Blocks of units in Ormond represent one of Melbourne’s most compelling multi-tenancy investment opportunities, combining a tightly held blue-chip suburb with growing unit demand and demonstrated rental resilience. This guide covers everything a serious investor needs to know about the Ormond unit block market heading into 2026.

What Exactly Are Blocks of Units in Ormond, and Why Do Investors Target Them?

A block of units is a single title (or strata-titled portfolio) comprising multiple self-contained dwellings on one land parcel. Ormond, located roughly 12 kilometres south-east of the Melbourne CBD, sits within the City of Glen Eira and draws investors because of its strong owner-occupier culture, excellent transport links via the Frankston line, and proximity to Glen Huntly Road retail and dining strips.

Investing in Ormond through a unit block rather than a single dwelling delivers several structural advantages:

• Diversified income: Multiple tenancies mean vacancy in one unit does not wipe out your entire rental cash flow.
• Scale efficiency: One purchase, one set of due diligence costs, and one conveyancing transaction secures multiple income-producing assets.
• Land leverage: Ormond’s zoning mix includes Neighbourhood Residential and General Residential zones, which can support future redevelopment or subdivision, adding a capital growth optionality layer that single apartments cannot offer.
• Depreciation benefits: Multiple dwellings generate multiple depreciation schedules, improving after-tax cash flow for Australian investors.

For investors already researching blocks of units for sale in Melbourne 2026, Ormond consistently appears on shortlists due to its low vacancy rates and demographic stability.

What Do the Numbers Say About the Ormond Property Market in 2026?

Understanding the data is the starting point for any disciplined investment decision. The figures below are sourced from DataVic and the REIV (via the Collings CRM brain) and from the ABS Census 2021.

Median Sale Prices (April to June 2025 Quarter)

• Median house price: $1,570,000 (quarter-on-quarter change: -20.9%; year-on-year change: -11.9%)
• Median unit price: $650,000 (quarter-on-quarter change: +9.7%; year-on-year change: +10.7%)

These two figures tell an important story. While Ormond house prices softened over the past 12 months, the unit segment moved in the opposite direction, recording 10.7% annual price growth. That divergence reflects a structural shift in buyer and renter demand: affordability constraints are pushing more households toward attached dwellings, and unit blocks sit directly in the path of that trend.

Demographic Snapshot (ABS Census 2021)

• Population: 8,328
• Median age: 37.0 years
• Median household income: $2,062 per week
• Median rent: $395 per week

A median household income of $2,062 per week (ABS Census 2021) places Ormond well above the national median, indicating a tenant base with genuine rental capacity. The median age of 37 points to a predominantly working-age population, a cohort that values proximity to employment corridors and urban amenity but may not yet be in a position to purchase. That combination drives sustained rental demand for well-located unit blocks.

What Does This Mean for Gross Yield?

With a median unit price of $650,000 and a median rent of $395 per week (ABS Census 2021), a back-of-envelope gross yield calculation sits at approximately 3.2% on a single unit basis. For a block of units where rents have been individually optimised and the purchase was secured below replacement cost, yields can improve materially. Investors should also review the broader rental yield data for Melbourne suburbs in 2026 to benchmark Ormond against comparable inner-south-east locations.

It is worth noting that SQM Research’s national vacancy data consistently shows Melbourne’s south-east corridor running at vacancy rates below 2%, which puts upward pressure on achievable rents, particularly for two-bedroom units in well-maintained blocks.

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

Acquiring a unit block is a materially different process from buying a single investment property. Investors should work through the following due diligence checklist before committing.

Zoning and Development Potential

Ormond’s residential zoning is not uniform. Parcels within the General Residential Zone (GRZ) permit a greater density of built form than those within the Neighbourhood Residential Zone (NRZ), which caps development at two dwellings per lot. Confirming the zoning on the specific parcel through Glen Eira Council is a mandatory early step. Development upside can add significant value to a block acquisition if the existing improvements are ageing and the land area is generous.

Building Condition and Capital Expenditure

Older walk-up blocks built during the 1960s and 1970s, which are common throughout Ormond, can carry deferred maintenance in roofing, plumbing, electrical switchboards, and balustrades. A pre-purchase building inspection across all dwellings, not just common areas, is essential. Buyers should model capital expenditure requirements over a five-year horizon and factor those costs into the acquisition price.

Tenancy Mix and Vacancy Risk

Review all existing lease agreements before exchange. Key data points include:

1. Current rent per unit versus market rent (identifying under-rented stock is an opportunity, not a red flag, if the leases are periodic).
2. Lease expiry dates to assess near-term vacancy exposure.
3. Bond lodgement records and any active VCAT matters.

Finance Structuring

Lender appetite for multi-tenancy residential properties varies. Some lenders apply a commercial lending lens once a block exceeds four units, which affects loan-to-value ratios and interest rate pricing. Engaging a broker experienced in investment property finance before inspecting is advisable, particularly if the block comprises five or more dwellings.

Strata versus Single Title

Many Ormond unit blocks remain on a single title, which simplifies the purchase transaction but limits exit strategies. Strata-titling a single-title block post-acquisition can unlock individual unit sale potential, though it requires a surveyor, Glen Eira Council approval, and Owners Corporation registration. The cost and timeline should be modelled as part of the investment thesis if strata-titling forms part of the exit plan.

For a broader perspective on how these considerations apply across Melbourne’s inner and middle-ring suburbs, the Blocks of Units investment and development opportunities hub maintained by Collings Real Estate provides suburb-by-suburb context.

How Does Collings Real Estate Help Investors Secure Blocks of Units in Ormond?

Collings Real Estate has managed and transacted investment property across Melbourne’s inner and middle-ring suburbs for decades. The team’s specific advantages for investors targeting Ormond unit blocks include the following.

Off-Market Access

A significant proportion of unit block transactions in established suburbs like Ormond never reach the public portals. Owners of ageing blocks often prefer a discreet sale to avoid tenant disruption or public price discovery. Collings maintains an active database of vendors and buyers specifically seeking multi-tenancy residential assets. Registering on the Collings off-market portal is the most direct way to be notified when an Ormond unit block becomes available before it is offered to the open market.

Rental Management at Scale

Acquiring a block of units creates immediate property management complexity. Collings’ property management division handles multi-tenancy blocks as a core service, including individual lease management, maintenance coordination across multiple dwellings, rent reviews benchmarked to current market data, and VCAT representation where required. This removes the operational burden that deters many potential buyers from the asset class.

Market Appraisal and Due Diligence Support

The Collings team provides current market appraisals on unit blocks across Glen Eira and surrounding municipalities. This is particularly valuable when assessing whether an asking price is justified by the existing tenancy income and the realistic upside from rent reviews or redevelopment.

To speak with the Collings investment team directly, contact the office at 03 9486 2000, email info@collings.com.au, or visit 230 Waterdale Road, Ivanhoe, VIC 3079.

Frequently Asked Questions About Blocks of Units in Ormond

What is the median unit price in Ormond?

According to DataVic and REIV data (via the Collings CRM brain), the median unit price in Ormond for the April to June 2025 quarter was $650,000, representing year-on-year growth of 10.7%.

What is the median rent in Ormond?

The ABS Census 2021 records a median rent of $395 per week in Ormond. Market rents for individual units in a well-maintained block may sit above this figure, particularly for recently renovated two-bedroom dwellings.

Are blocks of units in Ormond suitable for redevelopment?

Potentially, yes. Parcels within the General Residential Zone in Ormond permit greater density, making older unit blocks on larger land parcels viable candidates for medium-density redevelopment. Zoning must be confirmed with Glen Eira Council on a parcel-by-parcel basis before drawing any conclusions.

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

Registering on the Collings off-market portal at collings.com.au/portal is the most efficient method. Collings maintains direct relationships with owners of multi-tenancy residential assets across Ormond and the surrounding south-east corridor.

How does buying a block of units differ from buying a single investment property?

The key differences are scale, finance structuring, and management complexity. A block of units requires due diligence across multiple dwellings, may attract commercial lending terms if it comprises more than four units, and requires active management of multiple tenancy agreements. The trade-off is diversified income, stronger depreciation benefits, and greater land leverage for future development.

Ready to explore off-market unit blocks in Ormond? Contact Collings Real Estate on 03 9486 2000 or email info@collings.com.au to speak with an investment specialist. You can also register directly at collings.com.au/portal to receive off-market opportunities before they reach the public market.