Derelict property in Sydney expected to fetch $1m

A central Sydney property so neglected it's unsafe to enter is expected to sell for more than $1 million.

Prospective buyers for the Newtown property need to sign a waiver to enter and can't wear open toed shoes but it's already had offers before any viewings, 7 News reports.

The house sports a caving roof, mountains of rubbish and holes in the floor after being uninhabited for 10 years.

Real estate agent Damien West admitted he was shocked when he first saw the property but believes buyers can see the properties potential.

"People are buying into the dream, they see the property and just picture what they can do with it," he told 7 News.

The house is an original Victorian era terrace, with two bedrooms and a study.

Architect Shaun Carter believes the house has plenty of potential for a buyer prepared to renovate it from top to bottom.

"From a Sydney terrace point of view, it doesn't get much better than this - original condition, it's squalid, it's almost derelict, so you can touch every surface," he said.

The house will be put to auction in March.