Standing Out in Melbourne's Competitive Rental Market
Melbourne’s rental market has never been more competitive for renters and rental providers alike.
The city’s median house and apartment rental prices are at a record $600 per week, Domain’s June Rent Report shows. Against this backdrop, renters have become more discerning, and lifestyle, practicality and functionality are key to their decision making.
Leasing specialists say these features separate an average rental from an exceptional one that rewards the rental provider with quality renters, shorter vacancy periods and higher returns.
Domain’s report How We Rent: Australia’s Lifestyle‑Driven Suburbs in 2026 shows renters want properties with access to a pool and gym, close to nature, recreation and essential services. “Lifestyle is now a deciding factor – not a bonus,” the report says.
One residential lifestyle trend gaining momentum is wellness, says Taylah Cagalj, RT Edgar’s Business Development and Leasing Manager. “I think in the next couple of years we'll start to see more people wanting saunas,” she says. “We're already seeing a lot more people asking if there's a sauna available in the property or wanting space to bring their own.”
Cagalj says renters’ priorities have changed. They are increasingly selective and won’t apply for properties that don’t cover the basics or offer easy living.
“People are wanting to spend more time at home, so it’s essential that the living areas and kitchens are in really good condition or renovated, with a dishwasher and bench space, enough space for couch and dining table, all of the bedrooms have built-in robes, and there’s additional storage for luggage and linen,” she says.
“Another big one is natural light - ever since COVID that's been a box ticked on a lot of applications.”
Cagalj says rentals asking $650 to $900 per week is the largest part of the market, and generates the strongest competition among renters.
Prestige properties, commanding $900 or more per week, become scarcer as the price climbs. At this level, renters expect premium finishes, designer kitchens and bathrooms, large entertaining areas with pools and tennis courts, secure garaging, smart technology and privacy. "If homes meet any of those expectations, they tend to lease really well,” Cagalj says.
Rowan Bustin, Director of RT Edgar Glen Eira, says the most sought-after rentals have two qualities. “An excellent location is number one, and second would be turnkey finishes, which is a phrase we also use in sales,” Bustin says. “That’s a property that's move-in ready - it’s clean, modern and well-presented.”
Bustin says apartments in vibrant inner-city suburbs, in walking distance to bars, restaurants and public transport, rarely sit empty. New build-to-rent apartments in these neighbourhoods are proving especially popular.
"We've got a block of 50 apartments in Prahran and that particular project is never vacant,” Bustin says. “When one comes up it is leased instantly, and that's purely because of amenity and accessibility to Windsor and South Yarra.”
With state and federal-level policy changes impacting investors, Bustin says experienced property managers are crucial, and do more than manage the renters. They are best equipped to advise rental providers on positioning their property in the competitive market, and which renovations or upgrades will increase the rental price.
"We're trying, where appropriate, to encourage owners to consider modern updates, because that's where the value is,” Bustin says.