Six Housing New Zealand Corp (HNZ) homes in Otago and Southland were among the 174 properties sold nationally in the past 10 months for a total of $42.2 million.
Three of the southern houses were in Gore and three were in Dunedin, in Green Island, Wakari and Sawyers Bay.
Together they realised $823,465, with the average price $137,244.
The Government agency got the biggest windfalls from high-priced Auckland sales, where 11 houses sold between July last year and the end of April yielded $9 million.
HNZ asset development general manager Sean Bignell said the corporation had a policy of selling high-value properties, expected to fetch more than $700,000.
That money was then reinvested into housing for those most in need, he said.
HNZ sold a Remuera property, valued at $770,000, for $1.3 million and a Pt Chevalier house, valued at $740,000, for $850,000.
Both were in desirable areas but were now in private hands and expected to be either removed or redeveloped.
Mr Bignell said the value of the corporation's expensive properties was in the land, not the houses.
"Where HNZ has identified high-value properties, it will consider a range of asset management options which include retain as is, redevelop the site and/or dispose and reinvest in more appropriate housing.
"The corporation also has a strategy to sell state houses in areas with low demand and to invest the proceeds of sales in acquiring housing in areas of high demand.
"In addition, the corporation is selling homes of the wrong size in high-demand areas and is replacing them with homes of the right size," Mr Bignell said.
HNZ had not bought or leased any houses in Otago or Southland in the past 10 months, a spokesman said.
As of last month, HNZ managed 69,515 state rental properties.
Mr Bignell said it was expected the total number of state houses would remain relatively constant over the next three to five years, with a focus on ensuring state houses of the right size, right type and right quality were located in areas of highest demand.
- Additional reporting Allison Rudd
