We returned from this apartment about a week ago and wanted to take our time with the review as we had something of a mixed experience. A lot of what we found is similar to what was written in other reviews - low ceilings, a very strange, small bathroom and a smell of damp. There was also a hole in the floor by the entrance and lots of rotting wood in the kitchen area. These were certainly the negatives which we would concur with, along with an issue we had on a couple of occasions with bugs I think attracted by the damp.
On the other hand the bedroom and the view were fantastic and we found we spent most of the time in the apartment there because of the natural light. The bed was also really comfy, and the air con a real plus! The location was really close to Santa Apolonia and some fab restaurants/bars (I'd highly recommend No.63, Sal Grosso, Ginja de Alfama), but next time we'll probably stay in a different area (this is our second time in Lisbon, and Alfama). For the price I think you can find better especially if you look outside of Alfama but this was by no means a terrible apartment especially for shorter stays (we were there a week which I would say is a bit too long), there are just factors to be aware of.