Therese Rein said the couple were selling the family home after 20 years to "get more Sunny Coast sand" between their toes.
The two storey home is described as a "classic colonial entertainer", and features a wrap-around verandah, large pool and tropical surrounds.
The couple paid $384,000 for the house in 1994.
The listing says the home features "extra high ceilings, original hoop pine polished floors, beautiful stained glass features, original fretwork and a stunning kitchen".
Ms Rein said she hoped "a new family loves it too".
The five-bedroom, two-bathroom property is said to be "tucked away and extremely private".
The home has a renovated kitchen.
The Norman Park property failed to sell when it was listed for $1.25 million in December last year.
The house sits on 800 square metres and is one of several properties owned by the former prime minister.
One of the home's two bathrooms.
The ground floor is described as the "perfect teenagers retreat".
A more casual living area has French doors leading to private courtyards.
The property is close to private schools and public transport access to the Brisbane CBD.
Mr Rudd and Ms Rein successfully sold a vacant block of land near the property for $1.7 million in November last year.
