Auctioneer Will Munro negotiated a sale "well above" the advertised price after the auction with a Melbourne woman.

The auction attracted twelve punters, who were interested in the three-bedroom property on Princes Street South.

Earmarked as a potential rental property, the unit, situated close to the Bridge Mall and Supermarket Complex, had plenty of scope for renovations, according to Mr Munro.

"She's (buyer) going to do a little bit of work to it and because she has family in the area she will use it as a place to stay when she comes down to visit," he said.

Mr Munro, who said the house was situated in a great area with a lot of potential, said Ballarat's property market has been going "very well" recently, with a constant flow of properties being offered at auction.

Positioned close to public transport and the CBD, the property had a large basement and backyard area which had plenty of room to be developed, Mr Munro said.

Inside includes an open plan kitchen with electric oven, gas cook top and plenty of bench space along with a bathroom and separate shower room.