A block of eight apartments were sold at auction on Wednesday night for $7.2 million by McGrath agent, Richard Shalhoub.

The apartments are over three levels, and have views of the city and Barangaroo.

After strong bidding by two parties, a private investor was eventually the buyer. He intends to renovate the apartments, which are protected by a Conservation Management Plan. Instructions on the heritage requirements were included in the contract.

"This was a rare opportunity to purchase a block of 8x1 bedroom apartments in the Millers Point precinct, with the opportunity to upgrade the apartments for a healthy rental yield," said Shalhoub.

The sale is part of the NSW government's disposal of Millers Point social housing. Funds raised will be used to build 1,500 new social housing dwellings.