House bought for £5,000 now worth £1.7m

A street of unassuming terraces in St Andrews will this week cement their reputation as a millionaire's row when a double upper flat goes on the market for 1.75 million.

Number 14A The Links was bought in 1957 for 5,250 (about 99,000 in today's money) by the grandparents of current owner Dotty Kennedy.

But its panoramic views across the famous Old Course and its hallowed 18th green - where Open Championships are won and lost - have brought the 2011 valuation of the three-bedroom property with no garden that will only appeal to the very wealthy.

When the Wallace family retired to the property in 1957, golf was not the global phenomenon it is now. But in the intervening half century, not only has golf taken off but the price of properties overlooking the Old Course - a unique location in the world game - has exploded.

The last home to be sold on The Links, which changed hands for almost 4m last year, became the priciest property per square foot in Scotland at 1,350, putting it among the most expensive property markets in the world, such as London and Monaco.

Just a few yards away, luxury apartments in the Hamilton Grand, a former St Andrews University halls of residence being redeveloped by American billionaire Herb Kohler, start from 1.35m. Some of the properties do not even have a view of the Old Course but are still highly prized for their location at the centre of the traditional Home of Golf.

Number 14A has grandstand views out over the course towards the Royal and Ancient Golf Club clubhouse, one of the Fife town's most imposing buildings, and the historic West Sands beyond. Dotty's parents Binks Forster and his wife Muriel also retired there in 1977, continuing the family link, but the property has been put on the market following their deaths earlier this year.

The Forster family have spent decades watching golfing greats such as Jack Nicklaus, the late Seve Ballesteros and former world No 1 Tiger Woods tread the ground beneath their window. They have spectacular views over some of golf's most iconic landmarks, such as the Swilcan Bridge and the Valley of Sin: the scene of many a prospective champion's undoing.

They watched in 1970 when Nicklaus famously threw his putter in the air after securing victory. He had won a play-off after Doug Sanders threw away what looked like certain victory by missing a 3ft putt. Then, more than a decade later, the charismatic Spaniard Ballesteros punched the air in triumph after winning in 1984, while the last Briton to win an Open on the Old Course was Nick Faldo in 1990. Woods won the Open outside their window in 2000 with a record 19 under par score.The family are also accustomed to seeing celebrities from Sean Connery and Mel Gibson to Michael Douglas and Hugh Grant test their skills on the ancient fairway during annual Pro-Am tournaments.

"We've watched every Open held here since 1958, but even when there is no championship this apartment offers staggering views," said Kennedy. "When Mum and Dad lived there it was the only full-time residence with access from the Links, rather than from the back, which is pretty special.

"Dad knew every nuance of the 18th green. He was known as Binks on the Links and he could see where people were going to go wrong before they knew it themselves. He would always look out for us coming back after a round as well. Even now, I still look up and expect to see him."

Andrew Smith, a keen golfer and the partner handling the sale for Strutt & Parker, said: "Having sold property throughout Scotland for more than 20 years, 14 The Links undoubtedly offers the finest view of any home I have seen. It is a truly remarkable, magical and special spot, redolent with history and tradition."

Most of the homes on The Links were constructed in the mid-19th century and have been extended to four floors to take advantage of the location. There are some commercial properties too, including the Rusacks Hotel at one end and the recently refurbished Old Tom Morris golf shop at the other.

Most of the rest are holiday homes or the bases of golfing societies.