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 . Meanwhile a fibro cottage with no indoor toilet sold for $1,105,000 . Reserve Bank of Australia's latest review warns about the possibilty of a drop in house-prices, brought on by high investor demand and  speculation .