Australia’s apartment block market is heating up fast, with new data and a flurry of Sydney sales pointing to a powerful shift among long-term investors who are increasingly targeting entire buildings rather than individual units.
According to REA data around 194 blocks of units have sold nationwide in the past three months, including 83 in NSW and 20 in Sydney alone.
Remarkably, eight of those Sydney transactions were handled by Ray White Double Bay’s Melanie Lahoud and Breanna Skewes, underscoring the intensity of demand in the city’s tightly held pockets.
The momentum is being driven by a specific type of buyer: well-capitalised, long-horizon investors who are seeking not only resilient income streams but full strategic control of an asset – something they can’t achieve when purchasing single strata units.
Why buyers want entire buildings
Senior sales executive Melanie Lahoud said the recent increase in activity reflects buyer confidence in the long-term performance of whole residential blocks.
“We’re seeing incredibly strong, targeted demand for entire apartment blocks right now. Many of these buyers are long-term investors who recognise the enduring value of these assets – not just for income today, but as generational investments,” Melanie says.
Breanna Skewes, sales associate to Melanie, agreed the shift is structural, noting that the trend reflects a growing preference among investors for simplicity, control, and long-term security in their property portfolios.
“There’s a shift toward acquiring blocks in one line, where buyers can maintain full control over the asset rather than owning individual strata units across different buildings.
“That level of control, combined with underlying land value and long-term upside, is making these opportunities highly attractive,” Breanna said.
For many investors, this strategy is viewed as a safer bet than purchasing multiple units across different locations.
She explains that whole blocks deliver diversified rental streams within a single asset, fewer management complexities, and the ability to renovate, reconfigure or reposition without negotiating with other owners.
Tightly held stock drives competition
Despite the strong buyer interest, supply remains thin – particularly in blue-chip suburbs where many blocks have not changed hands for more than three decades.
“With limited stock available, competition is immediate when a quality block comes to market,” Melanie says.
She added that most vendors selling this year are doing so due to major life transitions rather than market pressures.
“Some are looking to retire or pass on wealth, while others are facing increasing capital works requirements.
“Importantly, this isn’t about a lack of confidence – vendors are recognising the strength of the current market and choosing to capitalise on it.”
Demand is also reshaping pricing dynamics across different block sizes, creating a market where both investor strategy and asset scale play a critical role in outcomes.
Smaller blocks are often highly sought after because they are easier to finance, quicker to manage, and appeal to a wider spectrum of buyers, from first-time block investors to seasoned property groups.
“Smaller blocks can achieve a premium compared to the combined value of individual units, largely because they’re accessible to a broader buyer pool,” Melanie says
However, she noted that larger blocks require more specialised buyers, often lowering the per-unit rate – but not dampening overall demand.
A trend is also emerging: once buyers secure one building, many immediately begin looking for their next. That sustained activity helped Melanie and Breanna transact eight blocks in four weeks alone.
Is this a safe investment? Indicators point to resilience
The combination of multiple income streams, land value underpinning, and control of the entire asset makes whole-block ownership one of the more resilient property strategies – particularly in high-demand urban markets like Sydney, where rental pressure remains intense.
Melanie expects conditions to tighten further.
“We anticipate it will become increasingly difficult to secure whole blocks in one line as stock tightens,” she says.
“From an investment perspective, apartment blocks remain compelling, often delivering stronger returns than a single residential dwelling while still offering land value and long-term upside.”
Recent Sydney Sales (Feb-Mar 2026)
- 1-9/93 Wentworth Street, Randwick – 9 units, $7m, yield 4.30%
- 1-6/3 Moore Street, Bondi – 6 units, $7m, yield 4.46%
- 1-4/10 Lancaster Road, Dover Heights – 4 units, $5.51m, yield 3.64%
- Inner South West (Undisclosed) – 44 units, $16.6m, yield 5.70%
- 1-8/12 Dartbrook Road, Auburn – 8 units, $4.9m, yield 5.97%