A Sydney general practitioner this week purchased the building for $650,000, a staggering 500 per cent value rise from its $110,000 sale in 2015. 

Nirmal Taluja, a doctor with more than 40 years experience who purchased the site, is now weighing up several options for its future.

Dr Taluja intends to either turn the property into an establishment centre for refugees, a boarding house for homeless people or a retirement village. 

“It's very up in the air and I'm currently waiting on feedback from the community to find out exactly what the Gundagai residents think would be the best option,” she said.  

“Maybe a retirement village would be best, because from what I have heard some of the older residents have a bit of trouble finding somewhere to settle down.

“One of my main ideas is still to turn it into a refugee support centre.”

She said the centre would teach refugees how to farm, before assigning them some land to look after.

"Of course I have to do a lot of work for it. I'd like to have Australia do something for these refugees, but we have some gain out of it," Dr Taluja said.

The building was originally listed for $1.5 million when it was listed earlier this year in what would have been almost 1400 per cent more than its 2015 sale price.

Dr Taluja said she was able to negotiate down to $650,000.

Riverina property valuer Christopher Egan said the value spike was a “huge concern” and called for its first vendors, the NSW health department, to be investigated.

“To have a growth like that, it’s obvious something has gone very wrong in the way the sale was conducted,” he said.

“This is a public asset, a community asset, and the government should be held accountable.

“It was ridiculously undervalued and the only person getting ripped off is the taxpayer.” 

The department sold the property early in 2015.