The woman, aged in her 50s, was renting the home in Marine Parade Avalon with her son and was found by police at 10:30am this morning.
Officers have said they received reports she had suffered injuries. It is now believed the woman was stabbed to death.
A man in his 20s, who was known to the woman, was arrested shortly after and a crime scene has been established.
Speaking to The Daily Telegraph, Ward said: 'My heart goes out to the family and all involved in this tragedy. It's heartbreaking news.'
Ward and her husband David Letts bought the rundown two-bedroom beach house last year for $1.6 million and have rented it out while living with his parents in Newport.
Letts has told The Daily Telegraph that he knew one of the woman's sons, as they had surfed together.
'She was such a sweet woman, it's just a tragedy,' he said.
This article originally appeared on New Idea.