With its rear garden flowing on to the Union Lawn, the Cumberland St property is as close to the heart of the campus as you can get.
The two-storey house was built about 1914 and is a category 2 designated building under the Historic Building Act. This meant it was deemed to be of ''historical or cultural heritage significance or value''.
Bayleys Dunedin director Robin Hyndman expected the property would attract ''strong interest'', given its ''unique'' location.
In recent years it had been used as a student flat and leased to the university, Mr Hyndman said.
It has a government valuation of $395,000, but was expected to sell for more than that, he said.
Asked if it was interested in buying the property, Otago University property services director Barry MacKay said in a statement:''It would be inappropriate for the university to comment as this property is currently subject to a tender process.''
