Six heritage-listed Government-owned houses on Sydney's harbourside will soon be up for grabs as the state pushes on with its public housing sell-off.

The properties at Millers Point are the first of almost 300 state-owned properties in prime real estate locations to be sold to raise hundreds of millions of dollars.

The state Government says the sales will be reinvested in New South Wales' social housing system. The tenants, many of whom have called the historic properties home for decades, will be moved into other accommodation.

The Government says the cost of maintaining the properties, many with uninterrupted harbour views, is four times greater than the average cost for other social housing.


"It simply is not fair to the 58,000 applicants on the social housing waiting list for the Government to spend millions of dollars maintaining properties which are not suitable for social housing," said Family and Community Services Minister Gabrielle Upton.

The Government claims the average annual maintenance bill for a Millers Point home is A$14,500 ($15,450) compared with A$3000 to A$5000 for other social housing properties.

Across the Rocks and Millers Point, 293 properties will be sold off, including 214 that are heritage listed.