Clunes real estate agent Aaron Gay, of Doepel Lilley & Taylor, said there had been more sales in the town over the past five months, with 95 per cent sold to Melbourne buyers.

Established homes and blocks had attracted an equal amount of interest.

Mr Gay said land blocks were selling for about $40,000 in Clunes, while a run-of-the-mill 1960s three-bedroom home would sell for between $160,000 and $170,000.

"What you could gain in Clunes, you couldn't gain in Melbourne," he said.

"It's the buy-in price in Clunes, you can't afford it for a third of the price in Melbourne, and the return is just as good."

Mr Gay said the agency had seen plenty of internet inquiries from investors and weekenders, who had bought blocks of land, as well as developers looking to build display homes.

He described Clunes as a "buyers market", not a selling market for those wanting to cash in on their property.

"Melbourne people who have a bit of equity in their homes are realising that a little money can buy 10 acres in the bush," Mr Gay said.

"They see Clunes as not far from Daylesford, and because they can't afford to buy in Daylesford, they buy in Clunes."

However he could not speculate on the reason for Clunes' sudden pick up, but said the recent Book Town event in Clunes had helped, bringing thousands of people to the town.

"Three years ago Clunes was a bit of a ghost town; all of a sudden you've got cars here in the main street during the week, and it's not just the locals," Mr Gay said.

"Many have always travelled through but haven't stopped - now we have new shops and cafes, and they have a reason to come to town."