Only in Sydney could a crumbling substation surrounded by frangipanis spark a bidding war.

Across the city’s north, tiny parcels of land once home to electrical infrastructure are now selling for eye-watering sums—as high as $1.8 million. No running water. No home. Just a box that hums.

And yet, the buyers keep coming.

In one case, a 50-square-metre block in Mosman—half of it taken up by a power box—hit the market for $300,000. Another 240-square-metre site went for $800,000. Two more fetched $1.43 million and $1.8 million respectively, both eclipsing Sydney’s $1.2 million median house price.

For context, that’s more than what many family homes are going for…except these ones don’t have kitchens, bathrooms, or roofs.

So What’s Going On?

According to Cotality’s Tim Lawless, it’s a stark sign of Sydney’s housing crunch. He called it “a sad indictment on the availability of strategically located developable land” in a city of 5.5 million people.

And he’s right.

These substations—relics of old infrastructure now being offloaded by Ausgrid—are attracting interest from first-home buyers, builders, and next-door neighbours hoping to expand. But developing them won’t be easy. Between tight footprints, heritage overlays, and the need to maintain access to the electrical gear, any future build will be a test of creativity (and patience).

Some councils say it’s technically possible to build on these sites—just don’t expect it to be straightforward. Mosman Council said any dwelling would have to be proven safe to live in, and developers would need to leave space for maintenance access—taking at least 12 square metres off the table from the start.

Still People Are Circling

For many, it’s about getting a foothold in the market. As one local put it: “Here’s a chance to start.” Even if that start is a shed next to a substation.

But it also points to a bigger truth: we’re running out of accessible, developable land in the places people actually want to live. And when buyers are seriously weighing up whether to turn substations into studios or Airbnb pods, you know the system’s overdue for a rethink.

“There’s no reason we can’t build smaller homes, townhouses, or apartments in compact ways,” said Michael Fotheringham from AHURI. “But when even compromised blocks are going for this much, it shows just how broken the cost of land has become.”

At The Good Builder, we believe this moment is more than just a quirky real estate headline. It’s a reflection of where the cracks are, literally and figuratively, in the way we think about land, density, and housing opportunity in Australia.

If you’ve ever tried to build in Sydney, you already know this:

The real issue isn’t people living in substations.

It’s the fact they feel like their only option.

We’d Love To Hear What You Think?

Have you come across a wild block of land for sale? Trying to build on something the size of a car spot? Or maybe you’ve got thoughts on how we actually fix housing in this country.

Drop us a line. Share your story.

Because The Good Builder isn’t just a media page…it’s a community of people who care about doing things better.

Builder to builder. Person to person. Let’s talk.

Author: The Good Builder

The Good Builder is a media platform that provides news and insights for Australia’s home building industry. From exclusive stories and curated insights to bold industry perspectives, we deliver the news and updates that keep builders, suppliers, and the entire home building industry inspired and ahead of the curve.