$3 billion in prime properties up for grabs

The largest military property sell-off in Australian history is underway, after the Albanese government agreed to put 64 ‘vacant, decaying’ Defence sites – estimated to be worth as much as $3 billion – on the market.

Some of Australia’s most valuable and historically significant military landholdings are now up for grabs, including Victoria Barracks in Sydney’s exclusive Paddington and its Melbourne counterpart, along with dozens of inner-city training depots and barracks across the country.

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Minister for Defence Richard Marles (L) and Prime Minister Anthony Albanese (R) arriving in the House of Representatives at Parliament House on Tuesday.Picture: Hilary Wardhaugh/Getty Images

Deputy Prime Minister and Minister for Defence Richard Marles has announced a sweeping sell-off of government land.Picture: Hilary Wardhaugh/Getty Images.)

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Deputy Prime Minister Richard Marles confirmed Wednesday that the Government accepted all 20 recommendations from the Defence Estate Audit, paving the way for the wholesale disposal of what the audit found were “vacant, decaying, underutilised” properties costing millions of dollars to maintain.

Mr Marles said the reforms were necessary despite being “significant and challenging” because many Defence sites had been vacant and decaying for years.

“We are clear-eyed and committed to seeing it through, because it is the right thing to do in the national interest,” he said.

The Department of Finance is now seeking expressions of interest from developers and investors for the portfolio, which spans all states and territories and includes 46 owned properties and 12 leased sites.

Three properties have already been sold since the audit was commissioned in 2023: Magnetic Island in Queensland, Haberfield Training Depot in NSW, and Garbutt in Queensland.

Property developers are expected to circle the portfolio with keen interest, particularly for inner-city sites in established suburbs with strong infrastructure connections that could be transformed into residential, commercial or mixed-use developments.

In WA Leeuwin Barracks in East Fremantle is for sale. Picture: Richard Hatherly

NSW

In New South Wales alone, 11 sites are on the chopping block including Randwick Barracks, Lancer Barracks, Spectacle Island, and multiple training depots at Banksmeadow, Bathurst and Penrith. Victoria Barracks Sydney, one of the city’s most historic military sites, will be wholly divested.

Victoria Barracks, which sits across a massive block of land in Sydney’s east, from Oxford St Paddington to Moore Park Drive opposite Allianz Stadium and the SCG, has been a base for national defense as far back as 1847.

November 09, 2025. Her Royal Highness Princess Anne attend the Centenary Parade at Victoria Barracks in Sydney.. Picture: NewsWire / POOL/ Flavio Brancaleone

Very few locals have been inside the Barracks.. Picture: NewsWire / POOL/ Flavio Brancaleone

The 15ha Barracks, which sit behind a three-metre high stone wall, was originally occupied by the British Army until 1870. It was the main training site for military in Australia for over 50 years after that.

Despite its wonderful location, it has been largely closed off from the public and very few Sydneysiders have been inside the Barracks.

Professional sporting teams have occasionally used it as a training base.

Any move to sell it off to developers for housing would likely result in a massive bidding war, given the desirability of Paddington living and its promixity to both the Sydney CBD and beaches.

Mayor Troy Pickard, Chief Minister of Northern Territory Adam Giles, Premier of Queensland Annastacia Palaszczuk, Premier of Western Australia Colin Barnett, Premier of South Australia Jay Weatherill, Australian Prime Minister Tony Abbott, Premier of NSW Mike Baird, Premier of Victoria Daniel Andrews, Premier of Tasmania Will Hodgman and Chief Minister of ACT Andrew Barr during Prime Minister Tony Abbott’s Leaders’ Retreat at Victoria Barracks, Sydney. Pic Brett Costello

Will Genia during Wallabies rugby training at Victoria Barracks, Sydney in 2013.

Randwick Barracks in Kingsford, is the base for support and Australian Army Reserve units. It sits about 8km south of the CBD.

It dates back to 1841.

But more recently, parts of the original base have been carved out for use by Randwick Council as an Environment Park.

Its location near local schools and beaches and hospitals would also make it a desirable buy for developers.

Australian Army soldiers from the Australian Defence Force contingent rehearse at Randwick Barracks, Sydney, on 4 July 2016 in preparation for the French National Day parade in Paris later in July. *** Local Caption *** The Australian Defence Force contingent for the French National Day Parade is preparing for the French National Day Parade at Randwick Barracks on 4 July 2016. Australian Defence Force personnel will join thousands of French military personnel marching down the famous Avenue des Champs-Élysées in Paris on Thursday, 14 July 2016 to mark French National Day celebrations in France. ADF personnel will take the ‘position of honour’ at the head of the parade, which is Europe’s oldest and largest regular military parade, before travelling to the Western Front in northern France for Centenary of Anzac commemorations of the battles of Fromelles and Pozières later in July. French National Day commemorates the storming of the Bastille on 14 July 1789 and the Fête de la Fédération, which celebrates the unity of the French people on 14 July 1790. The 140-person ADF contingent will include 30 Royal Australian Navy sailors, 80 Australian Army soldiers and 30 Royal Australian Air Force airwomen and airmen, and a tri-service flag party carrying the Australian national flag and the ADF Ensign. Picture: Defence

Parts of the original Randwick Barracks have been carved out to form Randwick Environmental Park has finally re-opened.

VIC

Victoria is losing 15 Defence properties including Fort Queenscliff, Carlton Training Depot, St Kilda Training Depot, Sandringham Training Depot and Victoria Barracks Melbourne. Even the golf courses at HMAS Cerberus and Swan Island are being sold off.

QLD

Queensland will see nine sites go under the hammer including Kokoda Barracks, Victoria Barracks Brisbane, and rifle ranges at Atherton, Purga, Wangetti and Mount Isa. St Lucia Training Depot is also on the list.

WA

Western Australia’s property bonanza includes Irwin Barracks in Karrakatta and Leeuwin Barracks in East Fremantle – both prime Perth locations – plus rifle ranges at Coolilup and Karratha-Dampier.

TAS

Tasmania faces the biggest clear-out with 15 sites earmarked for sale, including multiple Naval Reserve training ships, training depots at Burnie, Youngtown and Bridgewater, and military training areas at Buckland and Stony Head.

SA

South Australia will lose four sites including Edinburgh Parks, Hampstead Barracks and Woodside Barracks, while Warradale Barracks faces partial divestment with some portions retained.

NT

The Northern Territory’s three sites on the block are Defence Establishment Berrimah, Kowandi North and Stokes Hill Fuel Installation.

ACT

Even the nation’s capital isn’t immune, with the Fairbairn Golf Course and Pialligo South in the ACT both up for sale.

Three high-value sites will only be partially sold. HMAS Penguin at Balmoral in Sydney will retain its defence diving facility and medical school while selling off other portions. RAAF Williams at Laverton in Victoria and Warradale Barracks in Adelaide will also see partial divestment.

Only one site identified in the audit – Pittwater Annex in NSW – will be retained in full.

The independent audit, led by Jan Mason and Jim Miller, found Defence had been “constrained by the weight of its past” with an estate footprint comprising “numerous legacy sites without a clear ongoing link to current or future capabilities”.

“Urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues,” the audit concluded after visiting 70 Defence locations.

Finance Minister Katy Gallagher said sites would be sold at market value with careful consideration of remediation, heritage and community impacts.

“The Department of Finance has the expertise to manage the large-scale Defence estate divestment program,” she said.

All proceeds from the sales will be retained within the Defence portfolio and reinvested in National Defence Strategy priorities, including upgrading and strengthening northern bases.

The Government has committed to preserving public access to historically significant sites so Australians can continue to celebrate the nation’s military history.

The audit was received at the end of 2023, and the impact of the findings assessed for two years before the process began.