Artist Margaret Olley's Newcastle terrace to go under the hammer

A property in artist Margaret Olley’s estate has been listed for sale in Newcastle.

Located on Church Street, the three-storey terrace is one of eight properties Olley owned in The Hill precinct in the 1960s.

It was the only one she held onto until her death in July 2011 aged 88.

Set on 120 square metres of land, the property has been divided into two self-contained flats.

The street level unit comprises of four bedrooms, one bathroom and a north facing enclosed balcony with harbour views and a courtyard.

The self-contained basement flat includes one-bedroom, one-bathroom and a private courtyard.

Estate agent Sonia Walkom of Walkom Real Estate says the property can easily be restored to one residence.

In terms of any traces of the renowned artist, Walkom says there aren't any.

"Margaret hasn't lived there since the 60s or 70s and has held the property as an investment," says Walkom.

Walkom says Olley once used the basement as her studio.

The property is due to go under the hammer on May 25 with $600,000 hopes and has a rental income of around $600 per week.

Olley’s Paddington home where she spent most of her time will be gutted and transported to create the $4.5 million Margaret Olley Arts Centre in Murwillumbah.

The regional NSW centre is designed by architect Bud Brannigan and will include exhibition space, an education workshop facility, library, collection storage, multi-media areas and a standalone studio for artists.

It was also include recreations of Olley’s home and studio, including the Hat Factory and the Yellow room.