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M E L B O U R N E R

Q3 2026 DEMAND DRIVES THE MARKET

DEMAND DRIVES THE MARKET

Melbourne's rental market was competitive this quarter, with renters vying for a limited pool of quality properties. Wellpresented, appropriately priced properties leased quickly, while rising living costs kept affordability front of mind for renters and rental providers alike. Demand remained strong, with limited stock continuing to support rents. Renters were price-conscious; however, quality properties attracted strong enquiries and competition. Well-presented properties in established inner and middle-ring suburbs were highly sought after, particularly homes and apartments offering natural light, outdoor space, parking and convenient access to transport and amenities. Plentiful renter demand does not guarantee a premium rent for every property. Accurate pricing, polished presentation, up-to-date compliance and attentive property management are critical to achieving the best result.

ALL IMAGERY SHOWCASES PROJECTS DESIGNED BY DKO ARCHITECTURE ALL PHOTOGRAPHY BY PABLO VIEGA

PORTFOLIO PERFORMANCE SNAPSHOT Our portfolio delivered another impressive quarter despite a changing market. August was our busiest letting month on record, truly exceeding expectations. Quality properties attracted eager renters, while our approach to pricing, presentation, compliance and service protected results for rental providers. Quality over quantity guides every decision we make. Renters continued to prioritise presentation, natural light, outdoor space, parking, location and overall functionality. Energy efficiency and heating and cooling are also becoming increasingly relevant as renters become more conscious of ongoing living costs. Savvy and well-informed, they closely watched price adjustments across the market.

2026 AT A GLANCE:

3,000+

PROPERTIES UNDER MANAGEMENT

±110

HOMES LEASED EACH MONTH ACROSS THE NETWORK

±60

QUALITY MANAGEMENTS WELCOMED MONTHLY

$1,100

AVERAGE WEEKLY RENT ACROSS OUR PORTFOLIO

AVERAGE DAYS TO LEASE

These results reflect both continued renter demand and the value of professional, proactive property management.

MELBOURNE’S MARKET OUTLOOK

Broader Rental Market Statistics

Supply was constrained relative to demand this quarter, supporting rental values. However, affordability pressures are becoming more evident, with renters increasingly focused on value, quality and the overall cost of living. Compliance obligations, insurance, maintenance, land tax and other ownership costs are influencing investor decisions. Rental returns remain an important consideration, particularly as investors assess overall net returns rather than headline rent alone. Having the right agent managing the investment is key to its success. We are seeing greater scrutiny of costs and returns, with some rental providers reassessing whether to retain, upgrade or sell. Others are taking a longer-term approach, investing in their properties to stay competitive and protect rental returns. Some clients have undertaken renovations, from minor updates to major works, and seen a significant rise in value. There is an opportunity to maximise returns while demand is high, but this requires proactive management. Rental providers should review pricing, presentation, maintenance and upcoming compliance requirements before the traditionally busy summer leasing period.

Marshall White Statistics

Where Marshall White outperforms the broader market, the result reflects the quality of our portfolio, local market knowledge, polished presentation and proactive leasing strategy. Our focus is not simply to lease quickly, but to achieve the best sustainable outcome for the rental provider.

MARSHALL WHITE

MARKET

MEDIAN RENT PER WEEK

$1000

$600

AVERAGE DAYS ON MARKET

RECENTLY LEASED

28 RALSTON STREET SOUTH YARRA

2 MONASH AVENUE BALWYN

A3 B2 C2

A5 B4 C2

$2,200 per week

$1,600 per week

29 BAIRD STREET BRIGHTON EAST

107 RUSKIN STREET ELWOOD

A6 B3 C2

A5 B4 C2

$2,600 per week

$2,300 per week

4 BUTLER AVENUE MORNINGTON

302/376 ALBERT STREET EAST MELBOURNE

A4 B2 C2

A2 B2 C1

$1,700 per week

$1,595 per week

LATEST INSIGHTS LEASE RENEWAL: WHAT RENTAL PROVIDERS SHOULD CONSIDER

STAYING AHEAD OF COMPLIANCE

WHO COVERS WHAT? INSURANCE FOR OWNERS AND RENTERS

UNDERSTANDING ROUTINE RENTAL INSPECTIONS

WHAT MAKES A GREAT TENANCY?

PLANNING AHEAD FOR THE 2027 RENTAL STANDARDS CHANGES

LEGISLATIVE UPDATE

Legislative Update

New bond claim evidence and record-keeping requirements apply from 13 October 2026, alongside mandatory twoyearly gas and electrical safety checks. Acceptable evidence can include invoices, receipts, quotes and photographs, so agencies will need to review their vacate and bond claim processes ahead of the changes. Rental providers should check their compliance records, book in gas and electrical checks, tighten vacate and bond processes and assess each property against the phased minimum energy efficiency standards beginning 1 March 2027. These cover heating, cooling, hot water, showerheads, ceiling insulation and draughtproofing. It is a common misconception that the 2027 standards require every property to be upgraded immediately. In most cases, requirements are triggered by an event such as a new agreement, a conversion or an appliance failure. READ MORE

OUTLOOK

We expect Melbourne's rental market to remain competitive through Q4, with constrained supply supporting rents. Demand should remain strong, with quality stock continuing to attract competition, although accurate pricing will be increasingly important as renters become more value-conscious. We anticipate an increase in listings as the warmer months approach. Depending on sales market outcomes, we have also seen a shift in investors deciding to hold their properties and release them to the rental market. Rental providers should prioritise compliance, proactive maintenance, presentation and realistic pricing, making decisions that protect long-term returns rather than focusing solely on short-term savings. Successful investment increasingly depends on attentive management and protecting the quality of the asset. An experienced, knowledgeable team can help mitigate risk and guide each decision, so the investment is well placed for the season ahead and the years beyond.

CONNECT WITH OUR TEAM We invite you to speak with your local Marshall White Property Management team for advice tailored to your investment property.