Community Services Minister Gabrielle Upton has dismissed the findings by a leading economics consultancy, despite pledging support earlier for a government adviser who is considering the report.

The government's reaffirmation of its hardline stance on the public housing sell-off came as tensions erupted between Sydney MP Alex Greenwich and Sydney Labor candidate Edwina Lloyd over allegations of "disgusting" and "bullying" behaviour towards Miller Point residents.

The government is yet to release a business plan for the sale of 293 properties in Millers Point and the Rocks, or explain exactly how the proceeds will be spent.

Nine properties have sold so far, raising $21.9 million. Three more homes will be auctioned next week.

A report by SGS Economics and Planning, commissioned by a coalition of Millers Point residents groups and reportedly produced pro bono, said the "one size fits all" plan to sell all public housing stock "is likely to lead to an inefficient outcome".

It said properties including the 79-apartment Sirius building were appropriate for continued social housing use and had low maintenance costs, and relocating tenants was likely to be costly.

It called on the government to consider using the sale proceeds to create purpose-built accommodation to house elderly, long-term residents. New affordable housing for lower-income workers should be created in the area to achieve productivity gains and some social housing should also be retained, the report said.

The government adviser overseeing the Millers Point sales and relocations, Owen Donald, met with the report's authors last month.

In a letter to independent Sydney MP Alex Greenwich, Ms Upton said she supports Dr Donald in "exploring its foundations and conclusions". However on Wednesday she said the report presented an "alternative view that the government does not support".

Millers Point: a community under the hammer

Meantime, Ms Lloyd has launched an extraordinary attack on Mr Greenwich.

Ms Lloyd, a criminal lawyer, had allegedly questioned Mr Greenwich's commitment to Millers Point residents in a conversation with a journalist. Mr Greenwich, a long-time opponent of the sell-off, emailed residents denying the claim, and accusing Ms Lloyd of "deceptive political point scoring".

Ms Lloyd retaliated, releasing a statement calling Mr Greenwich "disgusting" and "a bully".

On Wednesday, Ms Lloyd denied making the "bully" claims, before being informed that they were contained in a media release sent on her behalf. She then denied questioning Mr Greenwich's commitment to Millers Point, saying she had simply called on him to "fight harder".

Mr Greenwich said all parties should "draw a line in the sand and work towards a positive outcome for the Millers Point community".