How to Find Off-Market Blocks of Units in Melbourne and Sydney
Blocks of units are the most sought-after investment asset in Australia for serious property investors — and the least likely to appear on realestate.com.au or Domain. Vendors selling multi-unit blocks typically prefer discreet, direct transactions that avoid the disruption of a public campaign, legal complications with tenants, and the cost of marketing to retail buyers who cannot finance a $2M to $8M asset.
Finding them requires a fundamentally different approach to finding a standard residential property.
Why Blocks of Units Rarely Appear on REA or Domain
- Tenants have legal rights regarding open inspections and disruption during a sale campaign
- Vendors often prefer to avoid triggering competing bids that inflate vendor expectations beyond market reality
- Buyers of blocks need commercial-grade finance and due diligence — retail listing sites attract the wrong buyer pool
- Many blocks are sold estate-to-estate, within investment syndicates, or via long-standing agent relationships
- Vendors often receive direct approaches from investors via mail, network or agent referral before ever listing
How to Find Off-Market Blocks of Units
1. Register With a Specialist Off-Market Portal
The Collings Off-Market Portal is built specifically for investors seeking blocks of units, multi-unit developments and investment-grade properties that are never publicly listed. Registered buyers receive direct notifications when matching properties become available — without competing against retail buyers on REA or Domain.
2. Build Relationships With Commercial and Investment-Specialist Agents
Agents who specialise in investment-grade property — particularly those with commercial and residential crossover experience in inner-ring suburbs — hold the majority of off-market block opportunities. Introduce yourself as a qualified buyer, specify your price range, preferred suburb and minimum unit count, and ask to be notified first.
3. Direct Mail and Letterbox Campaigns
Identify target streets in your preferred suburbs — particularly those with 1950s to 1980s walk-up apartment blocks in low-supply, high-demand areas — and run a targeted letterbox or direct mail campaign. Motivated vendors who have not yet engaged an agent will often respond to a direct, professional approach.
4. Commercial Property Agents and Business Brokers
Many blocks of units are transacted via commercial agents rather than residential agents, particularly when the vendor is a small developer, an estate, or a business entity. Check commercial property portals (CBRE, Colliers, Knight Frank, Ray White Commercial) in addition to residential portals.
5. Probate and Estate Sales
A significant proportion of multi-unit blocks are held by long-term private owners who acquired them in the 1950s to 1970s. Estate and probate sales are a consistent source of off-market blocks — often priced below market because executors prioritise speed over maximising price.
What GeeVee Looks For When Assessing a Block of Units
| Factor | What to Assess | Target |
|---|---|---|
| Gross rental yield | Total annual rent / purchase price | 5% minimum, 6%+ preferred |
| Vacancy rate (suburb) | SQM Research suburb vacancy | Below 2% |
| Unit mix | 1BR vs 2BR vs 3BR split | Mix of 1BR and 2BR for demand breadth |
| Building age and condition | Maintenance backlog, roof, plumbing, electrics | Post-1960, no major deferred maintenance |
| Zoning | Current and proposed zoning | Residential Zone 2 or higher for redevelopment optionality |
| Proximity to transport | Distance to nearest train station or tram | Within 600 metres |
| Tenant profile | Existing leases, bond status, arrears history | All leases current, no significant arrears |
Frequently Asked Questions
How much does a block of units cost in Melbourne?
Entry-level blocks of 4 to 6 units in Melbourne’s outer northern and western suburbs typically start at $1.8M to $3M. Inner-north Melbourne blocks (Northcote, Thornbury, Preston, Brunswick) typically range from $3M to $8M depending on unit count, condition and land size. Sydney inner-west blocks are generally 20 to 30% more expensive than comparable Melbourne stock.
Can I finance a block of units through a standard residential mortgage?
Up to 4 dwellings on one title is typically financeable through a residential lender. Above 4 dwellings on one title, most lenders require a commercial loan — which typically comes with higher rates, lower LVRs (60 to 70% maximum) and more rigorous serviceability assessment.
What due diligence is required for a block of units?
Standard due diligence for a block includes: building and pest inspection, strata inspection report (if applicable), review of all current leases and rental history, solicitor review of the Section 32 (VIC) or Contract for Sale (NSW), and a rental appraisal from a local property manager. For older buildings, an engineering report covering roof, plumbing and electrical is strongly recommended.
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
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