Overpriced in my mind means priced so high people can't realistically pay without being extremely wealthy or committing mortgage fraud, or priced so high that the practical value that could be derived from it as an intrinsically useful asset is significantly smaller than what you have to pay.

Does $600k for a studio, or like $3500/month seem appropriately priced?

Sure some people are willing to spend $9k on a pair of shoes, but they're still overpriced.