Melbourne vs Western Australia: which is better for Airbnb investment? (2026)

Bottom line

Western Australia edges ahead of Melbourne on higher occupancy (42% vs 30%), stronger RevPAR (£25 vs £15).

Head-to-head metrics

	Melbourne	Western Australia
Median occupancy	30%	42%
Median daily rate	£80	£110
Median RevPAR	£15	£25
Active listings	15,424	10,674
YoY occupancy	+8.6 pts	+19 pts
YoY daily rate	+1.3%	+3.3%
Regulation risk	—	—
Annual night cap	None	None
License required	No	No

Full analysis: Melbourne vs Western Australia

On the money side of this comparison — what a listing actually earns against the nights it has available — Western Australia finishes decisively ahead of Melbourne. Revenue per available night — rate and occupancy combined, the figure that actually reaches an owner — is 71.6% higher in Western Australia: £25 against £15. Western Australia sells 12 more points of its calendar — 42% median occupancy against 30% in Melbourne. That is not a rounding difference, and it compounds over a hold period.

Western Australia takes both halves of the yield equation, which is less common than it sounds. It charges more per night — £110 against £80 — and still fills more of the year, 42% against 30%. A market that leads on price and utilisation at once is normally one where demand has outrun supply, rather than one where hosts are discounting to keep the calendar busy. RevPAR reflects the double advantage at £25 against £15.

That verdict needs a caveat, because Melbourne is not simply the weaker market of the two. Melbourne is the deeper market at 15,424 active listings against 10,674, which usually means better comparables going in and a wider buyer pool coming out. Melbourne sits at the cheaper end at £80 a night against £110, which lowers the bar for filling shoulder-season dates and usually tracks a lower purchase price too. If your model leans on that dimension, the ordering above can reasonably flip.

Neither Melbourne nor Western Australia currently has a verified short-term rental regulation record in our register, so the comparison above is a yield comparison only. Regulation is the single largest source of downside in this asset class — an unverified market is an unpriced risk, not an absent one.

The two calendars also behave differently. Melbourne peaks in July at 66.7% and bottoms in October at 47.1%; Western Australia runs from 53.6% in June down to 33.8% in September. Both swing by a similar amount across the year, so neither offers meaningfully steadier cash flow than the other.

Who each suits, then. Melbourne suits buyers who want a conventional, lightly regulated entry. Western Australia answers to the same regulatory profile, so the split between them is operational rather than legal. It is also the momentum side of this pair. Every figure above comes from the same Inside Airbnb snapshot pipeline on both sides, filtered to listings with at least one booking in the last twelve months. Occupancy medians are drawn from 9,898 active Melbourne listings and 5,885 in Western Australia.

Frequently asked questions

Is Melbourne or Western Australia better for Airbnb investment?

Western Australia, on the data we track. It leads on stronger RevPAR (£25 vs £15), higher occupancy (42% vs 30%), and a higher nightly rate (£110 vs £80). Melbourne is not the weak side of this pair, though — it wins on a deeper market (15,424 vs 10,674 active listings).

Which has higher occupancy, Melbourne or Western Australia?

Western Australia, at 42% median occupancy against 30% in Melbourne — a gap of 12 points. That is a wide spread by short-term rental standards and usually reflects a structural demand difference rather than better hosting. Over the last twelve months Melbourne gained 8.6 points and Western Australia gained 19 points, so the gap is widening.

Which has higher nightly rates, Melbourne or Western Australia?

Western Australia, at £110 a night against £80 in Melbourne — roughly 37.6% more. Revenue per available night agrees rather than contradicts: £25 in Western Australia against £15, so the rate premium survives contact with the occupancy figures.

Which has stronger year-over-year growth, Melbourne or Western Australia?

Western Australia, on occupancy: +19 points over the last twelve months against +8.6 points in Melbourne. Nightly rates rose 1.3% in Melbourne and rose 3.3% in Western Australia over the same window. One year of movement is a direction, not a trend — weigh it against the regulation picture before treating it as momentum.

Which is the bigger Airbnb market, Melbourne or Western Australia?

Melbourne, with 15,424 active listings against 10,674 in Western Australia. Size cuts both ways: a deep market gives you comparables, contractors and an exit, while a thinner one means fewer near-identical rivals competing for the same search results.

How much can you earn from an Airbnb in Melbourne vs Western Australia?

Western Australia earns more: roughly £9,226 a year for a median listing against £5,386 in Melbourne. Those are gross booking revenues before cleaning, management, platform fees, furnishing amortisation and tax — budget for a meaningful share of them, and note that a median listing is a median operator, not a good one.

Go deeper on each city

Market guide

Airbnb in Melbourne →

Occupancy, ADR, neighborhoods, regulation

Market guide

Airbnb in Western Australia →

Occupancy, ADR, neighborhoods, regulation

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