The fairytale estate has its own Rapunzel-esque tower, and it's inviting a new owner to experience it in all its glory.

Built in the late 19th century as a former convent, the home is now a family home with a licensed gallery of art, antiques and luxury jewellery.

Nestled in a tree-lined eucalyptus grove in Springwood, the property boasts six bedrooms, secure parking for eight cars, a workshop and a barn.

The tower and gazebo are set in almost three acres of land, with picturesque views across the property and manicured green gardens.

The property is currently listed for sale through an Expression of Interest campaign with a guide price of $4 million.

The listing agent, Paul Merrick of Merrick Property Group, said he had never seen "a house like this."

These historic listings usually require a lot of work, but they spared no expense, Mr Merrick said.

The main house includes original 19th-century bronze railings, marble fireplaces and sandstone walls.

High metal ceilings and wood floors capture the essence of the original era.

Modern touches include an electric oven, automatic iron front door and one of the four bathrooms doubling as a mirrored steam room.

Mr Merrick said there had been a lot of interest in the property for a variety of reasons.

He said the sheer size of the home had attracted multi-generational families, wedding venue owners and entrepreneurs who were looking to convert the castle into a luxury residence so it could potentially become the "OMG" section on Airbnb.

Mr Merrick said those interested in the property tended to have a strong interest in historic buildings.

Originally built in the 1880s by Sydney businessman and developer John Lalor, the building was converted into a convent in 1920. The convent remained in existence for over 40 years.

It was extensively restored by the current owners at the turn of the century.

Springwood is adjacent to the Blue Mountains National Park and World Heritage Site, 72 kilometres west of Sydney's CBD.

Between two spectacular gorges in the Blue Mountains, it is a centre for nature, art and culture and the perfect setting for an iconic castle.