Why Are There Suddenly So Many Brothels in Victoria?

If it feels like Melbourne has more brothels, adult massage venues and sex service businesses than it did a few years ago, you are not the only one noticing.

In July 2026, the Herald Sun reported an industry estimate suggesting that more than 5,000 brothels or sex service businesses may now be operating across Victoria, with many appearing in suburban shopping strips. The figure attracted plenty of attention because it sounded dramatically higher than anything seen under Victoria’s old licensing system.

But the story is more complicated than “5,000 new brothels suddenly opened”.

The biggest change is actually how Victoria defines, regulates and records sex work businesses.

Victoria Changed the Rules, Not Just the Number of Brothels

Victoria decriminalised sex work in two stages.

The first reforms began on 10 May 2022. The bigger change for brothel operators arrived on 1 December 2023, when the Sex Work Act 1994 was repealed and the old sex work service provider licensing system was abolished.

Before that change, brothels and other sex work businesses operated under a special regulatory framework. Operators could require licences, brothel managers were separately regulated, and specific planning rules applied to where brothels could operate.

That system no longer exists.

According to Consumer Affairs Victoria, sex work businesses such as brothels and escort agencies no longer need a specific sex work licence or registration simply because they provide sex services. They are instead regulated through broader systems that already apply to other Victorian businesses, including workplace safety, planning, public health and general criminal law.

For Melbourne, this has significantly changed where and how sex services businesses can operate.

Does the “5,000 Brothels” Figure Really Mean 5,000 Traditional Brothels?

Probably not in the way most people imagine.

The July 2026 report cited an industry estimate, rather than a government register showing 5,000 licensed commercial brothel premises. Since Victoria abolished its sex work licensing system in 2023, there is no longer an equivalent public licensing register that can simply be counted in the same way.

For context, Consumer Affairs Victoria reported 100 sex work service provider licensees in 2022–23, along with 494 registered brothel managers. Those figures disappeared from the register after the legislation was repealed.

That does not mean the number jumped directly from 100 premises to 5,000 premises. A licence holder and a physical brothel were not necessarily the same thing, and the newer estimate may capture a much broader range of operators, including smaller sex service businesses.

So the better question is not “Where did 5,000 new brothels come from?”

It is: why are sex service businesses now much more visible across Melbourne?

Why Melbourne’s Suburbs Are Seeing More Sex Service Businesses

One major reason is planning reform.

Victoria’s Department of Transport and Planning says a sex services business is now treated more like other businesses providing personal services. In planning terms, a sex services business can operate where a shop can operate, subject to the normal planning rules that apply to the site.

You can read the official Victorian Government planning guidance on sex work decriminalisation.

This helps explain why adult businesses are becoming more noticeable outside the areas traditionally associated with Melbourne nightlife.

South-east Melbourne is a good example. Someone who lives or works around Dandenong may prefer a nearby brothel Dandenong South rather than travelling into the CBD, particularly when parking, privacy and convenience matter.

The same applies in surrounding suburbs. A brothel Keysborough can appeal to people who want a local option without making a long trip across Melbourne, while venues further south serve growing residential and commercial areas.

For operators, suburban commercial locations can also offer practical advantages such as larger premises, easier vehicle access and lower occupancy costs than prime inner-city areas.

The result is a more geographically spread-out industry.

Decriminalised Does Not Mean Unregulated

This is probably the biggest misunderstanding around the reforms.

Removing the old brothel licensing system did not remove the law.

Sex work businesses still have to comply with workplace health and safety laws. WorkSafe Victoria regulates occupational health and safety across Victorian sex work operations in the same way it regulates other workplaces. Employers still have duties to provide a safe working environment and manage workplace risks.

Planning and building requirements can also still apply depending on the property and proposed use. Local councils have not disappeared from the process simply because the old brothel-specific planning restrictions were removed.

Criminal laws also continue to apply. Decriminalisation covers consensual adult sex work. Offences involving children, coercion, trafficking and non-consensual activity remain offences.

In simple terms:

What Does This Mean for Someone Choosing a Brothel in Melbourne?

More choice does not automatically mean every venue offers the same experience.

Without the old licensing system acting as an obvious dividing line, customers need to judge businesses more on how professionally they actually operate.

Look for practical signs: clear pricing, straightforward information about services, professional reception, clean facilities, privacy, respectful staff and clear boundaries around consent. A venue should make it easy to understand what you are booking rather than relying on vague advertising or surprises after you arrive.

Location matters too. For people living in Melbourne’s outer south-east, choosing a brothel Cranbourne may simply be more practical than travelling towards the city, especially for an evening appointment.

But convenience should not be the only factor. A well-run venue should also provide a clean environment, transparent communication and a professional booking process.

The important point is that “decriminalised” does not mean every venue now operates to the same standard.

Why the Industry Feels More Visible Than Before

Part of the change is physical. Sex service businesses can now operate under a broader planning framework, so they may appear in commercial areas where people did not previously expect to see them.

Part of it is also administrative.

Under the old system, people tended to think of the industry in terms of licensed brothels and registered operators. Today, the legal category is broader and the old public licensing structure no longer exists.

That makes comparisons between the old and new systems difficult.

There may genuinely be more businesses operating, but part of the apparent increase comes from the fact that smaller operators and different business models can now exist within the legal framework without fitting the old idea of a traditional licensed brothel.

So, Are There Really More Brothels in Melbourne?

Almost certainly there are more visible sex service businesses operating under a wider range of business models than under the old licensing system.

But the headline figure of more than 5,000 should be read carefully. It is an industry estimate reported by the media, not a current Victorian Government count of 5,000 conventional brothel premises.

What we can say with certainty is that the regulatory environment has changed dramatically.

Since December 2023, Melbourne brothels and other sex services businesses no longer operate through a separate licensing system. They have become part of the broader commercial landscape, with normal planning, workplace safety and business rules taking a much larger role.

For customers, that means more local choice in many parts of Melbourne. It also means there is more reason to look beyond location and consider how professionally a venue is actually run.

Looking for a Brothel in Melbourne?

With more venues operating across Melbourne, choosing based on proximity alone is not always enough.

Look for a professional environment, transparent information, privacy, cleanliness and a venue that treats both guests and workers with respect. Clear communication before the booking is usually a good sign of how the rest of the experience will be handled.

If you are considering a venue in Melbourne’s south-east, take the time to compare the location, facilities, opening hours and overall experience before making a booking. A good brothel should make the process simple, discreet and comfortable from the moment you first get in touch.