It is not like your usual residential property that hits the market in Tasmania.

With a price tag of $3.2 million, which includes a cottage without a roof, it is going to be hard to attract a buyer.

But there has been significant interest in the piece of Launceston history that is up for grabs.

Shane Dennington from the Duck Reach Historic Society said it was a significant site.

"It was built in 1895 and that was to house the manager of the power station until about 1955 when they decommissioned the power station," he said.

The power station was the first publicly owned hydroelectric plant in the Southern Hemisphere, with Launceston being the first city in Australia to have public-generated hydroelectricity.

In 1955, the cottages were given to the Launceston City Council and fell into disrepair before they were privately bought.

The cottages have played a role in Launceston's history.

"It was a very successful period for the Launceston city, busy port, cheap electricity and historically, it was a monumental area at the time," Mr Dennington said.

"We were one of the richest cities in Australia at that time."

The property is perched on 2.99 hectares of land on a hilltop overlooking the South Esk River and built of bluestone.

The sale includes two cottages. One has been renovated but the former manager's residence was extensively damaged by fire in 2011.

It will need to be rebuilt.

It is estimated a new roof will cost up to $400,000.

'I always fantasised about owning it'

The property has been owned for the past 30 years by Peter Morton.

"It was an amazing adventure and a great privilege to live here for 30 years almost," he said.

"I knew about the property before it came onto the market and I always fantasised about owning it. I thought what a wonderful place to live in.

"Low and behold, finally it came onto the market.

"I couldn't attend the auction. I had my father bid on my behalf and I said to him: 'Get that property for me, Dad, if you don't get it, I'm leaving home and I'm changing my name'."

Real estate agent Chris Huxtable said there had been interest in the property.

"It would be a perfect property for a tourism type development. It really has that commercial edge to it or it could just be a wonderful private property or that somebody uses as an art precinct.

"You can't find a property like this in Australia."

Mr Dennington says the new owners will have their work cut out for them to restore the manager's house.

"It's in a fairly bad state now and I think it's beyond repair. It's been let go for years," he said.