Thank you, now I can finally work out what the housing market is, and there is a frame of reference.
I would still think that reasonable sized housing could be found at that price in most places, but as you eluded to before, the housing market where you live is shit so things might be overvalued in a housing bubble, or kept artificially high due to policy. Still seems way too high for a very small apartment, but as you said it would be directly center of the city.
I don't think it would be a good long term investment though. You might be better off renting and putting the difference in blue chip stock and bonds.