Most in-demand rental subrubs in Melbourne?

Vacancy rates in Melbourne at the moment aren't ideal, however there are a few pockets that seem to be protected from the ups and downs of the market. Look for suburbs with a good culture of cafes, restaurants, bars, shops and easy access to the CBD through public transport and via roads. Statistics and data don't always reflect true demand – the rental market can change on a monthly basis so never rely on data alone.

My pick of in demand suburbs:
– Carlton: Because of its close proximity to the CBD and funky cafe lifestyle. The only properties that are hard to move here are small apartments (in the new developments), but in general there's a really healthy market and we've always leased the difficult ones in under a month.
– Brunswick/Brunswick East: 2 to 3 bedroom townhouses tend to 'fly off the shelves'. The Brunswick area has become very on trend and in demand over the last 4-5 years.
– Northcote: A little further out but well worth it. Again a very trendy suburb, we've seen the kinds of open for inspections where we've had lines of tenants out to the curb – most popular property type is 3 bedroom houses.

My pick of suburbs to tread with caution:
– Southbank: over the next few years to 2015 there are multiple developments settling which is likely to create a higher vacancy. If you're looking to buy an apartment, look for a property in a low-rise building with plenty of services and a bit of 'WOW' factor.
– Maribyrnong: I really feel for a few owners who bought high with developers predicting a boom suburb. Tenants see this suburb as a real 'bang for your buck', I've watched a few properties sit on the market for 8-10 weeks of late.
– Coburg: in particular the Pentridge development. It hasn't taken off as yet in terms of demand and is dragging down the suburb. If you're looking long term growth it's achievable, but vacancy periods right now are atrocious.

If you have a particular suburb you've been researching I'd be happy to share some insight, we've got properties all over Melbourne from Maribyrnong to Frankston and all in between…

Kristin, do you have any feedback on Hampton in the Bayside ?

That seems to stack up with what I expected. Prahran is an excellent suburb, I have spent a lot of time there and it reminds me of Greenwich Village NYC in a big way where I have also lived.

My rental is probably middle range, its a three bedder two storey and is currently rented at $900pw and due for renewal in December. Walking distance to the beach, high street, train station and state and private schools. I bought it when I moved there to live in 09 as it had the village scene and it was only 20mins drive to my office on St Kilda Rd if I left at 6.40am. I will see what the PM reckons when it comes to rent review but I will not be to aggressive given that they are a low maintenance so far.

Hi Suzbats.. 2 bedroom is the way to go in elwood st kilda…easy to rent low maintenance

Plus with 2 bedrooms its easy to get investment loan..good luck

Hi Suzbats,

Sorry for the delay have had a long overdue holiday for a week!

St Kilda – depends on the location and proximity to the shoreline. We've got our properties already tenanted in the area but chatting to other agents its seems it's been quite difficult to lease in the area of late, which is following the Melbourne trend at the moment.

Elwood, St Kilda, St Kilda West you'll find tenants who stay in the area – much like Port Melbourne – the majority of residents will move down the road rather than to another suburb. If you're looking to buy definitely go with a 2 bedder if you can afford it. Yes, finance companies seem to buck away from 1 bedroom apartments and don't bother if it's 50sqm or under as you'll struggle to get finance.

Ideally look for something in a boutique low rise block – you want to find something with a bit of exclusivity both for rental and for re-sale value. You want a property that a tenant will look at and say 'WOW I want it, I'll pay' because rents aren't as good as they were 12 months ago. Some St Kilda road properties (apartments in high rise buildings) I've been watching have had the agents offering periods of free rent, movie tickets and all manner of incentives to prospective tenants. So as I say, go for exclusivity – something different or with wow factor.

It's a buyer's market, however I rarely (if ever) see cash flow positive properties in these areas unless you put in some serious TLC to an older property for very little cost or find a 'fire sale' – something the vendor is desperate to sell for under market value.

Kristen – you are such a wealth of knowledge!
What a breath of fresh air!
I would agree on the data and statistics- you can look at the numbers but it does not give you the feel or the “vibe” as Michael Caton said in “The Castle”.
I keep saying here – you get soooo much more from walking around that you cant get from google or from magazines.

I did hear someone say that there are properties in mining towns that you can buy in teh $400k’s and rent for $1800pw…
Are you just looking at Victoria Suzbats?