The flats on Northbourne Avenue, Dickson.

Flats on Northbourne Avenue, Dickson. Photo: Graham Tidy

Strong commercial demand is expected for ACT government-owned properties along Northbourne Avenue that will be sold for redevelopment.

The government is drawing up a list of properties in Civic and on Northbourne Avenue that could be sold, including public housing complexes, the Macarthur House office building, the Dickson motor vehicle registry and the tourism information centre.

The federal government has offered financial rewards to state and territory governments which sell eligible assets and spend the proceeds on approved infrastructure projects.

The ACT had already been interested in selling ageing properties on Northbourne Avenue and redeveloping public housing precincts.

Colliers International ACT chief executive Paul Powderly said some government-owned sites on Northbourne Avenue could sell for about $10 million each.

Mr Powderly said there was expected to be ongoing demand for inner-city housing in the future. ''Obviously you'd release sites or sell sites based on market demand. But as a general rule, 120 to 150 unit sites is about what you'd consider the market digests,'' Mr Powderly said,

''The values are sort of $50,000 per unit as a general rule.''

The proposed redevelopment of public housing flats on Cooyong Street has caused planning headaches for the government.

But Mr Powderly said the planning situation on Northbourne Avenue was easily understood because it was a designated development corridor.

''There's been plenty of buildings built there so everyone understands the rules in terms of height limits and overshadowing,'' he said.

''So it's not a complicated precinct. It's not like it might be in other areas where it's potentially more sensitive.''

Property Council of Australia's ACT executive director, Catherine Carter, said property sales on Northbourne Avenue would be welcome as part of the strategy to locate ACT government administration in Civic.

''The Property Council has no doubt that all sites on both sides of Northbourne Avenue will be saleable provided the sale involves the issuance of new Crown Leases with substantial rights to provide significant numbers of residential units and/or additional commercial development rights,'' she said.

''And so long as there is a substantial period in which additional development rights can be implemented.''

But Ms Carter said the sale prices would be discounted if buyers faced the prospect of paying lease variation charges or it there were strict commence and completed clauses.