Mark Roffey, of Ray White Maitland, is marketing the luxurious residence on 2559 square metres of land within one block of the water.

It was originally set up as holiday accommodation but has been used by its current owners as a spacious family residence.

The property at 2 Fleet Street comprises a five-bedroom residence plus two self-contained units with separate access.

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It has water views, an inground, saltwater swimming pool and entertaining pavilion with an outdoor kitchen and pizza oven. There is a second covered entertaining area and the home has a sauna.

Mr Roffey reported twelve groups attended the property's first inspection last weekend and it will be open again on Saturday from 2pm until 3pm.

"Early interest has come from everywhere," Mr Roffey said. "Last weekend I had people from the Bay, people from Medowie, people from the Central Coast and a lady looking on behalf of her son in Sydney.

"It's a very unique property. It's not a waterfront but it's a 60-second walk to the water and it's a massive home.

"It was part of the resort, which is right next door, when it was built. The house was then subdivided off that. It was then a Bed and Breakfast/AirBnb set-up as a five-star accommodation. It's got the potential to go back to that as well and is a wonderful opportunity for someone who wants that kind of thing."

Kookaburra Lodge is set for an on-site auction at 2.30pm on August 24. A price guide has not been set.

According to Australian Property Monitors data, the median sale price for houses in Salamander Bay has risen from $665,000 for 70 sales last year to $717,500 for the first 36 sales this year, including a price high of $3.5 million for a waterfront residence in Soldiers Point Road

The residence has a private upstairs parents' retreat, a wraparound verandah and multiple living areas including a large lounge with a cathedral Cedar ceiling.

The property also has a remote double garage and large storage room.