Formerly known as the War Memorial Hostel, and more recently used as a backpacker's hostel, the property, located at 112 Binya Street, was sold by tender just before Christmas.

Rawlinson and Brown's Robert Cavallaro said it was good to see the property sold to locals who did not wish to be named.

While Mr Cavallaro would not reveal how much the building went for, he said it had "exceeded all expectations".

"Multiple tenders were put in and the majority of people were looking at it for the accommodation industry," he said.

"The new owners are intent on utilising it for that purpose and will be doing major cosmetic changes.

"People generally acknowledged that it's a well-built building and the location is second to none."

Mr Cavallaro said prior to the sale, the agency had received enquiries from all over Australia.

"We had a lot of interest,"?he said. "It was well above what we expected. It is a good result for everyone.

"Over the years not a lot of money has been spent on it but the new owners want to get it back to its former glory."

The building was officially opened around 1964 in honour of those serving their country between 1939 and 1945 and used as a boarding house.

It features nine massive dorm rooms, a huge games/dining hall and a large lounge/theatre room.

There is also an industrial-style kitchen with walk-in pantry and large cool room, multiple toilets and showers and office.

The self-contained two-bedroom caretaker/granny flat has a small kitchenette.