Melbourne’s Inner North Property Market: Rental Trends & Investment Insights
The inner-north property market has entered a new phase, with shifting dynamics influencing investor activity and rental demand. While the investment market has slowed compared to earlier this year, some investors are still identifying opportunities in suburbs such as Coburg and Brunswick, where rental demand remains strong and capital growth potential is promising.
Market Enters a New Phase
Many investors are taking a cautious approach, but those actively buying are securing properties with strong rental yields and long-term growth potential. Single dwellings in Coburg continue to lease well due to high demand, while apartments in Brunswick are performing strongly, benefiting from the area’s proximity to the CBD—just 7 to 8 kilometres away—and its extensive amenities.
In the 12 months to August, Coburg’s median house price was $1.21 million, with an annual compound growth rate of 6.1 percent. Units had a median price of $546,250. Rental properties in the area saw houses leasing for $670 per week with a 3.1 percent yield, while units achieved $480 per week with a 4.9 percent yield.
Brunswick’s property prices over the past year ranged from a median of $1,266,500 for houses to $555,000 for units. In August, rental houses commanded $720 per week, reflecting a 3.2 percent yield, while units rented for $500 per week with a 5.1 percent yield.
Shortage of Rental Homes
A key challenge in the inner-north rental market is the shortage of available homes. Many recent investors have struggled with rising costs, including higher interest rates, compliance expenses, and land tax hikes, leading some to sell their properties rather than continue leasing them. This has significantly reduced the number of available rentals, increasing competition among tenants.
Previously, our agency listed an average of 25 properties online and leased 30 per month. In August, only 15 properties were listed, and 20 were leased—highlighting the tightening rental supply. While renter enquiries remain steady, attendance at open inspections has fluctuated, with many prospective tenants failing to follow through on applications.
For rental providers in a position to offer competitive pricing, the demand is evident. Properties advertised at lower rates attract strong interest, often bringing more than 15 groups to each open inspection.
Despite market challenges, Melbourne’s inner north remains a desirable location for renters and investors alike. With careful market positioning and strategic investment decisions, landlords can continue to secure solid rental returns while tenants seek homes in this highly sought-after area.