Why homes in this Aussie town are selling for just $100

Homes are selling for as little as $100 in the beautiful New South Wales town of Murwillumbah – but there’s a catch.

In the second auction of its kind this year, about 50 people watched as 19 bidders signed up to bid for 10 flood-damaged lots, all of which sold for a total of $185,000.

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Launched after the devastating floods in the Northern Rivers region in 2022, the auctions enable houses acquired under the NSW government’s buy-back scheme to be sold and relocated to flood-free land.

So far, 150 flood-affected properties across Lismore, Murwillumbah and surrounding areas have been offered for sale by the state government from 2024 with no price set, meaning bidding can legally start and end at just $1.

At a recent auction in Murwillumbah, bidders included a former tenant and a tourism operator, who were among 10 groups snapping up houses between $100 and $100,000.

The three most damaged homes, on River St, South Murwillumbah, and Tweed Valley Way in Burringar sold for just $100 each.

This home at 6060 Tweed Valley Way, Burringar, recently sold for $100.

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The spokesperson for First National Real Estate Murwillumbah said that one of the successful bidders likes the idea of ​​rescuing the house they rented more than ten years ago, while the other was thinking of using the house for tourist accommodation.

But although housing is cheap, it is not without conditions. All auctioneers must demonstrate that they have acquired the land to be resettled as a flood relief home before the end of 2026.

NSW regeneration minister Janelle Saffin said the flood buyout auction had become one of the most affordable housing opportunities in the country, providing a practical way for buyers to acquire housing while supporting long-term flood resilience.

This house at 82 River St, South Murwillumbah, recently sold for $100.

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“Approximately 1,000 homes will have been moved from an area at high risk of flooding, and the auctions for the purchase of goods in Murwillumbah play a big role in meeting that goal,” said Ms Saffin.

“It’s great to see young families and first-time home buyers walking away with the keys to a secure future, three of these homes selling for $100 each.”

All proceeds from the sale of the homes (after expenses) are reinvested in the Strong Housing Program to support the many residents affected by the floods.

Economist at Ray White, Nerida Conisbee, said the flooding events in the region did not have a significant impact on house prices, rising insurance costs, insurance withdrawals and government-led housing purchase programs delayed demand and increased uncertainty.

This house at 78 River St, South Murwillumbah, recently sold for $100.

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“The best 24 months (for Lismore) show a clear disruption of price growth following major flooding events, with recovery slower and weaker than markets that have experienced isolated disasters,” Ms Conisbee said.

“In this case, the frequency and certainty of risk has led to a fundamental reevaluation by consumers.”

But some places have been able to withstand floods, like Brisbane after the 2011 disaster.

Although affected suburbs initially recorded price declines, in 2017 average prices were above pre-flood levels, Ms Conisbee said.

“In these cases, disasters have acted as temporary shocks rather than catalysts for lasting changes in consumer behavior,” he said.

He said the speed and strength of the market’s recovery often depends on insurance coverage, demographics, government response, quality of reconstruction, and local demand.