A block of units isn’t just real estate. It’s a rental income machine, a development canvas, or a land banking play—depending on who you are.
For investors, it’s multiple income streams from one acquisition. For developers, it’s the pathway to medium-density rezoning, subdivision, and major capital appreciation.
Collings specializes in sourcing off-market blocks of units across Melbourne. We understand the unique economics of multi-unit properties, the development potential invisible to casual buyers, and how to structure deals for maximum investor returns.
Why Investors Buy Blocks of Units
Yield stacking: A 5-unit block generating $850k/year in combined rental income on a $4.2M acquisition = 20.2% gross yield. Tenants pay down your debt while you build equity.
Diversified risk: If one unit is vacant, you still have rental income from four others. Bad tenant in one unit doesn’t affect collection from others.
Better financing: Banks prefer cash-flow-positive properties. Multi-unit blocks often qualify for better loan terms than single apartments.
Scalability: Fund managers and syndicators use blocks of units to raise capital and build property portfolios.
Off-market advantage: Most blocks of units trade privately. Collings accesses deals before they hit Domain, giving investors negotiation power and better pricing.
Why Developers Buy Blocks of Units
Development upside: A block purchased for $4.2M might be rezoned, subdivided, or developed into $6M+ in individual asset value. Development profit: $1M+.
Land banking: Hold a block while the suburb gentrifies and zoning evolves, then develop or sell at a premium.
Renovation + repositioning: Buy an aging block, modernize it, increase rents, then sell to investor or convert to strata titles for individual sale.
Melbourne’s Best Blocks of Units Markets
Inner-north (high yield + development):
- Northcote — 4.5–5.5% yield, mixed investor/development appeal
- Ivanhoe — 4–5% yield, family tenant base, development potential
- Fairfield — 5–6% yield, affordable entry, renovation upside
- Preston — 5–7% yield, emerging investor corridor, gentrifying
- Abbotsford — 5–6.5% yield, development plays, young professionals
- Richmond — 5–7% yield, premium rents, lifestyle appeal
Coastal & lifestyle (premium):
- St Kilda — 4–5% yield, beachside premium, international appeal
- Collingwood — 5–6% yield, gentrifying, young demographic
Evaluating Blocks of Units: Investor Perspective
1. Calculate Combined Gross Yield
Formula: (Total weekly rent × 52) ÷ Purchase price
Example (5-unit block, Northcote):
- Unit 1: $350/week
- Unit 2: $350/week
- Unit 3: $380/week
- Unit 4: $380/week
- Unit 5: $400/week
- Total: $1,860/week = $96,720/year
- Purchase price: $4.2M
- Gross yield: 2.3% (but read on for net yield analysis)
2. Account for the Portfolio Effect
Never evaluate a block by gross yield alone. Consider loan serviceability, net yield, equity buildup, and tax depreciation. This is why property investors buy blocks of units—the long-term equity and tax benefits outweigh short-term cash flow.
3. Analyze Tenant Mix & Stability
Questions to ask: What’s the current tenant demographic? Average lease length? Rent growth trajectory? Vacancy rate in the suburb?
4. Evaluate Body Corp & Outgoings
For converted buildings or apartment complexes, body corp is critical. Average body corp cost: $50–$150/unit/month.
Evaluating Blocks of Units: Developer Perspective
1. Identify Development Potential
Can this block be rezoned to higher density? Can it be subdivided into individual titles? Is there dual-occupancy potential? What’s the post-development value?
Collings works with local councils and planning specialists to identify hidden development potential in off-market blocks.
2. Calculate Development Economics
Example (5-unit block conversion to individual strata titles): Acquisition $4.2M + Subdivision & registration $100k + Renovation $200k = Total $4.5M. Post-development value: $4.75M–$5M. Gross profit: $250k–$500k.
3. Assess Holding Costs & Timeline
During development/repositioning: Mortgage interest $200k+/year, Body corp/rates $25k/year, Renovation $100k–$300k, Professional fees $50k–$150k. Total carrying cost: $400k–$700k/year.
Off-Market Blocks of Units: Why Collings
Most blocks of units are sourced privately, before hitting public listings. Vendors avoid disruption, reduced buyer pool attracts serious investors/developers, better negotiation, earlier access.
Collings specializes in sourcing off-market blocks of units across Melbourne. We have direct relationships with vendors, estate agents, and developers who bring opportunities to us before public marketing.
Our current focus:
- Investor-grade blocks with strong cash flow potential
- Development-play blocks with zoning/subdivision upside
- Renovation candidates with modernization potential
- Mixed-use blocks (commercial ground floor + residential units)
- Multi-unit buildings in high-yield suburbs (Northcote, Ivanhoe, Preston, Richmond)
Current Off-Market Block Inventory (Collings)
We currently maintain active off-market opportunities across Melbourne including:
- Inner-north blocks: Multi-unit buildings in Northcote, Preston, Brunswick, Abbotsford generating strong rental income
- Development-ready blocks: Properties with zoning/subdivision potential in growth suburbs
- Renovation plays: Aging blocks with modernization upside
- Mixed-use properties: Retail/commercial ground floors with residential units above
Start Exploring Blocks of Units in Melbourne
Access the Collings Off-Market Portal to browse current multi-unit opportunities with:
- Full yield analysis (gross yield, net yield, cash flow projections)
- Development potential assessment (zoning, subdivision feasibility, market value)
- Tenant profile data (demographics, lease length, rental demand)
- Direct offer functionality (make offers directly to sellers)
- Market intelligence (comparable sales, development trends, investor activity)
Don’t wait for blocks of units to hit Domain. Access off-market multi-unit opportunities from the moment they’re available.
Need Expert Advice?
Have questions about block of units investment strategy, development potential, Melbourne suburbs, or how to evaluate multi-unit properties? Contact our team or sign up for our off-market portal to explore properties you won’t find on realestate.com.au & Domain.
Collings is Melbourne’s specialist in off-market blocks of units. Whether you’re a yield-focused investor, developer, or syndicator, we help you find the right opportunity.
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