There was strong competition for the latest round of government-owned Millers Point homes that were put to auction last week.

A four-storey Victorian terrace at 1 Lower Fort Street - which has gun-barrel views of Sydney Harbour and the Opera House - sold for $6.7 million, or more than $2 million more than expected.

With their proximity to the CBD, and historic value, the properties attracted keen interest. 

Brett Newman, CEO of Government Property NSW, said "Market interest has remained robust for these historic homes given their unique characteristics and proximity to Sydney's CBD."

The flood of new owners to Millers Point, and the expected improvements to so many homes, will further transform the harbour-side suburb, which is already undergoing a revival after the opening of Barangaroo Reserve.

Eight properties went to auction on 3 December.

- Three 1870-built terraces on Merriman Street sold for between $2.7 million and $2.9 million.

- A three-bedroom terrace at 36 Kent Street sold for $1.9 million.

- A five-bedroom sandstone terrace at 55 Kent Street sold for $2.95 million.

- A three-bedroom end terrace at 59 Kent Street sold for $2.1 million.

- And a three-bedroom terrace at 71 Windmill Street sold for $1.9 million.

The state government has now sold 47 properties, raising $116 million. The funds are being put towards building much-needed social housing around Sydney.

McGrath is marketing the properties, through agents Lorraine Crawford and Peter Starr.