Our March Rental Market Review

03 April 2025

The rental market held firm throughout March, with strong demand continuing to outpace supply across many segments. Well-presented homes and accurately priced listings attracted multiple applications and leased quickly - often after just one or two inspections. Price sensitivity began to surface in some pockets, making strategic pricing more critical than ever. From family homes to furnished city apartments, renters are increasingly driven by value, lifestyle, and location, while owners are adapting to shifting trends.

Stonnington

Demand for quality rentals remained strong, especially for well-presented apartments and family homes. Popular areas like South Yarra, Malvern, and Armadale saw steady rental prices with slight increases. Low vacancy rates continued, particularly for accurately priced properties offered on 12+ month leases. Professional sharer groups dominate the market for larger homes, pooling resources before stepping into ownership. There has also been an increase in owners choosing to self-manage, likely driven by rising living costs. While rising costs may be a factor, we strongly recommend engaging a professional property manager - especially in today’s highly regulated environment. With compensation claims on the rise and increased scrutiny from bodies like the CAV Taskforce, non-compliance can prove far more costly in the long run.

Feature Property: G03/727 Malvern Road, Toorak – $3,000/week | 3 BED | 3 BATH | 3 CAR.

Boroondara

The Boroondara rental market was highly competitive throughout March, with strong demand driving quick lease turnarounds across all property types. Quality homes were in particularly short supply, with well-presented listings attracting multiple applications and leasing within days. Limited stock levels continued to put upward pressure on weekly rents, especially in sought-after suburbs like Surrey Hills.

Feature Property: 9A Benwerrin Road, Surrey Hills, which leased for $1,525 per week — a clear indication of the market’s strength and appetite for premium properties.

Port Phillip

The Port Phillip rental market held steady throughout March, with strong demand for quality homes driving fast leasing activity. Well-priced properties often secured renters after the first or second inspection, supported by solid foot traffic at open homes. Market hotspots included 3+ bedroom family homes in the $1,000–$2,000 per week range and 2-bedroom properties under $850 per week. Secure parking was a key priority for renters, influenced by rising concerns over car theft.

Feature Property: 386 Montague Street, Albert Park — leased in just 4 days for $1,450 per week.

Bayside

The Bayside rental market remained highly active throughout March, particularly for properties under $800 per week, which often leased within just seven days. Strong competition saw some homes attract five or more applications, highlighting the demand for affordable, well-presented rentals. In contrast, larger executive family homes were in shorter supply, creating limited options at the upper end of the market.

Feature Property: 102/420 New Street, Brighton — a fully furnished 1-bedroom apartment leased for $1,000 per week, reflecting the strength of the premium rental segment.

Mornington Peninsula

The Mornington Peninsula rental market proved to be strong throughout March, with the team successfully leasing well above the monthly average. Demand for quality homes in premier locations continued to outpace supply, particularly in highly sought-after areas. Stock remained tight as some owners are holding off listing until the school holidays or Easter, with a forecasted increase in availability expected post-Easter.

Feature Property: 14 Tyalla Grove, Mornington — a 4-bedroom, 2-bathroom home with 2-car parking, leased for $1,250 per week.

Manningham

The Manningham rental market in March showed signs of increased price sensitivity, with renters more cautious and value-driven in their search. This subtle shift made strategic pricing more important than ever, as accurately priced homes continued to lease quickly and efficiently. Properties that met market expectations saw strong interest, minimising vacancy periods.

Feature Property: 201/832 Doncaster Road, Doncaster — a 2-bedroom, 2-bathroom apartment with 1 car space, leased for $600 per week after just 11 days on market and the first inspection.

Balwyn

Demand within the Balwyn High School Zone continued to remain exceptionally strong throughout March, with two properties leased off-market, reinforcing the area’s continued appeal to families prioritising top-tier education. In contrast, medium to high-end homes located outside the zone saw a noticeable slowdown in enquiry and leasing activity. The market clearly reflected the value placed on school zoning.

Feature Property: 14 Highview Road, Balwyn North — a luxurious 5-bedroom, 5-bathroom, 4-car residence with a swimming pool, leased for $2,000 per week.

Projects

The projects division saw strong momentum in March, with a noticeable increase in enquiries for fully furnished one-bedroom apartments in Melbourne’s city area. However, demand trends leaned toward two-bedroom or larger residences, particularly unfurnished options. For high-end apartments, prospective renters showed a clear preference for spacious layouts over higher bedroom counts, reflecting lifestyle-driven priorities.

Feature Property: 1102/20 Queens Road, Melbourne, further highlighting the continued interest in premium inner-city living with flexibility in space and style.