The century-old residence built in 1919 for BHP Steelworks manager David Baker then later used to entertain dignitaries has been restored over the past year by long-term owners John and Sheryl Nisner and was launched to market on Friday.

It will be sold through public tender and marketing agent Darren Penn, of Ray White Newcastle and Lake Macquarie, expected the property's appeal to be widespread.

"I think there will be genuine interest from outside of Newcastle," Mr Penn said.

"Compared to real estate in places like Sydney and Melbourne, the property would represent unbelievably good value, so I would think there's going to be good, strong Sydney interest and potentially a bit of international interest for those people that do business in Newcastle."

Mr Penn said a guide has not yet been set due to its uniqueness. Distinguished guests to have visited the property include Edward Prince of Wales, before he became King Edward VIII, Lord Louis Mountbatten and Queen Elizabeth II, during her tour to Newcastle in 1954.

In more recent times, the two-storey Edwardian mansion has been used as a wedding and function venue known as Bella Vista. It held its last wedding in December 2017.

The grand residence features five bedrooms and bathrooms, a palatial grand hall, modern kitchen, sitting rooms and terraces on 1664 square metres of land at 47 Church Street in Mayfield.

The landmark listing comes in the same week as a Lake Macquarie record $6 million was paid at auction for Eraring estate Mandalay at 7 Foreshore Street. It was bought by a Sydney businessman for use as a weekender.

McGrath Toukley's Chris Smith described the sale as "a game-changer" for the region. He and Mitchell Thomas marketed the luxurious six-bedroom, six-bathroom home with a 14-car garage on 6.75 acres on the peninsula.

It eclipsed the $4.25 million paid in January for the waterfront home of former Newcastle lord mayor Jeff McCloy in Belmont, which was followed by suburb records in Warners Bay, Speers Point and Murrays Beach.

Property data from analysts CoreLogic show the median dwelling price rose a healthy 0.8 per cent in July in Newcastle and Lake Macquarie.