Many landlords had listed their rental properties for sale, with several purchased by owner-occupiers. However, more investors are now returning to the market, including younger first-time buyers and experienced investors expanding their portfolios. Three- and four-bedroom homes remain particularly popular among buyers in the region.

Strong Rental Demand and Steady Returns

Rental demand remains robust, especially in well-connected suburbs like Croydon, where proximity to train stations, shopping centres, and schools makes properties highly desirable. A healthy supply of properties for sale means investors have more choice when entering the market.

Rents have continued to rise, with some homes increasing from $500 to $550–$600 per week. Notable recent leases include 80 Evans Drive, Croydon, rented for $1,150 per week, and 16 Gladesville Drive, Kilsyth, at $580 per week. On average, rental listings receive 15 applications, and there has been an increase in supply of more affordable $500-per-week properties.

Market Stabilisation and Lower Tenant Turnover

The rental market in the outer east has become more balanced. While rents surged earlier in the year due to low supply, demand has since softened as renters choose to stay put. Rising relocation costs and limited availability mean tenants are moving less frequently, except when landlords sell.

In Croydon, the median house rent reached $590 per week in the year to August, reflecting a 13.5% annual increase (realestate.com.au). Despite strong demand—nearly 1,400 renter enquiries per month—supply remains tight, with only around 43 houses available for lease at any given time.

Rental properties in this region continue to turn over quickly, with monthly rental listings ranging from just 10 to 20 properties across key suburbs like Croydon, Kilsyth, Ringwood, and the Yarra Valley.