Sydney Block Market Surges On Generational Investment Play

8 Blocks Sold in 4 Weeks by Melanie Lahoud

1-6/3 Moore Street, Bondi

A surge in investor demand for whole apartment blocks has seen leading agents Melanie Lahoud and Breanna Skewes of Ray White Double Bay successfully transact eight apartment blocks in just four weeks, highlighting renewed confidence and momentum in the Sydney investment market. The run of sales also reflects the re-emergence of tightly held stock, with several of the properties not offered for sale in more than 35 years.

Melanie Lahoud said the level of activity points to both the depth and urgency of current buyer demand. “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,” she said.

Breanna Skewes said a clear preference for whole-building acquisitions is intensifying competition. “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.”

1-9/93 Wentworth Street, Randwick

The current surge is being driven in part by a shortage of available stock, with well-capitalised buyers moving quickly when opportunities arise. “The most active buyers are long-term investors who are often less sensitive to broader economic conditions, including higher interest rates,” Ms Lahoud said. “With limited stock available, competition is immediate when a quality block comes to market.”

Several of the recently transacted properties had been tightly held for decades, with vendors choosing to sell in response to changing personal circumstances rather than any weakening in market conditions. “We’re seeing many long-term owners coming to market due to lifecycle changes,” Ms Lahoud said.

“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.”

Buyer competition is also shaping pricing dynamics, particularly among smaller assets. “Smaller blocks can achieve a premium compared to the combined value of individual units, largely because they’re accessible to a broader buyer pool,” Ms Lahoud said.

“As the size of the block increases, the buyer pool becomes more specialised, which can sometimes lead to a lower per-unit rate. Regardless, well-located and well-presented assets continue to see strong demand, and once buyers secure one building, many look to acquire additional assets, sustaining momentum.”

1-4/10 Lancaster Road, Dover Heights

Both agents expect current conditions to continue throughout 2026, with supply constraints likely to intensify. “We anticipate it will become increasingly difficult to secure whole blocks in one line as stock tightens,” Ms Lahoud said.

“For both investors and vendors, the key indicators to watch will be stock levels, buyer depth and rental growth, which are all underpinning confidence in this segment. 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 Sales Snapshot (Feb-Mar 2026)

1-9/93 Wentworth Street, Randwick
Block of 9 (6x2br, 3x1br), 9 parking
Sold: $7,000,000 | Yield: 4.30%
Campaign: Off-market (exclusive database)

1-6/3 Moore Street, Bondi
Block of 6x2br, 1 LUG
Sold: $7,000,000 | Yield: 4.46% | 25 enquiries
Result: Sold prior to auction

1-5/78 Alison Road, Randwick
Block of 5 (4x2br, 1x6br), 3 LUG
Sold: $5,800,000 | Yield: 3.61% | 26 enquiries
Result: Sold prior to auction

1-3/131 Johnston Street, Annandale
Block of 3 (1x1br, 1x2br, 1x3br)
Sold: $2,200,000 | Yield: 4.98% | 29 enquiries
Result: Sold at auction (4 bidders)

1-4/10 Lancaster Road, Dover Heights
Block of 4x2br, no parking
Sold: $5,510,000 | Yield: 3.64% | 29 enquiries
Result: Sold at auction (9 bidders)

Inner South West (Address Undisclosed)
Block of 44 apartments
Sold: $16,600,000 | Yield: 5.70%
Campaign: Off-market (exclusive database)

1-8/12 Dartbrook Road, Auburn
Block of 8x2br, 8 parking
Sold: $4,900,000 | Yield: 5.97%
Campaign: Off-market (exclusive database)

1-7/51B Blake Street, Dover Heights
Mixed-use: 3x3br + 2 shops, 6 parking
Sold: $16,500,000 | Yield: 3.92%
Campaign: Off-market (exclusive database)