Melbourne

As of May 2026, Melbourne, Geelong, Mornington Peninsula have 10,298 active Airbnb and VRBO listings. This represents a 8% decrease from the previous year.

The average Airbnb or VRBO in Melbourne generates A$47K per year. High-performing properties earn A$87K/year, while low-performing properties earn A$17K/year. The substantial variance between the top and bottom tiers suggests that market returns are highly sensitive to property-specific operational execution rather than broad market trends.

Airbnb and VRBO can be profitable in Melbourne. Average annual revenue is A$47K with 49% occupancy. High-performing properties earn up to A$87K/year. The 49% occupancy rate alongside an 8% supply contraction indicates that while competition is thinning, remaining inventory faces significant pressure to capture market share.

The average occupancy rate for Airbnbs and VRBOs in Melbourne is 49%. This occupancy level, combined with an average nightly rate of A$255, results in a RevPAR (revenue per available room) of A$92 per day.

3-bedroom properties demonstrate the strongest performance in Melbourne, with annual revenue of A$70K. These properties balance operating costs and rental demand most effectively in the Melbourne market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Melbourne area. Melbourne: Moderate. Registration required, 7% levy on bookings, planning permits needed in some zones. Enforcement exists but inconsistent across councils. Geelong: Moderate. Registration mandatory, local council planning permits may apply. Growing enforcement but still developing compliance systems. Mornington Peninsula: Moderate. Registration required, strict planning overlays in coastal areas, 60-day unhosted caps in some zones. Enforcement increasing due to housing pressure. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Melbourne Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 8% year-over-year, while RevPAR has decreased 3%. This indicates balanced supply-demand dynamics. The synchronized movement of supply and revenue metrics suggests a market finding a new equilibrium where current demand levels are insufficient to drive growth despite reduced inventory.

Launch around September, 2-3 months before peak winter season (December peaks). This pre-peak timing lets you build reviews when competition is 4% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (August-May) when gaining traction is harder.

The most common amenities in Melbourne listings include: Kitchen (98%), Tv (96%), Air Conditioning (95%), Washing Machine (94%), Heating (82%). Amenities that boost revenue the most include Washing Machine, Pool, Hot Tub, with Washing Machine properties earning approximately 30% more (A$60K/year vs A$46K/year).

Monthly estimated revenue per listing in Melbourne over the last 12 months: May: A$2K, June: A$2K, July: A$3K, August: A$2K, September: A$2K, October: A$3K, November: A$3K, December: A$4K, January: A$4K, February: A$3K, March: A$4K, April: A$3K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Melbourne is A$255, up 10% year-over-year. By property size: 1-bedroom properties average A$174/night, 2-bedroom properties average A$263/night, 3-bedroom properties average A$398/night, 4+ bedroom properties average A$433/night. Rates peak in March and are lowest in May.

Guests in Melbourne book an average of 33 days in advance, down 9% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 35 days, 3-bedroom: 36 days, 4+ bedroom: 35 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Melbourne Airbnb and VRBO market has seen the following changes: supply declined 8%, revenue per listing decreased 3%, occupancy fell 3%, average nightly rates increased 10%, and lead time decreased 9%. The combination of higher rates and shorter lead times reveals a shift toward last-minute booking patterns despite overall softer demand.

In Melbourne, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Monday. Weekends show 25% higher occupancy than weekdays.