A public housing terrace in Sydney sold for a staggering $2.2 million above reserve

1 Lower Fort St sold for $6.67 million. Source: McGrath

1 Lower Fort Street, Millers Point, which sits under the Sydney Harbour Bridge, is described in classic real estate-speak as “bearing many of the hallmarks of its classical Victorian heritage” by agents McGrath, who have sold the 1879 five bedroom terrace on behalf of the NSW government.

The view from 1 Lower Fort St. Source: McGrath

The Baird government is selling off nearly 300 public housing properties, including 121 terrace houses, around the historic Rocks and Millers Point areas, and shifting the 400 residents elsewhere, arguing it costs too much money to keep them in the increasingly gentrified inner city setting.

Last Thursday’s auction of 1 Lower Fort Street seemed to prove the point, with the four-storey terrace at the end of the heritage significant ‘Milton Terrace’ row selling for an astonishing $6.67 million, more than $2.2 million above the $4.5 million estimate.

The property will require considerable restoration work after a tough life, but it offers views of the Opera House from under the Harbour Bridge, as well as across the water to Luna Park and west looking up the harbour.

Inside 1 Upper Fort St reveals there’s work to be done. Source: McGrath.

The selling price is more than 50% higher than a similar property, No. 11, which sold in October 2014 for $3.95 million, and double the price paid for 55 Kent Street, another government-owned five bedroom terrace, which sold $2,950,000 at the same auction last Thursday.

It smashes the record paid for a 5-bedroom, heritage-listed 1830s sandstone house at 50 Argyle Place, which fetched $4.23 million in May.

The median price for property in Millers Point is now $2.25 million. Several 3-bedroom 1870s terraces along Merriman Street, Millers Point, overlooking the new Barangaroo reserve, sold in the last two months for between $2.46 million and $3.3 million.

32 Merriman St, Millers Point sold for $2.65 million.

Today, social housing minister Brad Hazzard announced the goverment had sold a 7,125 square metre site in Sydney’s inner west for $67 million for a developer in a trade off to build social housing.

The land in Cowper Street, Glebe, was sold to Roxy Gordon Pty Ltd for 247 private homes, but the deal is part of a mixed housing development which will also produce 159 social housing dwellings, and 91 affordable dwellings

The minister said the project brings together new social housing for people on low incomes, with many units designed for seniors and people with disabilities; affordable housing for key workers who will pay discounted rent, and private housing. The development is expected to be completed by the end of 2018.

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