or kitchen . Sold for $ 1.5 million on Tuesday despite cracked walls and damaged floors . Score: 6