The four-bedroom home at 30 Howard Street drew more than 120 people, who watched on as five bidders tussled for the property. Bidding opened at $450,000 and moved in $20,000 bids to $510,000, before hitting $520,000 and then jumping to $540,000.

A raft of bids of $5000 and less ended in the final selling price of $595,000.

It was one of two successful auctions for the day in Warrnambool, with a four-bedroom house at 141 Drummond Street, Dennington, selling for $315,000 after opening at $250,000, with competition between three bidders in an audience of about 60 people.

"Warrnambool and the south-west are well and truly on the radar in property circles and the buyer interest is very positive about the area," auctioneer Jason Thwaites of Ray White Warrnambool said.

The four-bedroom Dennington property attracted three bidders, with more than 60 people looking on as the bidding opened at $250,000 and climbed mostly in $10,000 and $5000 bids to its final sale price.

Auctioneer Jason Thwaites of Ray White Warrnambool said the Warrnambool market was attracting a lot of local interest but was also drawing buyers from interstate in search of investments.