Docklands has become one of Melbourne’s most recognisable waterfront precincts, with modern apartments, city views, restaurants, entertainment and direct access to the CBD.
For Airbnb owners, the suburb offers a combination of features that can support short stay demand, including its proximity to Marvel Stadium, Southern Cross Station and Melbourne’s central business district. The large supply of modern apartments also means owners need to pay close attention to presentation, pricing and the features that make an individual property stand out.
Short stay performance varies from one apartment to another, but Docklands has several characteristics that make it an interesting market for property owners.
Why Is Docklands Popular With Airbnb Guests?
Docklands appeals to guests who want the convenience of being close to Melbourne’s CBD while staying somewhere with a more modern waterfront setting.
Victoria Harbour, waterfront promenades, restaurants, shopping and entertainment give visitors plenty to do within the precinct, while the CBD is close enough for guests to travel into the city for work, shopping, dining and major attractions.
The area also benefits from its proximity to major transport connections, making it practical for visitors arriving in Melbourne and those planning to explore the wider city.
A Strong Mix of Business and Leisure Visitors
One of Docklands’ advantages is that it can appeal to several different types of short stay guests.
Business travellers may value the proximity to Melbourne’s CBD and the area’s modern apartment accommodation. Leisure visitors can make use of the waterfront, restaurants, shopping and easy access to central Melbourne.
Major events add another source of potential demand. Marvel Stadium is located within Docklands and hosts AFL matches, concerts and other large events throughout the year.
This creates the potential for different demand patterns across the calendar rather than relying solely on traditional holiday periods.
Marvel Stadium Creates Event-Driven Demand
For properties close to Marvel Stadium, major events can be particularly relevant.
AFL matches, concerts and other events can bring large numbers of visitors into Melbourne, with some guests looking for accommodation within walking distance of the venue.
Event demand can also affect pricing and booking patterns. However, owners should be careful about assuming that every event will result in the same increase in occupancy or nightly rates.
The impact depends on the size and type of event, the availability of competing accommodation and the characteristics of the individual property.
For an Airbnb owner, having a pricing strategy that can respond to these changes is more useful than simply setting one nightly rate and leaving it unchanged.
Excellent Access to Melbourne’s CBD
Docklands’ proximity to Melbourne’s CBD is one of its most practical advantages.
Southern Cross Station sits directly beside the eastern edge of Docklands and provides access to metropolitan, regional and airport-linked transport services. The precinct is also connected to Melbourne’s tram network, with Docklands included within the Free Tram Zone.
For visitors, this means they can stay in Docklands while having straightforward access to the city and other inner Melbourne destinations.
That combination can appeal to both leisure guests and business travellers who want to remain close to the CBD without staying in a conventional city-centre hotel.
Waterfront Apartments Give Owners Something to Sell
A major point of difference for Docklands is the apartment stock itself.
Many properties offer features that can be particularly attractive to short stay guests, including:
- Harbour or city views
- Balconies and outdoor areas
- Modern kitchens and living spaces
- Building facilities
- Secure parking
- Higher-floor outlooks
- Proximity to the waterfront
Not every apartment has these features, and not every feature will have the same value to guests. However, where a property has a strong outlook or desirable amenity, those characteristics can become an important part of its listing.
Good photography and thoughtful presentation are particularly important in a market where many apartments can look similar online.
Docklands Has Plenty to Do Without Leaving the Precinct
Guests do not necessarily need to travel into the CBD to find things to do.
The waterfront provides walking routes and open spaces, while The District Docklands offers restaurants, shops, entertainment and other attractions.
The wider Docklands precinct also includes marina areas, public spaces and access to the Yarra River, giving visitors a different experience from staying in a purely commercial part of Melbourne.
For short stay guests, having restaurants, transport and entertainment within easy reach can make a property more convenient and help reduce the need for a car.
A Large Apartment Market Means Presentation Matters
Docklands has a substantial concentration of modern apartments. This is both an opportunity and a consideration for Airbnb owners.
A large apartment market means guests have plenty of choice. Two properties in the same building can therefore perform quite differently depending on their furnishings, photography, reviews, pricing, amenities and overall presentation.
Simply being located in Docklands is not necessarily enough to make a property competitive.
Owners need to consider what makes their apartment worth choosing over another nearby listing.
That could be a better view, more comfortable furniture, a larger living area, parking, a balcony, better photography or a pricing strategy that responds to demand.
What Could an Airbnb in Docklands Earn?
There is no single figure that accurately represents what every Docklands Airbnb can earn.
Current short stay datasets produce materially different results depending on the listings included and the methodology used. Some current market data reports approximately A\$62,299 in annual revenue, an average daily rate of A\$246 and occupancy of around 69%. Other market data reports approximately A\$20,736 in annual revenue, an average daily rate of A\$202 and occupancy of 47.3%.
The difference is significant and is a good reason not to treat a suburb-wide average as a forecast for an individual property.
Actual performance can depend on:
- Apartment size and number of bedrooms
- Floor level and views
- Building facilities
- Parking
- Quality of furnishings
- Property presentation
- Exact location
- Nightly pricing
- Occupancy
- Seasonal demand
- Event periods
- Cleaning and operating costs
- Management and platform fees
For an owner considering short stay accommodation, a property-specific assessment is more useful than relying on a single headline market figure.
Is Docklands Too Competitive for Airbnb?
Competition is an important consideration in Docklands because of the large number of apartments available for short stay accommodation.
That does not necessarily make the market unsuitable. It does mean that properties need to give guests a reason to choose them.
The strongest listings tend to have a clear proposition. That might be a spectacular view, an attractive interior, a convenient location, excellent amenities or a combination of several features.
Pricing also matters. A property that is priced too high can lose bookings to similar apartments, while pricing too low can reduce revenue unnecessarily.
Dynamic pricing can help owners respond to changes in demand, including weekends, holidays, major events and quieter periods.
What Should Docklands Airbnb Owners Consider?
Before putting an apartment on the short stay market, owners should look beyond potential income.
Owners Corporation Rules
Apartment owners need to check whether their building permits short stay accommodation.
Since 1 January 2025, Victorian owners corporations have been able to make rules banning short stay accommodation in lots within their development by special resolution, subject to the applicable requirements.
This makes checking the applicable owners corporation rules particularly important for Docklands apartments.
Victorian Short Stay Levy
Victoria’s short stay levy applies to stays of less than 28 consecutive days. The levy is 7.5% of the total booking fee.
Where a booking is made through a platform such as Airbnb, the platform is responsible for collecting and paying the levy.
Owners should take the levy into account when considering their pricing and expected returns.
Building Access and Guest Management
Apartment buildings can require more coordination than standalone houses. Key collection, secure entry, lifts, parking, rubbish disposal and access to shared facilities all need to work smoothly for guests.
A well-managed check-in process can make a significant difference to the guest experience.
Noise and Guest Behaviour
Short stay apartments need to be managed carefully in a shared residential building.
Owners and owners corporations have options for dealing with issues such as excessive noise, damage and interference with other residents’ enjoyment of their lots or common property.
For owners, good guest screening, clear house rules and responsive management can help reduce problems.
What Makes a Docklands Airbnb Stand Out?
There is no single formula for a successful Docklands short stay property, but several factors can help.
Strong Photography
Views, balconies, natural light and modern interiors need to come across clearly in the listing.
Comfortable Interiors
Guests are comparing apartments as well as prices. Comfortable beds, functional living areas and thoughtful furnishings can influence both bookings and reviews.
Competitive Pricing
Rates need to reflect demand and competition rather than remaining fixed throughout the year.
Useful Amenities
Parking, reliable Wi-Fi, a well-equipped kitchen, laundry facilities and building amenities can all be relevant depending on the type of guest being targeted.
Consistent Guest Service
Fast communication and a well-organised stay can help create better reviews and repeat bookings.
Is Docklands a Good Suburb for Airbnb Owners?
Docklands has several characteristics that can work well for short stay accommodation.
Its waterfront setting, modern apartments, proximity to the CBD, access to Southern Cross Station and event activity around Marvel Stadium all give owners different ways to appeal to guests.
At the same time, the concentration of apartment accommodation means owners cannot rely on location alone. Property presentation, pricing, guest experience and building rules all need to be considered.
The result is a market where the individual property matters considerably.
Managing an Airbnb in Docklands
Running a short stay apartment involves more than creating a listing.
Someone needs to monitor pricing, answer guest enquiries, coordinate cleaning, manage check-ins, deal with maintenance and keep the property ready between bookings.
For owners who do not want to manage those tasks themselves, professional management can provide a more hands-off option.
OptiNest manages short stay properties in Docklands, handling the day-to-day operation while giving owners visibility over their property’s performance.
Thinking About Airbnb Management in Docklands?
Docklands offers a combination of waterfront accommodation, modern apartments, CBD access, transport connections and event-driven demand that can make it an appealing location for short stay accommodation.
But suburb-wide market figures only tell part of the story. An apartment’s exact location, views, layout, presentation, amenities and pricing strategy can all influence its results.
If you own a Docklands apartment and want to understand its potential as a short stay property, OptiNest can assess the property and provide an estimate based on its individual characteristics and current market conditions. Contact OptiNest today!
