My house is about the same (€650k) yet I have 240m^2 living space, a garage and about 200m^2 of garden. But yeah, it really depends on where you live. For example in Amsterdam there are houses of 80m^2 that cost >€1 million, and they aren't even that pretty. They call those 'gentlemen houses'.
It's always expensive to live in cities. My town is a pretty expensive town, and it's not even a city.