Photos of the property show a cream, single-storey facade on a small block of land.

Inside, a speck of countertop acts as a kitchen. An outdoor patio holds a single chair and, perhaps most bizarrely, the living space is only usable when the bed is folded into the wall.

But the curious Murphy bed design and minuscule floor plan hasn’t deterred one buyer from offering $1.2 million for the tiny home in Sydney’s east.

The leafy suburb of Paddington was named the most expensive property market in Australia by square metre and block size earlier this year.

This 56-square-metre studio, for instance, comes in at a staggering $21,000 for every square metre of space.

Its price tag is almost double the median cost of a unit in an Australian capital city — $647,148, according to CoreLogic — and even soars above the median house price in Sydney, which is $1,121,196.

It’s also a significant return compared to when the property last sold, for $550,000 in 2013.

According to real estate agent Ben Collier, that eye-watering $1.2 million offer was made before the property goes to auction next Saturday.

“It’s difficult to price as it’s a freestanding studio and the only points of comparison are a one-bed home selling in the [$1 million-$1.5 million range],” Mr Collier told Yahoo.

A description of the studio describes it as an “exceptional pied-à-terre proposition” and “the perfect lock up and leave base in one of Sydney’s most sought-after addresses”.

The single room could be re-engineered for slightly more privacy by lifting the sleeping area onto a loft, Mr Collier suggested.

“To make it a one-bedroom, the path of least resistance would be to create a mezzanine level across the kitchen. The ceiling is very high and a mezzanine bedroom would retain the living space,” he said.