As Melbourne moves into the cooler months, May's rental market activity revealed a clear divide between segments. Accurately priced, well-presented homes continued to generate strong competition, while premium stock in several areas required more considered positioning. Our Property Management team breaks down the key patterns across each region, from changing supply dynamics to evolving renter priorities.
Property ManagementProperty Management Market Review - May
Next ArticleProperty Management Market Review - May
01 June 2026
Stonnington
Leasing activity across Stonnington was steady through May, driven by professional couples, families and corporate relocations seeking homes in South Yarra, Armadale, Toorak, Malvern and Prahran. Properties that presented well and were priced accurately continued to lease within the first two weeks of the campaign launch. Renters are placing greater emphasis on outdoor space, home office flexibility, premium finishes and proximity to lifestyle amenities, schools and public transport. The apartment segment remains competitive, with enquiry levels varying significantly by presentation, floorplan functionality, and perceived value relative to comparable offerings, partly due to the limited availability of larger family residences. Relocation activity continues to generate consistent enquiries, particularly for executive homes within school catchments. Accurate pricing from day one remains critical, as renters are highly informed and actively comparing available listings.
Feature property: 1 Manning Road, Malvern East, leased for $1,775 per week.
Boroondara
May presented a mixed picture across Boroondara. Following a quieter period after the Easter holidays, enquiry levels have lifted around Hawthorn and Kew, particularly for smaller homes in well-connected locations where available stock remains limited. In Balwyn and surrounding pockets, an influx of mid-to-high-end listings created increased competition among rental providers, placing downward pressure on asking rents at the upper end. Properties priced under $1,000 per week continued to lease quickly when positioned realistically, reinforcing the importance of accurate pricing and strong presentation from the outset of each campaign.
Feature property: 187 Cotham Road, Kew, leased for $1,980 per week.
Bayside
Bayside delivered consistently through May, with well-presented, accurately priced homes leasing within days of hitting the market. Interest was particularly concentrated in the sub-$900 per week range, where listings attracted multiple applications and frequently secured a renter after the first inspection. At the upper end, family residences above $2,500 per week experienced softer conditions, with fewer overseas relocation clients contributing to longer campaign timeframes. For rental providers, the results reinforce that presentation, realistic positioning, and early momentum remain the key drivers of performance across the local market.
Feature property: 18 Exley Road, Hampton East, leased for $850 per week after the first inspection, with 25 groups through and 12 applications.
Port Phillip
Despite cooler weather and shorter days, leasing conditions across the City of Port Phillip remain firmly active. Interest in well-located family homes and apartments continued to outpace available listings, with most properties securing a renter after the first or second inspection, if not quietly off market. Our database of qualified applicants remained highly engaged, with strong interest concentrated among committed renters ready to act when the right home presents. Tight supply and sustained enquiries continued to support confident conditions across the area.
Feature property: 136 Clark Street, Port Melbourne, leased for $1,520 per week.
Mornington Peninsula
The Mornington Peninsula rental market maintained its strength through May, with tight availability across sought-after locations, including Mount Eliza, Frankston South, Mornington, and Mount Martha, continuing to support confident conditions. Enquiries from prospective renters have remained consistent heading into winter, a trend we attribute to a growing number of people choosing the Peninsula as their primary place of residence, including an increasing number along the southern coastline. With interest continuing to outweigh available homes, the market is holding on price, generating healthy application volumes, and recording shorter campaign timeframes for well-presented listings.
Feature property: 6 Austin Avenue, McCrae, leased for $1,600 per week, offering four bedrooms, three bathrooms, two car spaces.
Projects
The Projects segment experienced a slightly more subdued month compared to earlier in the year, particularly across the high-end apartment bracket. Upper-tier listings saw slower traction and longer decision-making periods, with many prospective renters less inclined to make major relocation commitments as winter approaches. In contrast, properties under the $800 per week mark continued to attract stronger enquiries and more consistent leasing outcomes. Well-presented one-bedroom and two-bedroom apartments remained the most sought-after product, especially when competitively positioned with practical layouts, good natural light and manageable overall living costs. Appetite from renters is still present, however, the market has become increasingly price-sensitive and selective at the upper end.
Feature property: 308/127 Cardigan Street, Carlton, leased for $770 per week.
For tailored advice on pricing, presentation or leasing strategy, our Property Management team is here to help. If you are considering leasing your property or looking for a more proactive management approach, we welcome the opportunity to discuss how we can support your investment.
