Sydney's prime real estate for a pittance

Multi-million dollar views in an inner-city paradise for a pittance.

With public housing tenants set to be turfed out of one of Australia's oldest suburbs, the question has to be asked.

How did the Sydney residents secure such a good deal for so long?

One man lives in a four bedroom home at Millers Point, the tenancy for which he took over from his mother 12 years ago.

His mother's tenancy spanned 16 years and the man now lives on his own and pays $271 rent a month compared to the estimated market rate of $4000 a month.

Vacancies at Housing NSW's heritage listed properties at Millers Point are few and far between, with many residents having held onto their leases for life.

"They do come up from time to time but I would characterise it as stable," Tenants Union of NSW policy officer Chris Martin said.

"There is a significant number of people who have been there for decades."

Public housing tenants at The Rocks and Millers Point are outraged over the NSW government's decision to move them off the prime Sydney real estate over the next two years.

The 293 properties, mostly heritage listed, will be put on the market and 400 residents relocated.

Mr Martin said many public housing tenants had been in the units and houses since before the 1980s when the Maritime Services Board owned the properties.

"There are people who have been there since that time and some of them worked on the harbour," he said.