Heritage-listed Redfern shack fetches $2.7 million pre-auction

A rundown Redfern shack, has sold for $2.7 million before its scheduled auction, but at substantially less than initial hopes.

It hit the market with $3 million price hopes early last month but these were later revised to $2.5 million.

The sale follows a quick burst of activity in the run down housing market.

Recently a dilapidated Paddington terrace sold for $1.19 million, $190,000 more than it traded for in eight months.

A Rozelle home with no rear wall has been listed for $1.4 million.

The Georgian house, known as Dascombe Cottage at 46-48 Burnett Street sits on a rare 507 sqm land parcel, almost five times larger than other lots in the suburb.

Most of Redfern's slim terraces are squashed into blocks of about 100 sqm.

Extra stories cannot be added to the home and the front facade can only be altered if the new owner is restoring the original features.

The mid-Victorian-era home dates back to at least the mid-1850s and is part of the original estate of William Redfern, the suburb's namesake.

The Burnett Street property sold through BresicWhitney. 

Most of the inquiries came from developers looking to subdivide and locals looking to build, with the potential to put a new home alongside the existing building.