The three-bedroom house at 16 Stephens Street was expected to fetch between $800,000 and $900,000 but it attracted plenty of interest, driving the price to $930,000.

Harris and Wood Real Estate's Matthew Wood said the house was last sold in 2011 for just under $300,000, but the owners had extended and renovated the property.

The Sydney-based buyer plans to move to Warrnambool to live in the property.

There were four bidders for the property, but negotiations were eventually with just one bidder, Mr Wood said.

He said he was not surprised by the price, especially in that precinct which was close to both the river and the beach.

He said any property that was close to the beach was now fetching higher prices.

Mr Wood said he had just sold blocks in the Logans Beach area for more than $900,000 and was in negotiations for the sale of a block for $1.5 million.

He said blocks out that way originally sold for about $350,000 when they first came onto the market.

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