Defence-owned sites in prime real estate locations, including two naval bases on Sydney’s lower north shore, could raise billions for the federal government if sold, freeing up land for high density housing and raising money to fund a Defence budget stretched by AUKUS demands.

An audit of Defence’s sprawling property portfolio – which includes 2.8 million hectares of land in Australia, 70 major bases, 28 airfields, 72 training areas and 61 wharves – will soon be released by Defence Minister Richard Marles.