Our May Rental Market Review

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The May Market Snapshot

03 June 2024

As we navigate the current rental market, it's essential to stay informed about the dynamics shaping the landscape across Marshall White's core property management areas. In this blog post, we provide insights into the rental market performance in Stonnington, Boroondara, Bayside, Port Phillip, Mornington Peninsula, and our Projects division. From the continued demand for well-maintained and competitively priced properties to the fluctuations in specific areas and the impact of the broader economic climate, we explore the key factors influencing the rental market and the opportunities for both renters and rental providers. 


Higher-end properties $1800+ per week are moving quite slowly due to the cost-of-living pressures and high expectations of renters, while well-maintained and well-priced stock under $800 is leasing within a week. May has seen an increase in lease breaks as renters seek more affordable options, opting to share accommodation or even purchase property. Homes with large secure garages have a major advantage, with renters considering areas outside their normal scope for this feature. Properties at similar price points without secure parking, security, or with unusual layouts are slower to rent, as renters prioritise desirable lifestyle amenities. 

Feature Property - 41 Ashburton Road, Glen Iris 

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Boroondara (Hawthorn Office) 

We are observing a decrease in the number of attendees at open for inspections. However, properties that are sensibly priced and well-presented are still leasing successfully. Current Trends: 

2 to 3-Bedroom Apartments: There has been strong activity in this segment, with apartments priced under $800 leasing well. 

Young Families: We are noticing an increase in young families entering the rental market, specifically seeking 3-bedroom homes priced around $1,000 per week. 

Overall, while the market presents some challenges, appropriately priced and well-maintained properties continue to perform strongly. 

Feature Property - 116 Peel St, Kew (leased at $2,100 per week after significant interest) 

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Boroondara (Balwyn Office) 

The Balwyn and surrounding markets have seen an increase in apartment and unit stock availability this month. This can be attributed to two main factors: investors leasing out their newly purchased properties and owners converting their properties to rentals following unsuccessful sales attempts. 

Feature Property – 1/9 Willcyrus Street, Surrey Hills 

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Overall, the rental market in Bayside remains dynamic, with a mix of steady demand and localised fluctuations. It continues to show signs of stability, with some variations in specific Bayside areas such as Brighton and Hampton. There has been a slight upward trend in certain neighbourhoods, particularly those closer to the waterfront or with easy access to amenities such as schools, parks, and transport. However, this increase has been relatively moderate, reflecting a balanced market where demand and supply are closely aligned.  

Feature Property - 17/3 Alexandra Ave, Elsternwick (leased for $650 per week after first inspection)  

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Port Phillip 

Properties under $1500 per week are still in strong demand and leasing quickly, particularly those within walking distance to the beach, amenities such as shopping villages, transport, and local schools. Enquiries on higher end/executive style properties or larger family homes have softened slightly. If these types of properties are not receiving positive attention or interest from prospective renters, it is important to take a proactive approach and consider adjusting the rental prices to gain traction. 

Feature Property - 20 Kerferd Place, Albert Park, leased after the first inspection for $1320 per week. 

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Mornington Peninsula  

Whilst Mount Eliza, Mornington, Mount Martha, and Frankston South continue to be highly sought-after locations for prospective renters seeking the lifestyle of living on the peninsula with an easy commute to the city, we have seen a slowdown in demand for the southern peninsula region. There have been a few requests for conjunctional sales/rental campaigns when properties are not gaining traction on the sales side. Modern family homes are still generating strong interest.  

Feature Property - 30 Beluga Street, Mount Eliza, which was recently leased at $1650 per week 

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There was a decrease in enquiries across various segments this past month. However, apartments located within sought-after school zones continue to generate interest among buyers, highlighting the appeal of properties that offer both convenience and access to quality education. 

In the current market, buyers are exhibiting heightened price sensitivity, particularly when comparing similarly priced properties. This increased focus on value for money is likely driven by broader economic factors and affordability concerns. As a result, properties priced under $700,000 are witnessing higher demand, as buyers seek to maximise their purchasing power and secure a home that fits within their budget constraints. 

Property Feature - 103/7 Cherry Road, Balwyn 

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The rental market across our core suburbs is navigating a period of change and adaptation. Opportunities exist for those who can effectively respond to the shifting preferences and needs of renters. By staying informed, proactive, and attuned to the unique dynamics of each suburb, we can continue to provide valuable guidance and support to our clients in this evolving landscape. Our property management team at Marshall White remains committed to delivering exceptional service and expertise, helping our clients make informed decisions and achieve their rental goals in the months to come.