The fully renovated terrace utilises upstairs loft space and includes three bedrooms, and an open plan living meals area, opening to an undercover entertainment deck, a paved courtyard, garden and swimming pool.
It also includes chapel-inspired vaulted ceilings, gothic style doors and authentic stained glass church windows.
A spiral staircase leads to an upstairs bedroom. The home also includes a spa.
Normanby Street is at the Ascot Vale suburb border, and walking distance to the Union Road retail strip.
Mr Matthews expects the home will fetch between $800,000 and $880,000.
Holland, who retired in 2008, rose to prominence as a sport commentator, and contestant, in a 2005 series of Dancing With The Stars.
The couple is reported to have paid about $600,000 for the renovated terrace in late 2005.