Derelict Sydney house once taken over by squatters to fetch more than $1m at auction

A Sydney home that was once taken over by squatters is set to go up for auction, and despite being described as "dilapidated" it's expected to go for seven figures.

Situated in Redfern, 544 Elizabeth Street, will once again go under the hammer.

The two-bedroom, one-bathroom terrace is not currently in its best state, but that could be what the right buyer is after.

The listing said the terrace could be a "wonderful blank canvas opportunity" for those with "creative vision and determination".

"It sits in a prime city edge setting and is completely unliveable, yet it comes with DA-approved designs for an upgrade, renewal and a second-level extension," the listing says.

"This classic Victorian terrace represents a unique prospect with a big future and is tucked away well back from the street close to Redfern's café hub, a short walk to the station, Prince Alfred Park and the CBD."

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The listing says the designs could see a second-level extension, three bedrooms plus a study and a paved entertainment area in the private and sunlit backyard.

All of the approvals are in place and renovations are ready to commence, the home just needs someone to pick it up at the auction which is set for July 2.

The terrace house has a price guide of $1 million, realestate.com reported.

The home itself has quite an interesting history.

It was purchased in 1991 for $143,000, however, the home was left empty for 10 years after the buyer returned to China in 2007.

A squatter eventually moved into the home and then got involved in a legal dispute with the neighbour.

Eventually, the home was sold in December 2017 for $1.11 million, Domain previously reported.

The family who last bought the home is hoping to move to western Sydney, the Daily Telegraph reported.

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