Partner and Manager of New Business Darren McMullin
“I am extremely optimistic with the predicted performance of the rental market for 2022 and beyond and see some wonderful opportunities for our clients and new investors, alike.”

Now that the new financial year has commenced, the Kay & Burton Property Management team wishes to share its market insights for 2022/23, specifically through the perspectives of the Executive and Corporate Fully Furnished departments.

From the very beginning of 2022, the Executive department has experienced an unprecedented demand for quality unfurnished houses and apartments in the Stonnington and Boroondara areas not seen for many years. This demand has directly contributed to the extraordinary results achieved for Property Management clients, with considerably stronger rental yields, driven by both domestic and international clientele. A recent example is a large family residence in Yarradale Road Toorak, which leased for $5500 per week in March; pre-Covid the weekly rental would have been in the vicinity of $3500-$4000, an increase of 37%.

With a predicted shortage of available suitable rental properties and a further increase in demand in the coming months, this trend is expected to gain momentum throughout the year. Melbourne rental vacancy rates currently continue to be low and will likely tighten even further. The Executive team has seen advertised properties lease much more quickly than in previous years and has transacted a higher volume of off-market properties without the need for marketing.

“I feel we are in the early stages of the Asian market returning to Melbourne for schooling, business opportunities or lifestyle choices and am expecting this segment of the market to have a substantial impact on the higher end rental properties in the second half of the year,” observes Partner and Manager of New Business and Corporate Leasing Darren McMullin. Furthermore, as a result of the property sales market cooling marginally and the recent interest rate rises, which are likely to continue, locals may decide that now is the appropriate time to renovate their primary place of residence. Clearly such a decision will require an interim residence for the uncertain duration of the renovation. McMullin and his team are also witnessing multi-nationals beginning to resume relocations of senior executives to the Victorian capital, again increasing the demand for high-end unfurnished properties. “I am extremely optimistic with the predicted performance of the rental market for 2022 and beyond and see some wonderful opportunities for our clients and new investors, alike.”

Contact the Kay & Burton Property Management team today to assist you in maximising the return on your investment for the upcoming financial year.


Debbie Davut, Fully Furnished and Corporate Leasing Manager.
“We are continuing to experience high demand for fully furnished properties on the city fringe, where furnished properties in buildings with amenities and walkability to shops and transportation are leasing very quickly and at noticeably higher rentals than during 2021.”

As with the high-end unfurnished rental property sector, the already great demand for fully furnished properties is increasing as the year has progressed. Relocation agents are busy planning to place clients arriving from overseas over the coming months and are often looking for multiple properties in advance. As Kay & Burton is renowned for overseeing superior properties in the most popular locations, the Corporate Fully Furnished department has been receiving considerable feedback regarding the current low availability.

Fully Furnished and Corporate Leasing Manager Debbie Davut sums up her observations as follows: “We are continuing to experience very high demand for quality fully furnished properties on the city fringe, notably South Yarra, St Kilda Road and East Melbourne, where furnished properties in buildings with amenities and good walkability to shops and transportation are leasing very quickly and at noticeably higher rentals than during 2021, in many cases a 10-20% increase.

It is also worth noting that the recent interest rate rises are not affecting the demand for fully furnished properties, as Debbie’s department at Kay & Burton caters to an interstate and overseas corporate market.

Davut shares the following general Property Management insights as well. First, properties are on the market for shorter periods than in 2021 due to an overall higher demand, with a large volume leasing off market. Second, there is a growing trend whereby many owners who previously leased and self-managed their properties via short-term platforms are now looking for the security and stability of a specialised agent to manage their properties on a long-term basis. Third, locals who are now capable of travelling to interstate/overseas properties are looking to lease their primary place of residence on a longer-term basis. Fourth, Kay & Burton is experiencing its lowest vacancy rate since pre COVID, currently sitting at a mere 3%. Finally, multinationals are renting properties on longer term rental agreements, often 12 months.

Contact the Kay & Burton Property Management team today to assist you in maximising the return on your investment for the upcoming financial year.

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