The Australian Capital Territory (ACT) government auctioned off two significant city sites on Monday; the land and property services expert handling the sale was caught off guard by the apparent disinterest shown by national property developers.

Failing to sell the two sites on London Circuit, state authorities were forced to place the properties on a 48-hour negotiation process with local developers.

David Doars, chief of government land and property services, said that bidding for the two sites progressed slowly and eventually reached a twin price tag of $5.25 million and $8.5 million respectively, which is way below the anticipated value of the properties.

He noted that a similar inner city car park site was acquired in 2007 for a record price of $92 million and all three sites were similarly zoned as development sites for hotel, retail and serviced apartments.

Mr Doars revealed that prior to the properties' auction, his office received feelers from developers outside of the ACT, expressing interest in acquiring the sites.

He said that "we had been lobbied for that site particular opposite the Sydney Building for a hotel by a number of different hotel chains so it was interesting that they weren't there and that's one of the most disappointing aspects."

Since the auction obviously failed to fetch premium offer for the properties, Mr Doars said that his office is now into private negotiations with the two highest bidders to purchase the blocks of land. He noted that both bidders are developers based in Canberra.