The 46-year-old took to the stage for just over an hour and a half at Melbourne's Rod Laver Arena, where the top tickets cost $195, despite widespread claims that she could no longer live up to the demands of a world-class show. She was breathless in parts and turned the microphone over to the audience to hit the high notes.

A flood of disappointed audience members poured out of the stadium, many grappling with buyer's remorse for paying so much for their ticket.

Long-time fans Bianca Allaway and Natasha Majkic, both 26, left even before Houston began belting out her most popular hit, I Will Always Love You.

"It was the worst concert ever," Ms Allaway said.

Laurie and Vicki Caulfield praised Houston's first few numbers. "The first part, when she was singing her new songs, was good," Ms Caulfield said.

But her husband said Houston's regular breaks and 15 minute costume changes killed the atmosphere. "We went in with an open mind but it really was as terrible as everyone said it was."

It is Houston's first tour in a decade and her first to Australia in 22 years. In her early years, she made her name with a string of hits but after her struggles with substance abuse Houston has battled to regain her glory. Her imperfect singing, lack of stamina and poor health have all been noted on this tour, which began in Brisbane last week.

Local promoter Andrew McManus went to ground yesterday, failing to return calls and emails ahead of Houston's Melbourne concert. He has reportedly refused to refund tickets.

Houston is due to play in Adelaide on Thursday before returning to Melbourne on Saturday for a concert where the top price is $285.