Airbnb Management in South Melbourne, 3205: Short Term Market Report (Updated 2025)

Discover how much your property in South Melbourne could profit as a short-term rental home on Airbnb & other short-term rental platforms.

South Melbourne, a vibrant inner-city suburb just minutes from Melbourne’s CBD, is a prime location for short-term rentals, offering visitors a mix of historic charm and modern convenience. Famous for the iconic South Melbourne Market, where guests can enjoy fresh produce and the renowned South Melbourne Dim Sims, the area also boasts a lively cafe culture along Clarendon Street. Beautiful heritage streetscapes, lush parks like Albert Park Lake, and easy access to the city via tram make it an attractive destination. Visitors can also explore local galleries, boutique shopping, and the buzzing nightlife, making South Melbourne a sought-after stay for tourists and business travellers alike.

How much can you really earn with an Airbnb or short-term rental in South Melbourne? At Staypilot, we specialise in Airbnb management in South Melbourne and use real-time data on the local short-term rental market. This market summary offers owners and investors key insights into the potential of owning a holiday rental property in South Melbourne.

This short term market report is generated using our own database of managed properties, in combination with aggregate local market data from AirDNA and Airbtics data platforms. If you would like to receive an appraisal for a specific property, please contact us via our website.

South Melbourne, 3205 - Short Term Market Report

Key Details - Short Term Rental Market

Number of short-term listings All property types & sizes	371
Avg. nightly rate All property types & sizes	$223
Avg. occupancy rate All property types & sizes	68%
Avg. short-term market income Excludes new & part-time listings	$55,349

Average Nightly Rate

Top 50% of listings	Top 25% of listings	Top 10% of listings
$223	$402	$426

Occupancy

Top 50% of listings	Top 25% of listings	Top 10% of listings
68%	72%	76%

Property Supply

Studio: 1%	3 bedrooms: 19%
1 bedroom: 30%	4+ bedrooms: 3%
2 bedrooms: 35%	Private rooms: 12%

Why South Melbourne is a Prime Airbnb Location

• High Occupancy from Business & Leisure Travelers – Close proximity to Melbourne’s CBD makes it a hotspot for short-term rentals.

• Vibrant Dining & Shopping Scene – South Melbourne Market, Clarendon Street cafes, and boutique stores attract visitors year-round.

• Well-Connected Public Transport – Quick tram access to the city, making it ideal for corporate guests.

• Historic & Modern Appeal – A mix of heritage-listed buildings and contemporary apartments attracts a diverse range of travellers.

How to Maximise Airbnb Revenue in South Melbourne

• Target Business Travellers – Optimise listings with fast WiFi, workspaces & flexible check-in.

• Highlight “CBD-Adjacent” in Listing Titles – Appeal to guests looking for an affordable alternative to Melbourne city hotels.

• Emphasise the South Melbourne Market & Dining Scene – Many visitors stay in the area to experience the food culture.

• Offer Discounts for Extended Stays – Business professionals often book longer stays, so weekly and monthly discounts can increase occupancy.

• Promote Proximity to Major Event Venues – Crown Casino, Melbourne Convention & Exhibition Centre, and Marvel Stadium drive demand.

Dive deeper into Airbnb property ownership in South Melbourne

Understanding the potential returns of a short stay property in South Melbourne requires careful consideration of many factors. A Staypilot local Airbnb manager can consult you on additional cost factors such as platform fees (i.e. Airbnb fees), cleaning costs and management fees. Contact us today and we can provide a detailed explanation of the operational complexity involved in running an Airbnb property, as well as how we can take the hassle out of short term property management with our fully comprehensive service.

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About Staypilot 

Staypilot provides comprehensive short-term rental management services to homeowners in Melbourne, Geelong, the Bellarine Peninsula and the Mornington Peninsula. Our platform blends extensive experience with a personal approach, delighting owners and guests alike. By listing your home with Staypilot, you can enjoy the exceptional returns of the short stay market without the hassle.