Blocks of units in Donvale represent one of Melbourne’s east’s more compelling multi-tenancy investment opportunities, combining a tightly held residential market, strong household income demographics, and rising unit values into a package that suits both seasoned and first-time multi-dwelling investors. Donvale sits in the City of Manningham, roughly 20 kilometres east of the Melbourne CBD, and its character as a leafy, owner-occupier-dominated suburb means income-producing unit blocks rarely reach public listing portals — making early access and specialist guidance essential.

What Is the Short Answer on Blocks of Units in Donvale?

Donvale is a premium eastern-suburbs suburb where blocks of units trade infrequently but attract strong investor interest whenever they do appear. The suburb’s high household incomes, mature demographic profile, and historically low vacancy rates create reliable rental demand. Unit values have surged recently — the median unit price reached $870,000 in the April-to-June 2025 quarter, up 22.5% year-on-year, according to DataVic/REIV data compiled in the Collings CRM dataset. That kind of capital growth, combined with a tightly supplied rental market, is precisely why investors hunting unit blocks in Melbourne keep a close eye on Donvale.

Because multi-dwelling properties in Donvale are rarely advertised publicly, most transactions occur off-market or through agencies with deep local networks. If you are serious about investing in Donvale, registering for off-market alerts is one of the most effective first steps you can take.

What Do the Numbers Say About Donvale Property in 2025-2026?

Data tells a clear story about why Donvale property attracts multi-dwelling investors. The figures below are drawn from DataVic/REIV data (via the Collings CRM dataset) and the ABS Census 2021.

Median Sale Prices

• Median house price: $1,520,000 (April-June 2025 quarter; quarter-on-quarter change: -7.1%; year-on-year change: +4.5%)
• Median unit price: $870,000 (April-June 2025 quarter; quarter-on-quarter change: +2.4%; year-on-year change: +22.5%)

The contrast between house and unit price movements is instructive. While house prices softened slightly quarter-on-quarter, unit prices held firm and delivered exceptional annual growth. For an investor acquiring a block of units, this trajectory suggests the underlying asset is appreciating strongly even as individual house values moderate — a positive indicator for long-term capital growth.

Demographics and Rental Market

ABS Census 2021 records the following for Donvale:

• Population: 12,644
• Median age: 45.0 years
• Median household income: $2,100 per week
• Median rent: $450 per week

A median household income of $2,100 per week places Donvale well above the broader Melbourne median and signals a tenant cohort with genuine financial capacity. Renters in this suburb tend to be professionals, downsizers, or families in transition — demographics that value well-maintained, well-located accommodation and typically generate lower vacancy and arrears rates than lower-income catchments.

With a median rent of $450 per week per dwelling (ABS Census 2021), a block of, say, four units could generate approximately $1,800 per week in gross rental income under current Census benchmarks, though market rents have moved materially since 2021 and current achievable rents should be confirmed with a local property manager. According to SQM Research, Melbourne’s eastern suburban vacancy rates have remained below 2% through much of 2024 and 2025, reinforcing the rental demand case for well-located unit blocks.

Why Unit Blocks Outperform Single Dwellings for Investors

Owning multiple tenancies on a single title delivers several structural advantages over single-dwelling investment:

1. Income diversification: A vacancy in one unit does not eliminate your entire rental income stream.
2. Scale economies: Maintenance, property management, and insurance costs spread across multiple tenancies reduce cost-per-unit overhead.
3. Land content: Larger allotments in Donvale may carry development upside under Manningham Planning Scheme provisions, subject to a planning assessment.
4. Financing leverage: Lenders often view multi-tenancy assets favourably given diversified rental income, which can support stronger borrowing positions.

For a broader picture of how these advantages play out across Melbourne’s inner and middle-ring suburbs, the Collings blocks of units investment hub covers the full spectrum of multi-dwelling opportunities across the city.

What Are the Key Considerations When Buying a Block of Units in Donvale?

Purchasing a multi-tenancy property is materially more complex than buying a single dwelling. Investors should address the following before committing to a Donvale unit block.

Zoning and Planning Overlay

Donvale falls within the City of Manningham. Residential zoning in the area is predominantly General Residential Zone (GRZ) and Neighbourhood Residential Zone (NRZ). NRZ land carries a mandatory maximum of two dwellings per lot, which limits subdivision and development potential. GRZ land is more permissive. Before bidding, commission a planning report to confirm the zone applicable to the specific site, any overlays (such as Significant Landscape Overlay, which applies in parts of Donvale), and any heritage considerations.

Strata versus Company Title versus Torrens

Older Donvale unit blocks are often held under company title or stratum title rather than individual Torrens titles. The title structure affects your ability to sell individual units, your financing options, and the governance arrangements for common areas. Have your solicitor assess the title structure during due diligence.

Building Condition and Capital Expenditure

Many blocks of units in established suburbs like Donvale were built in the 1960s through 1980s. A pre-purchase building and pest inspection, combined with an assessment of roof, plumbing, and electrical systems, is non-negotiable. Budget for a realistic capital expenditure schedule — deferred maintenance compounds quickly across multiple tenancies.

Rental Income Verification

Request current lease agreements, rental ledgers, and vacancy history for at least 24 months. Understand whether any tenancies are at-market or below-market rents, as this affects both your immediate yield and your ability to reposition the asset. CoreLogic data indicates that Donvale’s rental market has tightened significantly since 2022, meaning legacy below-market leases may represent upside once renewed.

Financing a Multi-Tenancy Asset

Lending policy for blocks of units can differ substantially from single-dwelling residential lending. Lenders typically assess the number of units, the title structure, and the location. Some lenders cap loan-to-value ratios at lower levels for blocks containing six or more units, or for properties in lower-density zones. Engage a mortgage broker with demonstrated experience in commercial and multi-tenancy residential lending early in your search.

If you want to compare how Donvale’s investment fundamentals stack up against other high-performing Melbourne suburbs, the Collings guide to rental yield across Melbourne suburbs in 2026 provides a useful benchmark.

How Does Collings Real Estate Help Investors Find Unit Blocks in Donvale?

Collings Real Estate has specialised in multi-dwelling investment sales across Melbourne’s inner and middle-ring eastern suburbs for decades. Our approach to blocks of units in Donvale and surrounding suburbs is built around three core capabilities.

Off-Market Access

The overwhelming majority of unit blocks in tightly held suburbs like Donvale never appear on public portals. Vendors in this market are typically long-term owners who prefer a discreet, private sale process. Collings maintains an active network of owners considering an exit, and we match those opportunities to registered buyers before any public campaign is launched. Register at our off-market buyer portal to receive alerts when Donvale unit blocks become available.

Independent Appraisal and Due Diligence Support

Our team provides honest, data-supported appraisals of any unit block opportunity — drawing on our CRM dataset, current comparable sales, and rental market intelligence. We can help you stress-test rental income assumptions, identify capital expenditure risk, and assess the realistic development upside of a given site under current planning controls.

End-to-End Transaction Management

From initial buyer briefing through to settlement, Collings coordinates the process across all parties — vendors, solicitors, financiers, building inspectors, and property managers. Our goal is to ensure investors acquire the right asset at the right price, with no unpleasant post-settlement surprises.

To explore the full range of multi-dwelling listings and opportunities Collings currently has available across Melbourne, visit our comprehensive blocks of units investment property guide.

Contact Collings Real Estate

Ready to discuss your Donvale investment strategy? Reach our team directly:

• Phone: 03 9486 2000
• Email: info@collings.com.au
• Office: 230 Waterdale Road, Ivanhoe, VIC 3079

Or enquire about off-market unit blocks through our buyer portal for priority access to properties before they reach the open market.

Frequently Asked Questions About Blocks of Units in Donvale

What is the median unit price in Donvale?

According to DataVic/REIV data (via the Collings CRM dataset), the median unit price in Donvale was $870,000 in the April-to-June 2025 quarter, representing year-on-year growth of 22.5%.

What is the median rent in Donvale?

ABS Census 2021 recorded a median rent of $450 per week in Donvale. Current market rents have likely moved since 2021; a Collings property manager can provide an updated rental appraisal for any specific dwelling type.

Are blocks of units in Donvale good investments?

Donvale’s high median household income ($2,100 per week, ABS Census 2021), strong unit price growth (22.5% year-on-year to June 2025), and low vacancy environment make it a fundamentally sound location for multi-tenancy investment. As with any asset, due diligence on zoning, building condition, and lease terms is essential.

How do I find off-market unit blocks in Donvale?

Most unit blocks in Donvale are sold off-market. The most effective approach is to register with a specialist agency like Collings Real Estate and join their buyer portal at collings.com.au/portal to receive priority alerts.

What planning zone applies to most of Donvale?

Most of Donvale is zoned either General Residential Zone (GRZ) or Neighbourhood Residential Zone (NRZ) under the Manningham Planning Scheme. NRZ land is limited to a maximum of two dwellings per lot. A site-specific planning report is recommended before purchase.

Donvale’s combination of rising unit values, high-income tenants, and limited supply of income-producing multi-dwelling properties makes it a genuinely compelling target for patient, well-informed investors. Whether you are seeking an established income asset or a block with longer-term development potential, the key is access — and that is exactly where Collings Real Estate’s off-market network delivers the edge.