The central home sold for $610,000 which was more than $110,000. The property's original price guide was $460,000 to $499,000.

Ray White Warrnambool agent Tessa Dayman said interest was very strong and bidding opened at $430,000.

The were four registered bidders and bids rose in $10,000 increments up to $600,000, followed by two $5,000 bids.

Ms Dayman said the home was purchased by a couple from regional Victoria as an investment, with the view to retire to the property later on.

The home, on a 455 square metre block, has dual access off Denneys Street, which also appealed to buyers, she said.

"This couple indicated they weren't going to subdivide the block but there were people there looking for subdivision and development potential.

"It's a street record for the highway in regards to a three-bedroom, one-bathroom property and it was definitely more than we expected," Ms Dayman said.

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"We're ecstatic," she said. "The owners had had it for 18 years and it's been very well loved and there's some historic significance at the property which dates back to the late 1800s.

"The people who bought it are going to keep it in the theme of what it is and love that older style home.

"Everyone from both sides are very pleased with the result and it's a great indication that the market is still strong," Ms Darman said.

Meanwhile, a three-bedroom home in the Wollaston Way Estate sold for $640,000, which was well above its reserve.

Ms Dayman said the near-new home at 1/1 Shaw Street, with two bathrooms and a double garage, sold to a couple who were downsizing and wanted a low-maintenance property.

It is on a 400 square metre block and had a price guide of $540,000 to $589,000.

Another property to go under the hammer on Saturday was a two-bedroom townhouse at 1/29 Caroville Drive.

It sold for for $456,000, more than $30,000 above its reserve.

Ray White Warrnambool auctioneer Jason Thwaites said there were four bidders interested in the single-storey, low-maintenance property.

The townhouse had a price guide of $385,000 to $423,500.

"The people looking at that property were all looking for something to live in, and to downsize to so it was a neat option for them to move into," Mr Thwaites said.

The townhouse is on a 280 square metre block and has one bathroom and a single-car garage.

"It was built about 15 years ago and is very, very well presented and in a great spot and tucked in behind Wannon Water and Gateway Road, not far from the shops," Mr Thwaites said.

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