The cost of the ACT government of cleaning up after the Mr Fluffy asbestos disaster is set be slashed by $100 million thanks to lower demolition costs and proceeds from remediated block sales.

A total of 1,022 homes were affected by the Mr Fluffy asbestos crisis, and in 2014 the ACT government agreed to pay affected homeowners the market value of their homes.

To date, the government has bought 936 properties, ranging in price from $361,000 to $3 million. 

Once the homes were demolished, remediated blocks of land were offered to the former owners of Mr Fluffy properties, but only 33 of those blocks were taken up. To date, 510 remediated blocks have been released to the public for sale.

For the first 390 blocks sold, prices ranged from $330,000 to nearly $2 million. By comparison, the median house price in Canberra is $721,000, according to CoreLogic.

The strong sales will go towards the government's clean-up efforts and lower the overall cost of the project. Initially forecast to cost more than $400 million, the clean up is now expected to cost in the vicinity of $300 million.

Economies of scale achieved from the high number of demolitions across the city have also lowered the project's overall cost to the government.

A total of 909 properties will be demolished by the end of 2017, and the remaining block sales will continue into 2018. The next sale will be in October.

Read more about Mr Fluffy:

Mr. Fluffy move on

Read more about Canberra real estate:

Sydney, Melbourne, Canberra house prices in record territory

Canberra's coolest new building