Warrnambool's hot property market shows no signs of slowing

A 1960s-era three-bedroom, one bathroom house on Jukes Street sold for $543,000 - $123,000 over the reserve price.

Ray White Real Estate agent Fergus Torpy said more than 50 people turned out in the pouring rain for the auction.

He said the property was expected to sell in the $400,000 to $440,000 range and the sellers - who are relocating for work - were elated with the result.

Mr Torpy said there were six active bidders for the property which had been refurbished but not fully renovated.

He said the couple who purchased the property were moving here from Melbourne.

The other property that went under the hammer was a newer large four-bedroom house at 57 Mitchell Street.

It sold under the hammer for $680,000, $80,000 over the reserve.

About 40 people turned out to witness the bidding which was between three parties.

It sold to a south-west buyer.

Mr Torpy said the outcome for both properties was a really strong result.

"We knew the one in Jukes Street had a lot of interest. We didn't anticipate it going to that extent," he said. "I think the bar is raising. The confidence is creating further confidence."

Mr Torpy said buyers were willing to pay more because the benchmark has been raised. "It's not just happening once in a blue moon," he said.

The median price in Warrnambool hovered around the $320,000 to $350,000 mark in the last 10 years but now it was in the early to mid $400,000s, he said.

"It's a very strong market and strong buyer demand," Mr Torpy said. "That interest has raised prices."

He said the mix of having less properties on the market, less land available, low interest rates, government stimulus and "throw in a pandemic" had driven up prices.

Another property at 37 Lumsden Lane in Koroit that was due to go under the hammer on Saturday was sold on Friday and fetched above the expected sell price which was listed as high $300,000s - low $400,000s.

He said Ray White had 10 auctions this year and all sold under the hammer.

Mr Torpy said next weekend there would be four auctions, followed by the auction of the former CFA site on Raglan Parade on the March 26 and another four auctions the weekend after that.

He said there were seven auctions lined up for April.

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