A few weeks ago, real estate identity John McGrath sold an unremarkable house in Eastwood in Sydney's northwest for an eye-watering 77 per cent premium to its $1.35 million reserve.
The 16 registered bidders were all Chinese, based locally and offshore, with the lucky one...forking out $2.385 million.
I still can't get over this kind of thing. Housing in Australia used to be high quality and affordable. Now an unremarkable home gets sold for $2.4 million.
According to the real estate agents, this is not evidence of a property bubble. John McGrath claims that "This is just a normal period of post-financial crisis catch-up."
The cost of housing is increasing at three times the rate of wages growth. According to the Australian journalist this is something to celebrate:
Tony Abbott and Joe Hockey welcomed the big gains last Friday, and why not?
Across Australia, there are millions of homeowners who are suddenly feeling enriched, with their number vastly overwhelming the people who are penalised by the latest bout of runaway prices and eroding affordability.
I don't think it's that straightforward. If you're a homeowner you might see the value of your house increasing, but if you sell you're then faced with the problem of having to pay a large amount of stamp duty and then a high price for your new house. How then are you better off?
It's really only those people with an investment property who are likely to make money out of the current market.
And the problem is that young local families are either being priced out of the market altogether or forced into high mortgages that will keep both spouses permanently in full-time work until they retire, without much of an opportunity to save or invest.
Update: There are pictures of the house here.