Advice for owners from Simon Abbott—Victoria’s blocks of units and development site authority.

1. The Land vs Income Equation

When land zoning, location, or existing improvements suggest development potential, valuation is never based solely on current rental return. Simon weighs land size, height/zone controls, possible unit yield, and “end value” after development.

2. Recent Planning Trends

In 2026, tighter planning and more tenant protections shape most development deals. Unencumbered sites (fewer or short-term leases) fetch premiums. Development-focussed buyers often discount existing rental income if the site can be cleared/repurposed within 12–24 months.

3. Risk Adjustment

Uncertainty for developers—rising construction costs, unclear timelines—means blocks without realistic development upside transact on yield, not “hoped-for” potential. Simon’s advice: bankable DA, minimal tenancy encumbrance = premium; the rest, price for investor fundamentals.

Scenario

Simon’s recent block sale in a DDO-zoned corridor saw three offers from developers, all factoring in cost-to-vacate, possible planning appeals, end sales risks, and alternative uses—resulting in a balanced price above investment-only value but well below blue-sky speculators’ hopes.

Conclusion

Valuing these blocks is part science, part judgment. For a detailed, scenario-specific appraisal of your block’s development value in the current market, request Simon Abbott’s input here.