Yield Decoder: What Investors Really Want in Apartment Blocks
Simon Abbott is straightforward: yield expectations drive investor and syndicate buyers in Victoria’s apartment-block space. Here’s what “good yield” means—by the numbers—and how that impacts both price and buyer profile.
Current Yield Benchmarks (2026)
- Standard separate houses in prime Melbourne: often 3.5–4% gross yield
- Many blocks of units: 5–7% gross yield, sometimes higher regional or value-add
- Top-performing blocks (good location, stable tenancies, scale): 7%+, sometimes approaching 8% gross yield
Simon’s Investor Guidance
Most high-yield buyers are active in Melbourne middle-ring and regional centres. Tenancy strength, maintenance history, and rental mismatch create yield differentials.
Tip: Net yield after outgoings is what the pros examine—block buyers don’t just read the listing headline.
Case Study: Relocating to Blocks for Higher Yield
Simon switched a client investor group from three houses (netting a combined 4%) to a single 12-unit block that delivered nearly 7.2% net yield—even accounting for higher insurance and body corporate.
Buyer demand in 2026 is driven by numbers.
To see what yield your block could attract in the current market, ask Simon Abbott for a data-driven appraisal.
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