Auction sale way above listed range

[Tsea]

So I have been looking for 2 bedroom apartments in the st kilda east/prahran/elsternwick/elwood are and came across this result today of an apartment I had been looking at.
The guide price was $475-525 and it sold at auction this weekend for $655K.
I don't know Elsternwick as well as other suburbs in the area but that seems awfully high for a pretty standard 2 bedroom apartment. Does the fact it is on a good street facing a park (personally I wouldn't want to) mean it can generate a price well ahead of the average price for a 2 bedder in elsternwick?
Here's the link
http://www.domain.com.au/property/for-sale/apartment-unit-flat/vic/elsternwick/?adid=2011473665

 

[tone1]

Price guides are awfully misleading at times. Best thing to do is look for a comparable sale (although it can be hard to find as there are so many factors influencing price) and that will give you the true value. It could be that the sale price at that auction was higher than the market value if a few bidders got carried away.

Good streets are valuable (quiet is valued in the inner city), same with parks as those apartments will appear to families who want somewhere to take their kids.

 

[S.T]

That's quite a large under quote! I think agents are supposed to be within 10%, they would argue it's hard with auctions if you have a few emotional or motivated buyers.

Very nice location with the park right there.

 

[Jaggannath]

I usually add 10% to the upper price guide value, but yes that is unusual