The historic house, The Wattles, on Jamieson Street was built in the early 1900s and Charles Stewart agent Penny Adamson said it had been "exquisitely renovated" and was "ideally positioned".

She said the property, on a 920-square-metre block, had been on the market for a week-and-a-half and had received "very solid interest from cash buyers."

Ms Adamson said houses continued to sell quickly in Warrnambool because buyers were coming in with their best offer.

"They're selling quickly because buyers aren't playing games," she said.

"They're not sitting back and waiting.

"They're coming in with their best offer on day one.

"Warrnambool's market, I believe, still isn't overinflated.

"Particularly at the top end.

"Warrnambool is a beautiful part of the world and our market represents good value.

"We've seen substantial interest from levels of $1 million up to $5 million.

"A combination of shortage of properties on the market, record low-interest rates, record high commodity prices and also high levels of disposable income combined with COVID lockdowns are driving buyers to the south-west.

"Our livability, commutability and underpinning security of the surrounding rural sector, security of season and low interest rates will see the focus on investment in the south-west continue to grow."

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Meanwhile, another centrally located house in Banyan Street has also attracted strong interest after being recently listed.

The three bedroom house has a price range between $1,090,000 to $1,190,000.

Ms Adamson said there had been substantial interest with one party looking to make an offer on it this week.

She said the property could suit someone who might want to run a business from home or generate income from boutique accommodation.

"It's special for two reasons it's beautifully renovated and there's still potential to put finishing touches on it," she said.

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"It's an ideal location, it's one block from the main street and it's got a beautiful boutique suite nestled in the rear garden and that's got private access and could be the perfect home office, extended family retreat or even run as an Airbnb. That really give the house an extra dimension."

The property is a conjunctional listing between Ms Adamson and Homeseeka agent Martin Rivett.

RELATED: A three bedroom house on Smith Avenue sold for $866,000

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