Melbourne continues to be one of Australia’s strongest destinations for short-term accommodation, creating exciting opportunities for property owners looking to maximise their returns.
While the broader Melbourne rental market continues to evolve, demand for high-quality short stays has remained resilient thanks to year-round tourism, major sporting events, business travel and international visitors returning in greater numbers.
At Oasis Stay, we understand that whether you’re an experienced Airbnb host or considering entering the short-term rental space for the first time, understanding current market trends can help you make smarter investment decisions.
Here’s a breakdown of what’s shaping Melbourne’s short-term rental market in 2026.
Melbourne Airbnb & Short-Term Rental Market Summary
Melbourne remains one of Australia’s most active and competitive short-term rental markets.
According to market data, there were approximately 33,300 active short-term rental listings across Melbourne as of June 2026. Properties achieved an average annual occupancy of 55%, with average annual revenue of around $18,100 per listing and an average daily rate (ADR) of $184 per night.
Compared to the previous year, occupancy increased by 6.6%, while average listing revenue grew by 19.1%, demonstrating that demand has continued to strengthen despite increased competition.
One interesting trend is that although average nightly rates softened slightly compared with 2025, stronger occupancy helped many hosts generate higher overall revenue. This reflects a maturing market where strategic pricing often outperforms simply charging the highest nightly rate.
For property owners, this means that simply listing a property on Airbnb is no longer enough. Success increasingly depends on creating an outstanding guest experience while pricing your property intelligently throughout the year.
Growing Demand For Short Stay Accommodation
Melbourne has long been recognised as Australia’s events capital, and this continues to drive strong demand for short-term accommodation.
Unlike many destinations that experience pronounced seasonal peaks, Melbourne benefits from a relatively consistent flow of visitors throughout the year. Corporate travellers, interstate visitors, international tourists, families visiting relatives and attendees at sporting and cultural events all contribute to steady booking activity.
Recent market data shows occupancy increasing year-on-year, indicating that traveller demand is continuing to outpace available supply in many areas.
Several factors are supporting this growth, including:
- International tourism.
- Strong domestic travel demand.
- Melbourne’s reputation as Australia’s sporting and cultural capital.
- Increased business travel and conferences.
- Flexible working arrangements encouraging longer stays.
Season of Opportunity
Melbourne’s packed calendar of events creates repeated booking surges throughout the year. The Australian Open, Formula 1 Australian Grand Prix, AFL Finals, Melbourne Cup Carnival, international concerts, exhibitions and conventions consistently attract thousands of visitors seeking accommodation close to the action.
In 2026 alone, Melbourne’s winter events season is expected to attract more than five million attendees and generate approximately $2.5 billion in visitor spending, reinforcing just how important tourism remains to accommodation providers across the city.
Why Local Events Matter More Than Ever
One of the biggest differences between an average-performing Airbnb and a high-performing one is how well pricing responds to demand.
Many hosts make the mistake of setting one nightly rate and leaving it unchanged for months. Unfortunately, this often means missing out on significant revenue during major events while also pricing too high during quieter periods.
Melbourne’s events calendar creates regular spikes in accommodation demand. These events can include: sporting events, major concerts, international conferences, university graduations and school holiday periods.
This is where Airbnb price optimisation and dynamic pricing becomes essential.
The Necessity Of Dynamic Pricing
Rather than relying on fixed nightly rates, dynamic pricing adjusts accommodation prices based on real-time demand, booking pace, local events, seasonality and competitor activity. When used effectively, it helps maximise occupancy during quieter periods while capturing higher nightly rates when demand surges.
At Oasis Stay, we’re aware of the common misunderstanding surrounding dynamic pricing. At least for us, it isn’t about charging more. It’s about finding the optimal balance between occupancy and revenue. By continuously monitoring market conditions, booking trends and local events, our team works to help owners achieve stronger annual returns while keeping their properties competitively positioned.
What Makes a Successful Short-Term Rental in Melbourne?
While every property is different, the highest-performing short-term rentals often share several key characteristics. Guests today have more choice than ever, so properties that deliver comfort, convenience and a memorable experience consistently outperform those that don’t.
A Convenient Location
Location remains one of the biggest factors influencing booking performance.
Properties located close to Melbourne’s CBD or with easy access to public transport tend to appeal to a wider range of guests. Business travellers appreciate shorter commutes, while holidaymakers enjoy being within easy reach of Melbourne’s laneways, restaurants, shopping precincts, sporting venues and cultural attractions.
Neighbourhoods such as Southbank, Docklands, South Melbourne, Richmond, Carlton, Fitzroy and St Kilda continue to attract strong demand due to their accessibility and lifestyle appeal.
Of course, a great location alone isn’t enough. The overall guest experience is what encourages five-star reviews, repeat bookings and stronger occupancy over time.
A Comfortable Workspace
Remote and hybrid work have changed the way people travel.
Many guests are no longer booking accommodation solely for holidays. Professionals attending conferences, interstate workers on temporary assignments and digital nomads increasingly look for properties where they can comfortably work throughout their stay.
Simple additions such as a dedicated desk, ergonomic chair, fast and reliable Wi-Fi, multiple power outlets and good natural lighting can significantly improve a property’s appeal. These features often help attract longer bookings while increasing guest satisfaction.
Appealing Amenities
When guests compare dozens of listings online, thoughtful amenities can be the deciding factor.
Features that regularly attract attention include:
- Swimming pools
- Gyms
- Secure parking
- Balconies with city views
- Fully equipped kitchens
- Air conditioning and heating
- In-unit laundry facilities
- Smart TVs with streaming services
- High-speed internet
Not every property needs every feature, but highlighting the amenities you do offer, and ensuring they are well maintained, can make your listing more competitive.
A Clean Presentation
Professional presentation has become one of the biggest differentiators in Melbourne’s growing short-term rental market. In fact, you’re twice as likely to get chosen if your property has good style coupled with a clean environment.
Guests often make booking decisions within seconds of viewing a listing. Bright photography, cohesive styling and a clean, modern aesthetic help create an immediate positive impression (see our Creative Furniture Styling Tips for Airbnb Hosts).
Attention to detail makes a noticeable difference. Carefully selected artwork, quality furnishings, uncluttered spaces, neutral colour palettes and thoughtful décor all contribute to a property that feels welcoming and premium.
Equally important is professional cleaning between every stay. Spotless kitchens, sparkling bathrooms, fresh linen and immaculate presentation build trust with guests and contribute to higher review scores. Properties with consistently excellent reviews are more likely to attract future bookings.
At Oasis Stay, Our team works with owners to ensure every property is professionally presented, thoroughly cleaned and thoughtfully prepared to meet rising guest expectations. From styling advice and high-quality photography services to housekeeping and guest communication, we help create stays that leave lasting impressions.
Why Choose Oasis Stay for Airbnb Property Management?
Managing a short-term rental can be rewarding, but it also requires time, local knowledge and constant attention.
Successful Airbnb hosting involves much more than creating a listing. Owners need to respond quickly to enquiries, coordinate check-ins, manage cleaning schedules, optimise pricing, monitor occupancy, maintain the property and ensure guests receive exceptional service throughout their stay.
That’s where Oasis Stay comes in.
Our experienced team provides end-to-end Airbnb property management designed to help Melbourne property owners maximise returns while enjoying a hands-off experience.
Our services include:
- Dynamic pricing based on market demand and local events.
- Professional Airbnb listing creation and optimisation.
- Professional photography, furniture and styling services.
- Thorough guest communication, Airbnb guest vetting, and support
- Seamless check-in services.
- Hotel-quality housekeeping, linen and toiletries services.
- Routine maintenance.
We combine local market expertise with proven revenue management strategies to help owners achieve stronger occupancy, higher guest satisfaction and better long-term returns.
Whether you own a city apartment, an investment property or a luxury home, Oasis Stay manages every detail so you can enjoy the benefits of short-term rental ownership without the day-to-day workload and stress.
Ready to Maximise Your Melbourne Short-Term Rental?
Whether you’re new to Airbnb or looking to improve the performance of your existing property, Oasis Stay is here to help.
Contact Oasis Stay today and discover how professional Airbnb property management can help your Melbourne property reach its full earning potential.
