Balmung housing has been going for 10-30 times what the 'vanilla' housing price is for years. They're not the only server.. but among the worst. Honestly that's not a bad price, and most will ask for more at a start, but settle for a little lower (by a little, I mean at lowest about 23 million. For a small whose plot cost them 3.)

The problem there is supply and demand. Square hasn't supplied enough housing to allow access to all content for even a moderately acceptable amount of the players on hand. So this happens.