Twenty houses in the flood-affected Lismore region of NSW are heading to auction for as little as $1, but buyers have been warned to read the fine print carefully before throwing in a bid.
The NSW government is offering 20 Lismore houses for sale through its flood buyback auction program, however the buyers are required to relocate the houses to flood-free sites.
There is no reserve price on these houses, meaning bidding can start and end at $1, however successful bidders must have a destination site ready at the time of purchase.
It’s a new condition designed to help new homeowners hit the ground running, with all houses required to be moved by the end of 2026.
Lismore is one of the most flood-prone urban centres in Australia and has a long history of severe flooding, with flood levels reaching a record 14.4 metres in 2022.
Following the 2022 floods, the state government started buying flood-affected properties in high-risk areas from homeowners and selling them to buyers who could relocate them to flood-free sites.
So far 130 flood-affected properties have been sold and relocated.
Properties at risk of flood could have a persistent discount to those unaffected. Picture: Getty
Most buyers have been locals, with house sale prices ranging from $1 to $200,000 attracting attention nationwide.
Real estate agency Wal Murray & Co First National is selling the properties on behalf of NSW authorities.
The next round of auctions, comprising 10 Lismore houses, will be held on 3 March 2026 at the Lismore Workers Sports Club in Goonellabah.
In Lismore, the 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.
The house at 38 Ostrom Street, South Lismore will be auctioned through the flood buyback program. Picture: realestate.com.au
In South Lismore, the houses at 25 Charles Street, 3 Webster Street, 4 Crown Lane, 38 Ostrom Street and 9 Barnes Avenue are also heading to auction.
Another auction event for a further 10 properties in Murwillumbah, Bray Park and Burringbar has been scheduled for Murwillumbah on March 17.
REA Group senior economist Anne Flaherty said buyers should pay attention to the sale conditions.
“The Resilient Homes Program will enable existing homes in flood affected zones to be relocated, reducing the risk of future disaster payments, insurance claims, and rebuilding costs,” Ms Flaherty said.
“While this presents an attractive opportunity, buyers will need to ensure they are able to comply with the accompanying requirements.
“In addition to having a relocation site ready, buyers will also need to ensure the properties are relocated by the end of 2026 which could represent a logistical challenge.”
NSW recovery minister Janelle Saffin said the auctions were saving the 'tin and timber' soul of the Northern Rivers.
“These auctions give local families—especially those starting out—a rare, affordable shot at home ownership while ensuring our region’s unique character is preserved for the future,” Ms Saffin said.
REA Group senior economist Anne Flaherty says prospective buyers should review the sale conditions carefully.
“It’s about moving our history to higher ground and giving these beautiful homes a second life in a safer place.”
The auctions are an initiative of the NSW Reconstruction Authority’s Resilient Homes Program.
NSW Reconstruction Authority executive director Northern Rivers adaptation division Kristie Clarke said the program was one of the most innovative initiatives undertaken after a disaster in Australia.
“Through the buyback process, we’re removing homes from the floodplain and creating new opportunities for local families by making some of these available for relocation,” Ms Clarke said.
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