A landmark Paddington home once owned by Malcolm and Lucy Turnbull has hit the market with a jaw-dropping price tag.

Alster House was purchased by the former-prime minister and Mrs Turnbull in 1988 for a then-suburb record of $2 million.

Built circa 1878, the landmark home has a history of breaking records in one of Sydney’s most sought-after suburbs. Photo: The Agency

The four-level, five-bedroom Victorian terrace at 44 Goodhope Street, Paddington will go under the hammer on September 22.

Built in 1878, the historic home is expected to once again smash Paddington’s price record with an anticipated selling price of $15 million.

The luxury five-bedroom home is described as an “urban oasis”. Photo: The Agency

The sought-after inner-city suburb’s current home price record is held by a converted pub, the former Windsor Castle Hotel, which sold for more than $13 million in 2015.

The Turnbulls may now be wishing they had held onto the property, which they sold for a loss at $1.73 million in 1995.

The high-powered couple then moved to their current family home, a Mediterranean-style waterfront mansion in Point Piper then known as Le Gai Soleil.

Malcolm and Lucy Turnbull’s current home, a waterfront mansion in Point Piper, is estimated to be worth more than $50 million. Photo: Getty

The Turnbulls paid $5.425 million for the Point Piper property in 1994, which is now estimated to be worth more than $50 million.

The four-level Paddington property features a 25-metre lap pool, Japanese gardens, media room and a “lavish” master bedroom suite. Photo: The Agency

Housing a future, and now ex, prime minister isn’t Alster House’s only claim to fame however, with the Paddington digs hitting the headlines numerous times over the decades.

In 2001 the home won a prestigious Australian Institute of Architects award thanks to a substantial redesign by architect Andrew Nolan.

Alster House is expected to smash Paddington price records when it goes under the hammer in September. Photo: The Agency

The luxurious pad boasts a 25-metre lap pool, Japanese gardens, a media room, gourmet kitchen, resort-inspired guest suite and “lavish” master quarters.

Selling agent Ben Collier described the property as an “iconic home” that occupies a “very significant” place in Sydney real estate history.

The redesigned Victorian terrace features a 25-metre lap pool. Photo: The Agency

The residence was purchased by current owners, lawyer Naomi O’Brien and former Macquarie executive Paul O’Brien, in 2006 for a then-suburb record of $6.55 million.

“It’s one of those houses that always captures everyone’s attention and imagination,” Mr Collier said.