A $2.7 million fixer-upper?

Just found out a house across the street from where I rent sold for $2.7 million. Look, it's a decent area in terms of being close to a school, a few shops, plenty of bus stops though no train station less than 30 mins walk away. I went and viewed the place out of curiosity -- it was obviously full of mould, I had a headache the rest of the day. The floor will need replacing, everything else is in a varying state of decay. It needs a massive reno job, but IF that's done it'll be a beautiful house.

But I suspect it will be knocked down (truly what a waste) and replaced by at least a duplex to be rented out exorbinantly. 2.7 million!!! I'm really not after comments trying to explain why the house is worth that much. A house in suburbia that probably needs a million dollars worth of repairs should never be worth that much. But somehow there are people out there who can afford it and then some, while I rent across the street struggling to save anything... I don't know... is it a positive that maybe it'll be converted into more housing for more people? I'll wait and see how much the rent is put up for because that's a hefty mortgage.