Should you break a block into separate strata titles before selling, or is it better to sell as one? Simon Abbott is often asked to weigh up the costs, timeframe and upside.
Strata Titling Explained
Strata titling is the process of converting an entire block (on a single title) into individual legal entities—units that can be sold separately. It unlocks the “retail” market, but comes with time, cost and risk.
Pros
- Potentially higher per-unit values—retail buyers pay more than investors.
- Larger buyer pool, including first-home buyers and owner-occupiers.
- Easier resale—future buyers not limited to whole block.
Cons
- Proces can take 6–18 months: planning, surveying, legal, council approvals.
- Fees: surveying, planning, legal, permits, OC setup—often $40k–$120k depending on block size.
- Some tenants may not cooperate (right to remain, first refusal, privacy).
- No guarantee you’ll recoup the spend—market can shift in the interim.
Simon’s Advice
- For metro blocks with strong owner-occupier potential, consider it if you have time and capital.
- For pure investor blocks or urgent sales, usually better to sell whole—yield buyers value simplicity and speed.
Example: Simon’s vendor estimated an extra $350k by titling a South Yarra block; by sale, $90k went to costs and $180k to titling time. Net: about $80k better off, but could have sold in weeks at market price.
Want a real-world cost/benefit forecast for your block?
Simon Abbott offers candid pre-sale strata advice—no obligation: collings.com.au/portal
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