Warrnambool home sells for the first time in about 40 years

A three-bedroom house on 793 square metres at 4 Lennon Avenue in Warrnambool fetched $35,000 above the expected sale price.

Northeast Stockdale and Leggo Real Estate director Matt Northeast said four bidders - an investor from metropolitan Melbourne and three locals - vied for the home.

Bidding started at $460,000, increasing in $10,000 lots to $510,000, then in $5000 lots to sell to an investor for $525,000.

Mr Northeast said there was mix of investors and homeowners purchasing homes in Warrnambool.

"There's still strong demand from metro areas to invest in Warrnambool but by the same token, you can see by the three local bidders there's still strength in the local market," he said.

"It just shows the strength of the Warrnambool market and there's still strong demand from buyers."

Ray White Warrnambool director Fergus Torpy said there was a strong local contingent at the auctions on Saturday.

Five of Ray White's seven auctions sold under the hammer. One was passed in and another, a three-bedroom house at 1 Parker Street in Warrnambool, sold prior to auction.

Mr Torpy said a two-bedroom unit at Goodall Street, Warrnambool sold to a local buyer for $506,000 with two bidders contesting the auction. "The expectations were around the high $400,000s," he said.

A three-bedroom house at 37 Clifton Street in Warrnambool was passed in at $480,000.

Two bidders took a three-bedroom home at 20 Albert Street in Woodford to a sale price of $910,000. It was bought by a local couple.

Another three-bedroom home at 17 Patterson Street in Warrnambool sold well above its buyer range of $430,000-$470,000 to a local couple for $505,000. There were two bidders.

Forty people attended the auction at 78 Kelp Street in Warrnambool with two bidders vying for the home. "It sold to a person that was relocating for $1.005m, selling at about $125,000 above the owner's expectations," Mr Torpy said.

He said sellers had confidence in the company.

"In the last two years, there was uncertainty with lockdowns and opening up," he said.

"It's the first time in the last three months that we've had consistency of people going on with their life and plans, and there's more stability in Australia at the moment.

Mr Torpy said that during the COVID-19 pandemic, buyers and sellers may have sat on the fence. "We've seen a lot more buyers the past two years than sellers, contributing to strong sale prices and strong capital growth in Warrnambool," he said.

Mr Topy said the vast majority of interest was locally and regionally driven.

Ray White estate agent and auctioneer Jason Thwaites was at the helm to sell 37 Membery Way in Warrnambool. He dubbed the purchase of this three-bedroom 80s architecturally designed house as a "once in a lifetime opportunity". This was the first time the house had been offered on the open market for about 40 years.

At least 35 people attended the auction but attendees were slow to start bidding. Mr Thwaites called for bids in $20,000 lots but, with no opening bids, started with a vendor bid of $680,000. The first bid of $690,000 was accepted and increased in $10,000 bids to $710,000 between two parties. The final bid was $715,000.