Our July Rental Market Update

The July Market Snapshot

05 August 2024

As we move through the winter season and approach spring, the Melbourne metropolitan and Mornington Peninsula rental markets are showing varied patterns across different regions. This comprehensive update provides insights into the current state of the rental market, highlighting key observations and notable properties.

Stonnington

Stonnington's rental market remains tight, with a limited supply of new properties. Four-bedroom homes are showing mixed results, with updated properties leasing more quickly. Some owners are weighing the benefits of property improvements or price adjustments against potential vacancy periods as the market continues to favour well-presented homes.

Feature Property: 5 Grosvenor Court, Toorak

This luxury 6-bedroom, 5-bathroom home with 4 car spaces was recently leased for $5,500 per week.

Boroondara - Hawthorn Office

In Boroondara, correctly priced properties are leasing well, while overpriced rentals face longer vacancies. The market is picking up post-school holidays, with more stock becoming available. This aligns with slowly increasing vacancy rates, suggesting a more competitive environment for rental providers.

Feature Property: 1702/279 Wellington Parade South, East Melbourne

This high-end 4-bedroom, 3-bathroom apartment with 2 car spaces was leased for $2,000 per week.

Boroondara - Balwyn Office

The rental market in Balwyn experienced a slowdown during the first half of July, primarily due to the school holiday period. This lull is a typical seasonal trend we observe annually, as many families are often preoccupied with travel and other holiday activities. However, we are reporting a significant increase in rental enquiries and applications since last week. We anticipate this renewed interest to continue building momentum as we move further into the second half of the month and approach the busy spring rental season.

Feature property: 19 Lovell Street, Hawthorn East

Bayside

Stock levels have increased as more owners choose to invest rather than sell. While leasing was quieter in early July due to winter and school holidays, the market is showing signs of recovery. Premium properties continue to attract interest.

Feature Property: 16 Southey Street, Sandringham

This premium property was leased for $2,200 per week.

Port Phillip

The market is experiencing some softening, with fewer inspection attendees and some below asking offers for certain property segments. However, this is creating opportunities for renters and encouraging owners to ensure competitive pricing and optimal presentation, which could lead to quicker leasing outcomes for well-positioned properties.

Feature Property: 1/93A Alma Road, St Kilda East.

This property was recently leased for $1,800 per week, reflecting continued demand in the area.

Mornington

Post-holiday rental enquiries have increased significantly, particularly in sought-after Mornington and Mount Eliza. The far Southern Peninsula is gaining traction as spring approaches, with continued strong demand for new and renovated homes, indicating a strong market in desirable areas.

Feature Property: 39A Gleneagles Avenue, Mornington, leased for $1100 per week - 4 bedrooms, 3 bathrooms, 2 car spaces.

Manningham

The market remains productive, with high demand for rentals in Templestowe for both homes and apartments. High-end properties are attracting significant interest, suggesting a healthy appetite for quality rentals.

Feature Property: 6 Larnaca Court, Templestowe

This property was leased for $1,150 per week after the first inspection, highlighting high demand.

Projects

While sub-$400 per week properties are in high demand, there is a balanced market overall. Lower-end products are leasing quickly, and while higher-end properties may take longer, they are still attracting renters.

Feature Property: 211/649 Victoria Street, Abbotsford

This apartment was leased for $995 per week, demonstrating demand for quality properties in desirable locations.

Coming into the spring selling season, the rental market across Melbourne and the Mornington Peninsula shows signs of gradual recovery and adaptation. While some areas are experiencing softening and increased competition, others are maintaining strong demand, particularly for well-presented and competitively-priced properties. Investors and property owners should remain attentive to local market conditions and be prepared to adjust their strategies accordingly to navigate the evolving rental landscape.