Understanding rental market dynamics is crucial for Melbourne property sellers, as it influences investor activity and, consequently, demand for homes. As of December 2025, Melbourne’s rental market is experiencing tight conditions, with vacancy rates remaining low across many suburbs.
Currently in Melbourne, this competitive rental landscape means investors are actively seeking properties, particularly in the Eastern Suburbs – areas like Balwyn, Doncaster, and Ringwood – where strong school zones and family-friendly amenities are highly favoured. This increased investor interest can translate to greater demand for well-presented homes suitable for owner-occupation, potentially shortening time on market and influencing pricing. The typical property selling campaign in 2026 runs for 4-6 weeks, with buyers prioritising presentation, light, and renovation potential. Sellers should realise that preparing a property for sale – including styling (typically $2,000-$8,000) and professional photography ($500-$1,500) – is increasingly important to attract both owner-occupiers and investors. Fletchers’ experience shows that a well-executed marketing campaign ($3,000-$8,000) is vital to reach a broad pool of potential buyers, including those considering investment opportunities. Agent commission generally falls between 1.5-2.5% in Melbourne suburbs.
In 2026, the interplay between rental demand and buyer sentiment will continue to shape the Melbourne property market, particularly in the Eastern Suburbs.