VIC Why is this property so expensive??

OK, solid house, one of those "quality" ones.

Size is so-so. Suburb is so-so and so is location.

I don't get it? It's also significantly more expensive than the average...

12 Jones Court, Bundoora, Vic 3083 - Property Details

There is even an article on it:

Modest Bundoora house attracts 12 bidders, sells for ’unbelievable’ $1.405 million - realestate.com.au

It's close to shops but I don't think its rezoned Commercial?

 

Depends what other similar supply was out there at the time when offer was put in.
If not much supply and demand has been consistently high then definitely people will end up paying more because there aren't many options.
Savvy Investors doing due diligence will review past sales, what's on market etc. etc. but many don't.

 

Yeah I noticed this result in the local paper cos the agent was justifiably using it to promote herself. Maybe a potential change in the planning scheme that will make it easier to use the dwelling as a rooming house? So then charge $250/week per bedroom.....
Or just use it now as a student house. Location is very good for RMIT and LaTrobe.