--- title: "Malvern Unit Block Bonanza: $3.4M Opportunity for Developers" url: https://australianproperty.network/analysis/investment-strategies/property-development-value-add-strategy-analysis/malvern-unit-block-bonanza-3-4m-opportunity-for-developers/ date: 2025-08-07 modified: 2025-08-07 author: "APN News - Construction" description: "Malvern Unit Block Offers Value-Add Potential for Melbourne Property Professionals A 14-unit apartment complex in Malvern, Melbourne, is on the market for $3.4M-$3.74M, presenting a compelling opportunity for Australian property professionals seeking value-add investments. Located at 22 Finlayson St, the solid-brick building currently generates approximately $200,000 annually from 11 leases. Gross Waddell ICR suggests strategic renovations, estimated at $20,000 per unit for cosmetic upgrades, could boost rental income to $291,200. This listing reflects a growing trend: demand for properties with existing income streams and potential for increased returns through renovations. The 810 sqm site benefits from a \"bulletproof\" location near Glenferrie Rd, High St and Wattletree Rd, close to transport and schools. The upcoming Metro Tunnel services will further enhance connectivity. The property is priced at just under $270,000 per apartment, based on Malvern’s $2.5 million median house price. The current rent reflects a 5.5 per cent yield, excluding potential uplift from renovations. The sale highlights the need for skilled tradespeople and cost-effective renovation solutions. The property will go to auction at 12:00 p.m. on Thursday August 28." categories: - "Property Development & Value-Add Strategy Analysis" tags: - "apartment block" - "APN News" - "Building value-add investment" - "Danny Clark" - "Gross Waddell ICR" - "Investment Strategy" - "Malvern" - "Melbourne" - "Property development" - "Renovation" - "Rental yield" - "Strata Title" image: https://australianproperty.network/wp-content/uploads/2025/08/Unit-Bonanza-1024x558.webp word_count: 692 --- # Malvern Unit Block Bonanza: $3.4M Opportunity for Developers ## Malvern Unit Block Bonanza: $3.4M Opportunity for Developers A Melbourne apartment complex, featuring 14 one-bedroom units in Malvern, has been listed for sale with price expectations between $3.4 million and $3.74 million, presenting a potential value-add opportunity for property professionals. ### Investment and Renovation Potential The solid-brick building at 22 Finlayson St, Malvern, currently generates approximately $200,000 per year from 11 leases, according to realestate.com.au. However, Gross Waddell ICR director Danny Clark suggests that refurbishment and full leasing could increase the rental income to $291,200 annually. This potential for increased yield is attracting interest from investors, developers, and syndicates, who are considering rental uplift or a future strata selldown. Clark notes that buyers are increasingly seeking properties with the potential for improvement, rather than passive investments. The 810 square metre site offers scope for cosmetic upgrades to kitchens, bathrooms, and flooring. Clark estimates that light upgrades costing around $20,000 per unit could significantly boost rental returns without overcapitalising. ### Location and Market Dynamics The property's location in a tightly held pocket near Glenferrie Rd, High St and Wattletree Rd, close to Malvern and Caulfield train stations, multiple tram routes, and schools such as Lauriston Girls’ School, Caulfield Grammar, and Monash University Caulfield, is a key selling point. Clark believes the location is "bulletproof" and that upcoming Metro Tunnel services will further enhance connectivity. According to realestate.com.au, the complex is priced at just under $270,000 per apartment, based on Malvern’s $2.5 million median house price. The current rent reflects a 5.5 per cent yield, excluding potential uplift from renovations. Clark notes increased interest from both local and interstate buyers, with Melbourne presenting "exceptional value" from a national perspective. He also observes a return of local confidence and a shift in market sentiment. ### Building Trend: Value-Add Investment The listing highlights a growing trend in the Australian property market: the increasing demand for value-add investment opportunities. Property professionals are actively seeking assets with existing income streams and the potential for increased returns through strategic renovations and upgrades. This trend has several implications for the construction industry: - **Increased demand for renovation services:** As investors seek to improve existing properties, there will be a greater need for skilled tradespeople and construction companies specialising in renovations and refurbishments. - **Focus on cost-effective upgrades:** The emphasis on avoiding overcapitalisation means that property professionals will be looking for cost-effective renovation solutions that deliver maximum impact on rental yields. This could drive demand for innovative and affordable building materials and construction techniques. - **Importance of design and planning:** Successful value-add projects require careful design and planning to ensure that renovations are aligned with tenant preferences and market demands. Architects and designers who can create attractive and functional spaces within budget will be in high demand. - **Opportunity for sustainable upgrades:** Investors may also consider incorporating sustainable building practices into their renovation projects, such as installing energy-efficient appliances, improving insulation, and using eco-friendly materials. This can enhance the property's appeal to environmentally conscious tenants and reduce operating costs. The Malvern unit block presents an opportunity for property professionals to capitalise on the value-add investment trend by undertaking strategic renovations to increase rental yields and enhance the property's long-term value. According to realestate.com.au, the property will go to auction at 12:00 p.m. on Thursday August 28. This article is based on a report from [www.realestate.com.au](http://www.realestate.com.au) titled "$3.4m Malvern block with 14 units hits market". You can find the original article here: [https://www.realestate.com.au/news/34m-malvern-block-with-14-units-hits-market/](https://www.realestate.com.au/news/34m-malvern-block-with-14-units-hits-market/) **Suggested Research for The Masterful Fellow™:** Given the increasing demand for value-add properties, how can property professionals more accurately quantify and communicate the potential return on investment for cosmetic upgrades versus more extensive renovations in similar multi-unit complexes? #### Disclaimer The information contained in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. The Australian Property Network (APN) is not a licensed financial advisor. The content is based on data from third-party sources and is provided without any warranty as to its accuracy, currency, or completeness. Property values can go down as well as up. Before making any property or investment decisions, you should conduct your own research and consider seeking independent professional advice tailored to your specific circumstances.