How Are Blocks of Units Valued? Simon Abbott’s 2026 Investor Blueprint

Blocks of units are a specialist asset class. Valuing them demands a different toolkit—and Simon Abbott’s approach is based equally on cashflow, yield, break-up potential, and active buyer demand. Here’s how serious investors and agents value blocks of units in today’s Victorian market.

Key factors in valuing a block of units

• Gross rental income: What is the total annual rent from all units? Are there rental increases pending?
• Net yield: After all outgoings (rates, insurance, maintenance, body corp/owners corp fees), what is the real net return?
• Vacancy and lease profile: Are all units tenanted? When do leases expire? Are current rents at, above or below market?
• Title structure: Single-title or strata-titled? Break-up potential can add material value if reselling individually makes sense.
• Physical condition and capex required: Is the block well maintained or undercapitalised?
• Buyer pool: Larger blocks and high-yielding stock often attract SMSFs, syndicates or developers rather than mum-and-dad investors.

Simon’s practical valuation process

1. Review actual rents (not “potential”): Investors pay for income they can actually receive in year 1.
2. Outgoings analysis: Actuals for rates, insurance, water, management, maintenance.
3. Market comparison on yield: Simon uses recent sales of blocks with similar metrics; a 7% net yield in 2026 draws more demand than 4–5% gross.
4. Break-up or improvement analysis: What if units are sold individually in the future? Fees and complexity may outweigh gain.

Case snapshot

A block in Preston showed a 7.2% net yield and drew five offers from SMSF and buyer’s agent investors—contracts exchanged above reserve.

Get a specialist valuation

Generic online appraisals do not suit complex assets. Simon provides a line-by-line breakdown, including rent, yield, break-up, and buyer matching potential, across Victoria.

Request a block of units valuation from Simon Abbott