South Warrnambool house sells for $950,000 at auction

The sale price was $70,000 above the reserve for the property at 4 Pertobe Lane which was expected to fetch between $850,000 and $890,000.

The original price guide for the property was $800,000 to $850,000 but was increased to $850,000 to $890,000 after an offer was made before the auction.

A large crowd watch on as the auction got under way on Saturday July 22 with a vendor bid of $800,000, quickly rising in $10,000 bids to $900,000 and then $5000 bids to the final price.

Harris and Wood auctioneer Matthew Wood said last week a block of land sold on the corner of Stanley and Stephens Street had sold for $820,000.

A 1940s cottage in South Warrnambool was sold twice in the last 12 months - first fetching $940,000 and then resold at $950,000, he said.

"The value in South Warrnambool, you can not replace it," he said.

With South Warrnambool so tightly held, he told the crowd that the chances of finding another house like the one in Pertobe Lane was "next to none".

"If you want to be in the South Warrnambool precinct, now's your chance," he told the crowd.

The modern three-bedroom home features two living areas, polished concrete floors, underfloor heating, a cube fireplace, outdoor alfresco area and double garage on a 505-square-metre block.

Mr Wood said it was located in the city's old village area where there were not many newer homes.

"Typically what we're seeing is people buy older homes and knock them down and build newer ones," he said.

"To get one that's already been done, and given the cost of building has increased at the moment, it's probably why that was so hotly contested."

Mr Wood said the livability of South Warrnambool was attracting buyers. "Once you're home you can walk everywhere," he said.

"You can walk or ride your bike to the CBD, you can walk to the golf course, you can walk to the Lake Pertobe precinct and down to the beach and then you've got your cafes and restaurants all close by.

"It's the real livability of the area that makes it appealing."

He said he wasn't surprised by the price given the suburb was so tightly held.

"To get the opportunity to buy in South Warrnambool is rare," Mr Wood said.

"The owners were more than happy, in tears with joy with the result. So it certainly exceeded the reserve."

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