Bidding on the three bedroom home in centrally-located Howard Street started at $650,000 and went up in increments of between $5000 and $10,0000.

The auction attracted three bidders with a 30-strong crowd.

While bidders were slow to start, the property ended up selling for $775,000.

Auctioneer Jason Thwaites, from Ray White Warrnambool, said the buyers were "local with a bit of an investment angle".

"This is another positive result for the city," he said.

"The central properties always attract a lot of attention."

Mr Thwaites said it was the first time the Howard Street family home had been on the market in 49 years.

"It was a big decision for them to move on," he said.

Mr Thwaites said the stone home was built on a 909m2 block in circa 1945.

He said there were very few houses built in that era.

"A property like this is built to stand the test of time," he said.

"It is very, very attractive to any buyer and its location is second to none."

MORE READS:

Meanwhile in Saltau Street, another three-bedroom property also attracted plenty of interest.

The retro property went under the hammer for $395,000 in front of about 30 people.

Auctioneer Chris Thomas, also from Ray White Warrnambool, said the property had a price range of $350,000-$380,000.

"It went above that expectation," he said.

"It's a really good result. The owner, an investor from Melbourne, is really happy."

Mr Thomas said there were four active bidders with the final buyer living outside of the south-west.

"We started at a vendor bid of $300,000 and it went up in $20,000 increments pretty quickly," he said.

"It was very competitive bidding."

Meanwhile, an auction at Norman Street was cancelled and another at Penfold Drive was passed in at over $500,000.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.