Melbourne’s prestige rental market has remained resilient, with demand for high-quality homes in excess of $1500 per week holding firm. According to Debbie Davut, Partner of Kay & Burton, renters at this level prioritise quality above all else.
Partner, Fully Furnished & Corporate Leasing
“Spacious, well-appointed homes in blue-chip suburbs—often with three to four bedrooms, outdoor areas, and premium amenities—are leasing quickly when priced correctly,” she said. “Whether furnished or unfurnished, well-presented properties in the right locations are attracting strong interest and multiple applications.”
After a period of rapid growth in rental prices, Melbourne has entered a stabilisation period where increases are more measured. Despite this tempered phase, rents remain overall at record levels. Domain’s latest Rent Report shows Melbourne’s median asking rent for apartments has climbed 4.5 per cent over the past year to $575 per week, while house rents have held steady at a median $580. The gap between houses and apartments has narrowed to just $5 per week—the closest since 2012—driven largely by broader-market renters shifting towards units amid rising cost-of-living pressures. Melbourne’s rental vacancy rate is just 1.3 per cent—below the 3 per cent benchmark for a balanced market, leaving conditions firmly in favour of rental providers.
Kay & Burton’s median weekly rent for the 2024/25 financial year remained higher than the Melbourne average, reflecting the calibre of properties we represent, and the demand they attract. While the prestige segment leads the way, strong activity is also being observed in the sub-$850 per week range—particularly for one- and two-bedroom homes—which continue to lease quickly and attract multiple applications, both furnished and unfurnished.
Melbourne’s top-end strength is also clear in a global context. Knight Frank’s Prime Global Rental Index Q1 2025 ranked the city seventh in the world for luxury rental growth (top5 per cent of the market), with a 3.5 per cent annual rise and a 38.4 per cent increase since Q1 2021. Los Angeles led the rankings with a 7 per cent annual increase, followed by Hong Kong at 6.5 per cent, while Sydney placed 12th with 2.1 per cent growth.
Melbourne’s prestige segment has benefitted from supply constraints and growing demand from corporate relocations. “Spring and summer are when we see the bulk of global executives arrive in Melbourne,” Ms Davut noted. “Relocation agents often come to us first, confident in our ability to provide a curated selection of high-quality homes that suit their clients’ needs. This segment of the market provides rental providers an opportunity to lease their properties quickly, at strong rates, and often before the properties go to market.
We are fortunate to have access to renters who typically maintain homes to a high standard, and we can negotiate flexible terms to suit both parties,” Ms Davut explained.
Looking ahead, anticipated interest rate cuts are likely to boost investor confidence, bringing more properties to market and deepening the rental pool—a positive sign for renters and owners.
In compiling this article, Kay & Burton relied upon information supplied by several external sources. This article has been provided for general information only and has not been tailored to your personal circumstance. Although high standards have been used in the preparation of the information, analysis, views, and projections presented in this article, Kay & Burton does not owe a duty of care to any person in respect of the contents of this article and does not accept any responsibility or liability whatsoever for any loss or damage resulting from any use of, reliance on or reference to the contents of this article.