The house is in Kelly's Hughes electorate and was purchased for $997,000 in 2010.

Agent James Holt, of Oz Combined Realty, has listed the property with no price guide for the February 20 auction.

"The property has been well received and there has been lots of interest," Mr Holt said. "I expect it will sell on auction day."

Comparable properties in the area have sold for around the $1.45 million mark. The Illawong median house price is $1.25 million according to Real Estate View.

The five-bedroom, three-bathroom home is on an 840 square metre block of land, has three living areas and a swimming pool. The home backs onto bushland reserve.

There is a push from Mr Kelly's local branch to not pre-select him to run as the Liberal Party candidate at the next election.

Mr Kelly, who has been an MP since 2010, said all members had to re-apply for their jobs every three years.

"We have to seek re-endorsement from our party and the electorate," he said.

"Whenever the next election is called, I am confident to stand on my record and seek re-endorsement from both."