Receivers in charge of the Oxford Tavern and former Dwyers car yard site say a decision to sell the properties separately was made on the back of advice from specialist real estate consultants.
Corporate recovery firm McGrathNicol confirmed property advisers had recommended against selling the two prominent CBD sites as one holding.
"After exploring a range of options it was determined that there was no benefit in dealing with the two properties together given they have different zoning restrictions and are separated by a main arterial road," McGrathNicol partner John Cronin said.
"Therefore, the receivers are taking the Oxford Tavern site to market now."
Real estate agents Jones Lang LaSalle and MMJ Wollongong this week announced they had been appointed joint agents to manage an expression of interest process for the sale of the Oxford Tavern block.
Mr Cronin would not reveal whether a reserve price had been set for the property, or what he estimated the final sale figure might be.
Wollongong Lord Mayor Gordon Bradbery yesterday ruled out a council bid for the property, believing it was less strategically important than the Flinders Street site, which the council bought last year for $5.2 million.
When asked about the future of the Dwyers site, Mr Cronin would only say a number of planning strategies for the property were being investigated.
The sites were earmarked for a lavish $160 million shopping and entertainment complex, however the project failed to eventuate when proponent Wollongong City Plaza was placed in receivership.
Wollongong City Council has used sections of both properties for temporary public parking for the past two years, although much of the Dwyers site remains overgrown and unused.
A council spokeswoman said the impending sale would not affect the city's parking stock as it had only ever been earmarked for short-term use.
"Council has begun the development of additional parking in George Street," she said.