A young family have snapped up a refurbished South Geelong cottage amid interest from first-time buyers looking to settle in the inner suburbs.

The couple with a baby had dad’s help in bidding for the two-bedroom house in 201 Swanston Street Saturday.

The Weatherboard Cottage, located three doors down from Geelong’s Little Creatures Brewery, sold for $762,000.

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The sale netted a bonus of $42,000 for the sellers, who Hayeswinckle’s agent Michelle Winckle said had set a reserve price of $720,000 for the property.

The renovation of the chalet has created an impressive open plan layout which has preserved the character features of the house, whilst providing modern luxury.

The siding house offers three bedrooms, including a luxurious master suite.

The living area combined living room and dining room with original open fireplaces.

This leads into a remarkable kitchen with an expansive concrete worktop and stainless steel appliances.

A backyard studio added flexibility for buyers.

Ms Winckle said it was a well run place in the center of Geelong

“The waterfront is literally at the end of the road, the city of Geelong is down the road. We are on the doorstep of everything,” she said.

“The house is immaculate, nothing to do, you have two or three bedrooms, but you want to furnish it.

“You have this fantastic space in the back, you can have it as a home office or a teenage retreat.”

A young couple opened the auction at $700,000 and competed against two other parties, but resigned themselves to missing out as the winning bidder topped $760,000.

Ms Winckle said she has now sold three neighboring properties at the bottom of Swanston St, where young first-time buyers have emerged as the main buying demographic.

“I think because these little cabins are smaller, so they’re more affordable in downtown neighborhoods,” she said.

“Downtown you’re going to pay for a four bedroom (house), most of them are $800,000, $900,000, so getting something in the $700,000 range is always a good opportunity to break into Geelong Market. .”

South Geelong is a traditionally tightly held market, with a median property price of $987,500, although it topped $1m earlier this year, according to PropTrack data.

Originally published as Funky South Geelong home delights first-time buyers