$1 Aussie house auctions are back, but there’s a catch

Twenty houses in flood-hit Lismore, NSW, are up for auction for as little as $1, but buyers have been warned to read the fine print carefully before bidding.

The NSW Government is offering 20 Lismore houses for sale through its flood recovery auction scheme, however buyers are required to move the houses to flood-proof areas.

There is no reserve price on these houses, meaning bidding can start and end at $1, however successful bidders must have a valid destination at the time of purchase.

A new condition designed to help new homeowners get a fresh start, all homes are required to be vacated by the end of 2026.

Lismore is one of Australia’s most flood-prone urban centers and has a long history of severe flooding, with flood levels reaching a record 14.4 meters in 2022.

Following the 2022 floods, the provincial government began buying flood-affected properties in high-risk areas from homeowners and selling them to buyers who could not relocate to flood-free areas.

So far, 130 flood affected areas have been sold and relocated.

Most of the buyers were locals, with home sale prices ranging from $1 to $200,000 attracting nationwide attention.

Estate agency Wal Murray & Co First National sells properties on behalf of NSW authorities.

The next round of auctions, covering 10 Lismore houses, will be held on 3 March 2026 at the Lismore Workers Sports Club in Goonellabah.

In Lismore, houses at 141 Dawson Street, 157 Dawson Street and 35 Ewing Street are going under the hammer, as well as 25 Junction Street and 15 Second Avenue in East Lismore.

A house at 38 Ostrom Street, South Lismore is to be sold for flood relief. Photo: realestate.com.au

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In South Lismore, houses at 25 Charles Street, 3 Webster Street, 4 Crown Lane, 38 Ostrom Street and 9 Barnes Avenue are also headed for auction.

A further auction of 10 other properties in Murwillumbah, Bray Park and Burringbar is planned for Murwillumbah on March 17.

REA Group Chief Economist Anne Flaherty said buyers should pay attention to the conditions of sale.

“The Resilient Homes Program will enable existing homes in flood-affected areas to relocate, reducing the risk of future disaster payments, insurance claims and rebuilding costs,” said Ms. Flaherty.

“While this presents an attractive opportunity, buyers will need to ensure that they are able to keep up with the requirements associated with it.

“In addition to the transportation facility being ready, buyers will also ensure that the facilities are cleared by the end of 2026 which could be a logistical challenge.”

NSW recovery minister Janelle Saffin said the auctions were saving ‘tin and wood’ in the Northern Rivers.

“These auctions offer local families—especially those starting out—a rare, affordable home ownership option while ensuring that our region’s unique character is preserved for the future,” said Ms. Saffin.

REA Group senior economist Anne Flaherty says prospective buyers should review the sale conditions carefully.

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“It’s about taking our history to a higher level and giving these beautiful homes a second life in a safe place.”

The auctions are part of the NSW Reconstruction Authority’s Resilient Homes Programme.

NSW Reconstruction Authority Northern Rivers executive director Kristie Clarke said this plan is one of the new plans made after the disaster in Australia.

“Through the buy-back program, we are removing homes from floodplains and creating new opportunities for local families by making some of these available for relocation,” Ms Clarke said.