How to Price Your Airbnb in Melbourne: The Complete 2026 Guide

Melbourne’s short-term rental market is one of Australia’s most dynamic, driven by a mix of business travel, major events, and a thriving tourism scene. This guide covers everything you need to set competitive rates, maximise occupancy, and stay compliant with local rules.

Understanding the Melbourne Short-Term Rental Market

• Melbourne attracts over 10 million domestic and international visitors annually, creating consistent demand across the city.
• The market is highly seasonal, with summer holidays and major events driving peak pricing opportunities.
• Inner-city suburbs like Fitzroy and South Yarra command premium rates, while outer areas offer more value-driven stays.
• Business travel from the CBD and Docklands creates steady midweek demand, especially during conference seasons.
• Short-term rental supply has grown steadily, making strategic pricing essential to stand out from competitors.

Melbourne's Seasonal Pricing Calendar

Peak Season

December to February sees rates surge by 40-60% as summer holidays, the Australian Open, and New Year’s celebrations fill the city. Bookings often require minimum stays of 3-5 nights during this period.

High Season

March to April and October to November deliver strong demand from events like the Grand Prix and Melbourne Cup, with rates typically 20-30% above base. Expect shorter booking windows and steady occupancy.

Shoulder Season

May and September offer moderate demand with rates around 10-15% above base, ideal for testing new listings or adjusting pricing strategies. Occupancy remains solid, especially near attractions.

Low Season

June to August sees cooler weather and lower demand, with rates often dropping 10-20% below base. This is the best time to target budget-conscious travellers and long-stay guests.

Event-Specific Pricing Windows

Australian Open (January): rates in Richmond and South Yarra can double during the tournament. Melbourne Grand Prix (March): Albert Park listings see a 50-70% premium. Melbourne Cup (November): Flemington-area properties often command triple their base rate for the week.

Setting Your Base Rate in Melbourne

Build Your Comp Set

Identify 10-15 similar listings in your neighbourhood—matching size, amenities, and guest capacity—to establish a realistic baseline. Adjust for factors like parking, Wi-Fi quality, and proximity to public transport.

Neighbourhood Matters in Melbourne

CBD and Southbank attract business travellers and tourists, with rates 15-25% higher than the city average. Fitzroy and Collingwood draw creative crowds and trend-seekers, often commanding 10-20% premiums. St Kilda appeals to beach lovers and families, with steady year-round demand. Brunswick and Carlton offer more affordable rates, popular with students and budget travellers. Docklands sees higher midweek demand from corporate guests but quieter weekends.

Weekday vs Weekend Split

Set your weekday rate 10-20% lower than the weekend rate to capture business travellers, then increase weekend prices by 20-30% for leisure guests. Friday and Saturday nights typically command the highest premiums, especially in entertainment districts.

The New Listing Strategy

Start with a base rate 10-15% below your comp set to attract initial reviews and build momentum. Once you have 5-10 positive reviews, gradually raise rates to match or exceed competitors.

Melbourne STR Regulations

Victoria requires all short-term rental hosts to register with the Victorian Short-Term Rental Accommodation Register and pay an annual fee of around $40. A 7.5% service fee applies to all bookings through platforms like Airbnb. Check our STR Regulation Finder for the latest requirements.

Pricing Mistakes Melbourne Hosts Make

• Ignoring event calendars: Failing to adjust rates for major events like the Grand Prix leaves significant revenue on the table.
• Setting static rates year-round: Melbourne’s seasonal swings mean a fixed price often leads to lost bookings or missed profits.
• Underpricing during peak season: Offering discounts when demand is high reduces your earning potential without boosting occupancy.
• Overpricing in low season: Keeping high rates during winter can result in empty calendars and low ranking in search results.
• Neglecting minimum night stays: Not adjusting minimum stays for events or weekends can lead to short, unprofitable bookings.

When to Switch to Dynamic Pricing in Melbourne

If you manage multiple listings or struggle to manually adjust rates for events and seasons, dynamic pricing automates the process. It uses real-time data to optimise your rates, saving time and boosting revenue by 10-30%.

Dynamic pricing tools like Beyond Pricing connect directly to your Airbnb calendar and adjust rates daily based on real-time demand data.

See our Analytics & Revenue Software directory for a full comparison of pricing tools.

Quick-Start Melbourne Pricing Checklist

• Research your comp set of 10-15 local listings
• Set a seasonal calendar with peak, high, shoulder, and low rates
• Adjust for major events like the Australian Open and Grand Prix
• Create a weekday-weekend rate split (10-20% difference)
• Implement a new listing strategy with 10-15% below market
• Register with the Victorian Short-Term Rental Accommodation Register
• Use our Airbnb Fee Calculator to understand your net payout
• Check our STR Profit Calculator to model revenue against costs
• Set minimum night stays for events and weekends
• Review and adjust rates weekly based on booking pace

Frequently Asked Questions

What is the average nightly rate for an Airbnb in Melbourne?

Rates vary widely by neighbourhood, but a typical one-bedroom apartment in the CBD might earn $120-$180 per night, while a house in Fitzroy can command $200-$300.

How do I price my Airbnb for the Australian Open?

Raise your base rate by 50-100% during the tournament weeks, especially if you’re near Melbourne Park in Richmond or South Yarra.

What are the rules for short-term rentals in Melbourne?

You must register with the state register, pay a 7.5% service fee, and follow local council rules, which may include occupancy limits.

Should I use dynamic pricing for my Melbourne Airbnb?

Yes, if you want to maximise revenue without constant manual work—especially if you host during events or have multiple listings.

How can I attract bookings during Melbourne’s low season?

Offer discounts for weekly or monthly stays, promote nearby winter attractions like the Queen Victoria Market, and adjust your minimum night stays to 2-3 nights.