Airbnb Market Analytics, Statistics and Data in Melbourne, Victoria, Australia
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Melbourne? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Melbourne:
How much do Airbnb hosts make on average per month in Melbourne?
The short-term rental market in Melbourne shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,394 per month
- Strong performing properties (top 25%) make $3,861 or more
- Best-in-class properties (top 10%) achieve $5,945+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,205
Revenue Variations by Month
Occupancy Rates Throughout the Year in Melbourne
The market in Melbourne shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 48% occupancy rates
- Strong performing properties (top 25%) achieve 74% or higher
- Best-in-class properties (top 10%) reach 88%+occupancy
- Entry-level properties (bottom 25%) average around 23%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Melbourne
Daily rates in Melbourne vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $142 per night
- Strong performing properties (top 25%) secure $236 or more
- Best-in-class properties (top 10%) pull in $404+ per night
- Entry-level properties (bottom 25%) earn around $89
Daily Rate Variations by Month
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Seasonality patterns in Melbourne
Peak Season (January, December, March)
- Revenue peaks at $3603.15 per month
- Occupancy rates reach 53.94%
- Daily rates average $237.55
Shoulder Season
- Revenue averages $3036.23 per month
- Occupancy maintains 48.57%
- Daily rates hold at $203.44
Low Season (September, July, August)
- Revenue drops to $2359.07 per month
- Occupancy decreases to 40.82%
- Daily rates adjust to $190.10
Is it still profitable to do Airbnb in Melbourne in 2025?
Yes! Melbourne demonstrates moderate seasonality with good off-peak opportunities, featuring a healthy occupancy rate of 49% and strong monthly revenue averaging $3036 and As a mature market with 17588 active listings, there's strong demand despite the competition. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (families on vacation, festival goers, adventure tourists, international visitors)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Melbourne
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Fitzroy | Trendy and eclectic neighborhood known for its artistic vibe, boutique shops, and vibrant nightlife. Popular among young travelers and creatives. | Brunswick Street, Smith Street, Fitzroy Gardens, Melbourne Museum, Art galleries and street art |
| South Yarra | Upscale neighborhood with a mix of luxury shopping, dining, and proximity to the CBD. Attracts affluent travelers and those seeking a sophisticated experience. | Toorak Road, Chapel Street, Royal Botanic Gardens, Como House, Yarra River walks |
| St Kilda | Famous for its beaches, nightlife, and relaxed atmosphere. A favorite among tourists for its beach culture and festivals. | St Kilda Beach, Luna Park, Acland Street cake shops, St Kilda Pier, Albert Park |
| Carlton | Home to iconic Melbourne institutions, this area has a rich cultural heritage and is known for its Italian community and restaurants. | Lygon Street, Carlton Gardens, Melbourne Zoo, Royal Exhibition Building, Universities |
| Docklands | Waterfront suburb with modern apartments and attractions, ideal for business travelers and those looking for a contemporary setting. | Melbourne Star Observation Wheel, Docklands Stadium, Harbour Town Shopping Centre, Waterfront restaurants, Victoria Harbour |
| Richmond | Well-known for its sports culture and vibrant food scene, Richmond attracts both locals and visitors for its diverse dining options and events. | Melbourne Cricket Ground, Victoria Street, Yarra River bike trails, Richmond Park, Restaurants and pubs |
| CBD (Central Business District) | The heart of Melbourne, filled with shopping, dining, and cultural attractions. Ideal for tourists looking to experience the city. | Federation Square, Queen Victoria Market, Melbourne Central, National Gallery of Victoria, Laneways and street art |
| Brighton | Popular beachside suburb known for its sandy shores, beautiful architecture, and family-friendly atmosphere. Great for a relaxing getaway. | Brighton Beach, Brighton Pier, Royal Melbourne Golf Club, Beachfront restaurants, Colorful bathing boxes |
Do you need a license for Airbnb in Melbourne?
We recommend checking directly with Melbourne's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Melbourne
The Cape Retreat
Entire Place • 12 bedrooms
Bayview Bliss Gas Heated Spa and Solar Heated Pool
Entire Place • 7 bedrooms
Rosebud Beach House - Walk to the beach
Entire Place • 3 bedrooms
Bay Views From Drury Lane
Entire Place • 9 bedrooms
Ultimate Private Acre Escape in Mount Martha
Entire Place • 5 bedrooms
Atlas Retreat
Entire Place • 6 bedrooms
Top Performing Professional Hosts in Melbourne
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Kim | 134 | $15,202,924 | 4333 | 4.74/5.0 |
| Advante Homes | 141 | $5,765,526 | 3519 | 4.18/5.0 |
| MadeComfy | 214 | $5,072,831 | 3991 | 3.98/5.0 |
| Paul & Dan | 99 | $4,988,077 | 17418 | 4.82/5.0 |
| Bedspoke | 107 | $3,738,291 | 3674 | 4.65/5.0 |
| Lively Properties | 29 | $3,492,619 | 1749 | 4.92/5.0 |
| Lee | 41 | $3,267,218 | 8718 | 4.95/5.0 |
| Jellis Craig Short Stays | 95 | $3,049,750 | 536 | 2.36/5.0 |
| Eduardo | 66 | $2,911,278 | 4227 | 4.63/5.0 |
| Adji | 90 | $2,791,588 | 3850 | 4.63/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Melbourne
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (85.1%), with apartment & condo and house properties comprising 92.3% of inventory
- Untapped potential in boutique & hotels, others, outdoor & mobile, unique stays segments (7.7% combined)
Room Capacity Distribution
Analysis of 17,588 properties in Melbourne shows that 1 bedroom properties are most prevalent, making up 30.9% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 59.3% of all listings.
Key Insights
- Most common: 1 bedroom (30.9%)
- Least common: 5+ bedrooms (4.3%)
- Market concentration: 59.3% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 17,588 properties in Melbourne reveals that 2 guests properties dominate the market, representing 24.3% of all listings. The average property accommodates 4.2 guests, with a clear trend towards larger guest capacities. Properties accommodating 2 guests and 4 guests make up 46.4% of the market.
Key Insights
- Most common capacity: 2 guests (24.3% of market)
- Least common capacity: 1 guest (1.5% of market)
- Average guest capacity: 4.2 guests per property
- Market concentration: 46.4% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 17,588 properties in Melbourne, the most common availability pattern is 271-366 days (35.8% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (24.7% of properties).
Key Insights
- Most common availability window: 271-366 days (35.8%)
- Most common booking duration: 91-180 days (24.7%)
- Properties with high availability (180+ days): 60.6%
- Properties with long-term bookings (180+ days): 40.9%
Minimum Stay Distributions
1 Night
3493 listings
22.4% of total
2 Nights
4810 listings
30.9% of total
3 Nights
2220 listings
14.3% of total
4-6 Nights
2172 listings
14% of total
7-29 Nights
920 listings
5.9% of total
30+ Nights
1950 listings
12.5% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 53.3%
- Mid-length stays (4-6 nights) represent 14% of listings
- Monthly+ stays (12.5%) suggest a stable extended-stay market
- High market flexibility with 67.6% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Super Strict 60 Days
160 listings
1.1% of total
Super Strict 30 Days
257 listings
1.7% of total
Refundable
4 listings
0% of total
Non-refundable
1 listings
0% of total
Flexible
2409 listings
16.4% of total
Moderate
4623 listings
31.4% of total
Firm
3229 listings
22% of total
Strict
4020 listings
27.3% of total
Key Insights
- Moderate is the preferred policy at 31.4% of listings
- The market shows a balanced distribution between guest-friendly (47.8%) and strict (49.3%) policies
- Strong market consensus around Moderate policies
- Non-refundable policies are least common at 0.0% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Strong market preference for Moderate policies suggests this should be your baseline
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Mar, Feb, Jan, averaging 62 days
- Shortest booking windows are in Jul, Sep, Aug, averaging 37 days
- Winter shows the longest average booking window at 60 days, while Summer has the shortest at 38 days
Recommendations
- Implement dynamic pricing strategies for Winter bookings at least 60 days in advance
- Consider early bird discounts during Summer to encourage longer lead times
- Focus on last-minute booking promotions during Jul-Aug when lead times are shortest
Popular Airbnb Amenities in Melbourne
Below is the distribution of amenities across listings in Melbourne:
Traveler Demographics
Key Insights
- Domestic travelers make up 74.1% of total guests, indicating a dominant local market share.
- Primary international markets: New Zealand (4.3%) and United Kingdom (4.1%)
- English is the top language at 77.3%, followed by Chinese (9.8%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 7.4%
Recommendations
- Target marketing campaigns for Melbourne and Sydney markets
- Develop localized content for New Zealand and United Kingdom
- Prioritize English and Chinese language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Melbourne. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Macedon | 10 | $4,077 | $471.61 | 42% |
| Lyonville | 10 | $3,712 | $337.81 | 38% |
| Leopold | 13 | $3,680 | $407.21 | 37% |
| Lancefield | 21 | $3,643 | $315.33 | 50% |
| Trentham | 54 | $3,412 | $272.06 | 42% |
| Shire of Strathbogie | 43 | $3,334 | $303.87 | 38% |
| Malmsbury | 11 | $3,254 | $220.96 | 39% |
| Nagambie | 34 | $3,247 | $283.25 | 40% |
| Shire of Hepburn | 292 | $3,114 | $291.22 | 37% |
| Daylesford | 466 | $3,095 | $291.19 | 35% |
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