Melbourne, Australia, is a city that needs no introduction. Known for its vibrant culture, stunning architecture, and world-class coffee, it's no surprise that Melbourne is a top destination for travelers from around the globe. With the rise of the sharing economy, Airbnb has become a popular choice for both hosts and guests, offering unique stays and lucrative opportunities. But just how profitable is hosting an Airbnb in Melbourne? Let's dive into the data from Airbtics to uncover the annual revenue trends and what they mean for potential hosts.
Melbourne's Airbnb Market at a Glance
According to Airbtics, Melbourne's Airbnb market continues to thrive, with hosts earning between 30,000 and 50,000 AUD annually, depending on location, property type, and occupancy rates. The latest data (August 2023 – July 2024) shows:
Airbnb Occupancy Rate: 68%
Airbnb Average Daily Rate: AU$197
Total Listings in Melbourne: 29,725 properties
Year-over-Year Revenue Change: -5.49%
Best Month for Bookings in Melbourne: January (peak summer and Australian Open season)
Image Source: Airbtics, July 2024.
Melbourne's Monthly Airbnb Revenue
The revenue data from August 2023 to July 2024 provides a detailed look at monthly earnings, ranging from a low of AU3,270 to a high of AU4,636, with an average monthly revenue of AU$3,942. This indicates a relatively stable income stream for hosts, with some fluctuations throughout the year.
August 2023 to December 2023: Revenue starts strong in August, likely due to the tail end of winter and the beginning of spring. Events like the Melbourne Festival and AFL finals help maintain steady income through October.
January 2024: A noticeable dip occurs in January, possibly due to the post-holiday season slowdown.
February 2024 to April 2024: Revenue picks up again, driven by autumn events like the Melbourne Food and Wine Festival and the Australian Grand Prix.
May 2024 to July 2024: Revenue remains stable during the colder winter months, suggesting consistent demand from business travelers or locals.
While the market remains lucrative, the slight dip in annual revenue highlights the importance of strategic pricing and adaptability in this competitive landscape.
Source: Airbtics, July 2024.
How Much Can You Earn as an Airbnb Host in Melbourne?
Many people wonder, "Is Airbnb profitable for hosts?" The data from Airbtics reveals mid-scale properties dominate Melbourne's market, with earnings varying by size and location:
1-Bedroom Apartment: Annual Airbnb rental revenue of approximately $30,000 AUD.
2-Bedroom Apartment: Annual Airbnb rental revenue of around $40,000 AUD.
3-Bedroom House: Annual Airbnb rental revenue of up to $50,000 AUD or more.
These figures are based on an average nightly rate of 150−200 AUD and an occupancy rate of 70-80%. Of course, earnings can vary depending on factors like property location, amenities, and how well the listing is marketed.
Key Factors Driving Airbnb Revenue in Melbourne
Tourism Boom
Melbourne is a magnet for tourists, attracting millions of visitors each year. From the iconic Federation Square to the bustling Queen Victoria Market, the city offers something for everyone. Major events like the Australian Open and the Melbourne International Comedy Festival further boost demand for short-term accommodations.
Diverse Neighborhoods
Melbourne's neighborhoods each have their own unique charm, catering to different types of travelers. For example:
CBD: Ideal for business travelers and tourists who want to be in the heart of the action.
St Kilda: Perfect for beach lovers and those seeking a laid-back vibe.
Fitzroy: A hit with creatives and hipsters, thanks to its vibrant street art and indie cafes.
This diversity allows hosts to tailor their listings to specific audiences, maximizing occupancy and revenue.
High Occupancy Rates in Melbourne
Melbourne's Airbnb properties maintain steady demand, with an average airbnb occupancy rate of 68% and daily rates hitting AU$197. While occupancy is slightly lower than previous years, the rise in average daily rates suggests hosts are optimizing pricing strategies to offset seasonal fluctuations.
For details, visit: Airbnb Occupancy Rate in Australia 2025
Short-term Rental Regulation Update
Melbourne currently has lenient short-term rental regulations compared to stricter cities like Sydney or Barcelona. However, hosts should stay informed about potential policy changes.
For details, visit: Navigating Airbnb Hosting in Australia: New Rules for 2025
Tips for Maximizing Your Airbnb Revenue in Melbourne
Looking to increase Airbnb revenue as a host in Melbourne? Here are some practical strategies to boost your earnings:
Optimize Your Listing
Use high-quality photos to showcase your property.
Write a compelling description that highlights unique features.
Set competitive pricing based on market trends.
Focus on Guest Experience
Provide clean, well-maintained accommodations.
Offer thoughtful touches like local guides or welcome packs.
Respond promptly to guest inquiries and reviews.
Leverage Seasonal Trends
Adjust your pricing during peak seasons and major events.
Offer discounts during off-peak periods to maintain occupancy.
Stay Compliant
Familiarize yourself with local regulations for short-term rentals.
Ensure your property meets safety and licensing requirements.
The Future of Airbnb in Melbourne
Despite a 5.49% decline in annual revenue, Melbourne's Airbnb market remains resilient. The city's 29,725 listings indicate a competitive but opportunity-rich environment. Hosts who focus on peak seasons like January, optimize pricing, and adapt to market shifts will likely thrive.
Final Thoughts
Melbourne's Airbnb market offers a wealth of opportunities for hosts willing to put in the effort. By understanding the trends, optimizing your listing, and delivering exceptional guest experiences, you can unlock the full potential of your property.
So, what are you waiting for? Dive into Melbourne's thriving Airbnb market and start turning your property into a profitable venture today! Contact us to learn more about our airbnb management service in Melbourne.