A defence expert has warned Australia is risking a national security crisis by selling off a historic Melbourne shipyard to a Chinese-linked developer.

Michael Shoebridge, director of Strategic Analysis Australia, warned the country is giving away a prime site that could be used to build future naval capability and should be retained for defence purposes.

The former shipyard at Williamstown was used to build the Royal Australian Navy’s Anzac-class frigates, which remain in service.

“We are not going to get a site like that again,” Mr Shoebridge told News24 host Jaimee Rogers.

“Selling it off for a cheap sugar hit for some apartments is a really bad idea.”

Mr Shoebridge said countries around the world were investing in their shipyards rather than selling strategically important waterfront land, arguing Australia should be doing the same.

He also criticised the government’s plan to sell dozens of historic defence properties, including Sydney’s 184-year-old Victoria Barracks.

“We can’t get that real estate back again, and we should be investing in our defence capability and our defence industry,” he said.

“I can’t believe we’re giving this golden site away.”

His comments come amid a debate over the Albanese government’s proposed disposal of 67 Defence properties, with Deputy Prime Minister and Defence Minister Richard Marles previously arguing the military no longer needs Victoria Barracks and that maintaining the site would cost taxpayers $200m over the next decade.

Mr Shoebridge also raised concerns about the growing threat of cyber-attacks, saying there were legitimate reasons for households to consider keeping some cash and essential supplies at home.

He pointed to reports of European supermarket networks being crippled by recent cyber attacks.

On Australia’s $368bn AUKUS submarine program, Mr Shoebridge said the government needed to better explain why the investment was the right use of defence funding.

He questioned whether a fleet of eight nuclear-powered submarines, expected to be delivered over several decades, would provide enough capability across Australia’s vast maritime approaches.

“We absolutely should” be investing in emerging capabilities such as drones, he said, arguing they could provide greater numbers and coverage.

He did, however, reject suggestions Australia should abandon AUKUS on the basis that China did not pose a military threat, pointing to Beijing’s activity in the region and its recent naval deployment around Australia.

Read related topics:National SecurityVictoria Barracks