The Queensland town for sale for less than the price of the average home in Sydney remains on the market for offers over $750,000.

Reports over the weekend suggested the town was under contract, but Julie Sutton, Principal with Sutton Nationwide Realty Gin Gin, tells realestate.com.au that the contract did not go ahead and the property is now back on the market.

The tiny town of Allies Creek in Monogorilby, located over 200km north-west of Brisbane includes 16 homes, a water treatment plant, a mill and a dam with a pontoon and it is still for sale.

“It’s such a bargain, that’s the thing,” Sutton says.

The current owner had reduced the price to $750,000 — some $30,000 less than you would pay for a house in Sydney – but Sutton insists offers now need to be above that price.

According to CoreLogic RP Data, the median sale price for a home in Sydney in April was $780,000.

Allies Creek in Monogorilby has been owned and operated for years by an unnamed married couple, with the passing of one partner resulting in the other looking to move on.

The remaining owner is “a bit overwhelmed” at all the media attention the town has generated in the past week, Sutton says.

But Allies Creek is an “extremely profitable” business.

“It has commercial rent as well we residential…the possibilities are endless. It could hold fantastic music festivals, it could be for groups that have large camp outs, it could be for a Scout club or group to own, it could possibly be set up as a caravan site. It’s just endless what you could do with this place,” she says.

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Some of the town’s 16 houses – made up of two, three and four bedroom properties – are currently tenanted.

That small population is likely to soon grow.

“There would be a minimum of six, seven houses rented out at this stage. But with new fruit pickers coming into the area that have just been moved there, over 300 of them, that could be changing, obviously,” she says.

Video: Town for sale

In addition to those homes, the school, church hall, water treatment plant and power station, there is also an old mill and a collection of machinery included in the sale.

“It was (home to) a decommissioned saw mill. That could be up and running again because it’s certainly got the equipment and sheds there for it.

“The machinery is just unbelievable. It’s unbelievable what’s going with this property,” Sutton says.

There is a large dam with a pontoon, walk out bridge and private canopy.

The 16ha town sits on five titles and includes street lights, running water, Telstra connections to each home, a caravan park and groomed parkland.

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While the town has been on the market since last September, the price drop in March has attracted interested parties from around the world.

“It’s crazy, it’s just been absolutely crazy.

“I’ve had (calls) from every state in Australia. I’ve had these viral reporters (call) who are very, very interested from Hong Kong, Ireland, Scotland, New York,” she says.