While much of the property conversation in Melbourne focuses on houses and individual apartments, a quieter segment of the market has been steadily gaining momentum.
Entire blocks of units, typically 4, 6, 8 or more residences on a single title, are attracting renewed attention from investors.
What’s driving this shift?
Opportunity often hides in plain sight, and I have always said particularly within older assets.
Let’s break down what’s happening, and why.
Why Whole Blocks?
Blocks of units are inherently scarce. Unlike apartments in large developments, they are finite in supply and tightly held.
The appeal is simple, yet powerful:
- Multiple income streams under one title.
- Complete control of the asset (no Owners Corporation complexity). This level of control is extremely attractive.
- Value-add potential through renovation and repositioning
- Scarcity-driven demand
- Stronger yield predictability
In a market like Melbourne, where land underpins long-term value, whole blocks offer scale, stability and only upside
Many of these buildings were constructed between the 1960s and 1980s. They’re solid, well-located, but often outdated.
For buyers, that creates options:
- Refurbish, reposition and strata the entire block for resale at a premium.
- Hold long term and improve rental performance progressively
- Explore future development or planning.
Why Are Owners Choosing to Sell?
At the same time, we are seeing long-term holders choose to divest these assets and for good reason.
Many of these blocks were purchased decades ago and have delivered exceptional capital growth. But today’s environment is different.
Owners are navigating:
- Increased compliance and rental standards. For Landlords especially those who’ve held the property 20–40 years the compliance burden can feel overwhelming. It doesn’t only add cost but managerial effort. For owners who have held blocks for decades or inherited blocks, these demands can feel disproportionate to the return.
- Higher maintenance and building upgrade costs. Roof, plumbing, electrical & structural. Trades and materials have become significantly more expensive. What was once a management expense can now feel like a major project.
- Rising land tax and holding expenses. Particularly for owners managing without professional support. For some, numbers simply don’t stack up the way they once did.
- Portfolio simplification or retirement planning. Many are responding to broader investor sell-offs in Victoria, where pressures led Landlords to exit certain holdings. Others passing wealth to the next generation. Selling allows them to realise significant capital growth.
What This Means for Sellers
If you own a block of units, you may be sitting on:
- Significant underlying land value
- Untapped rental
- Repositioning or redevelopment potential
- Strong demand from well-capitalised buyers
However, these properties do not transact like standard residential homes.
They require:
- Targeted investor databases
- Sophisticated financial positioning
- Clear yield and zoning analysis
- Discreet, strategic marketing
When handled correctly, competition can be strong particularly for well-located assets with upside.
What This Means for Buyers
For investors, entire blocks represent:
- Scale in a single transaction
- Control over decision-making
- Ability to manufacture growth
- Long-term income diversification
But they also require rigorous due diligence:
- Building condition and capital works assessment
- Rental history and lease structures
- Zoning and planning overlays
- Compliance review
The buyers active in this space are typically experienced, analytical and patient. They understand that value is created through strategy not speculation.
Both buying and selling activity in this segment reflects confidence in Melbourne’s long-term fundamentals: migration growth, lifestyle appeal, infrastructure investment and ongoing housing supply constraints.
Our Experience in This Niche Market
Whole blocks transact differently to houses or individual apartments.
They demand:
- Premium investor networks
- Skilled negotiation
- Confidential campaign strategies
- Deep understanding of yield metrics, zoning and repositioning.
At Nicole Gervasi Property Group, we’ve built a reputation for connecting the right buyers with the right opportunities, often off-market, where discretion and alignment matter.
This segment is not about volume.
It’s about relationships and timing.
It’s about understanding both sides of the transaction equally well.
If you own a block and are considering your options or you’re looking to acquire one, we will welcome a confidential conversation.