The website of the East Central apartment project in Surry Hills by Samadi Developments features a black and white photograph of a woman lying down with her arms crossed.
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Sam Elbanna, managing director of CPM Realty, which is marketing the property, told News Limited the development was of a high standard and needed an eye-catching campaign.
“Our marketing company decided the building would be very beautiful and wanted to reflect that with a beautiful female body," said Mr Elbanna.
"People looking for developments online are looking for something a little bit out there."
Mr Elbanna said CPM Realty was not planning to use the image in other forms of advertising.
Owner of Mahon Property Partners Michael Mahon said he did not find the advertisement offensive.
“From both a real estate and marketing perspective, it is my professional opinion that the image of the lady has been portrayed both tastefully and elegantly,” he told Real Estate Business.
He said the targeted group of buyers would not find it offensive, but would relate to it.
“I think in terms of creating that right neuro-association, creating the right emotive feeling, I think that’s going to work for them,” he said.
“From a marketing perspective, you want things to stand out. You want things to be noticed. You want to be different. That’s what they’re trying to do there.
“From a real estate point of view, is it cheap? There’s no actual nudity there. Everything is covered up or concealed, so I don’t think it’s cheap or tacky at all.”
Internet marketing business development manager at Elders Real Estate Toongabbie Jhai Mitchell agreed the advertisement would help generate publicity for the property, but he felt it was unnecessary.
“There are so many more ways to generate buzz without having to resort to a half-naked woman,” he told Real Estate Business.
“They have just gone for the easy, cheap option. I don’t think they really needed to make themselves stand out like this.”
While the target demographic was unlikely to be a young family, Mr Mitchell said the advertisement could still possibly deter potential buyers who have had enough of the overuse of sex in advertising.
Real Estate Business sought comment from CPM Realty but they were unable to respond at the time of publishing.