Discover the top 10 Airbnb markets in Australia and learn why investing in Australian Airbnb properties is lucrative in this comprehensive guide to the thriving Australian short-term rental market.

Investing in Australian Airbnb properties offers promising returns due to growing tourism, demand for alternative accommodations, and clear regulatory frameworks.

The Australian Airbnb rental market experiences fluctuations influenced by seasonality, weather patterns, and holidays.

Australia boasts a variety of profitable Airbnb investment locations, ranging from vibrant cities to scenic coastal destinations. 

With breathtaking landscapes, vibrant cities, and diverse culture, Australia has emerged as a hotspot for property investors seeking lucrative opportunities in the vacation rental market. As the demand for unique and immersive travel experiences continues to rise, savvy investors are turning to Airbnb properties as a means to capitalize on this trend. 

In this article, we dive into the realm of Australian real estate, uncovering the top 10 most profitable Airbnb locations in Australia. You’ll also learn about the benefits of investing in the Australian STR market and which vacation rental channels the Aussies use and love most.

AirDNA makes hosting and investing a breeze. Every insight you need, all in one place, always up-to-date.

From vibrant cities with bustling central business districts to serene coastal getaways with beautiful beaches, Australia boasts a variety of lucrative destinations for short-term rentals. 

We’ve ranked the  top 10 most profitable Airbnb locations in Australia by AirDNA Market Score, revealing the best locations where investors can maximize returns amidst the nation's bustling tourism scene.

AirDNA’s Market Score is a unique score that tells you how well a market is performing out of 100 based on 4 different factors:

Rental Demand: Rental demand measures how popular a market is in terms of bookings. The rental demand score shows how booking performance has changed from the same time last year. A high score indicates high booking demand.

Revenue Growth: This factor measures whether rental listings in this location earned more this month than they did during the same month last year. We calculate this by measuring year-over-year (YOY) change in Revenue per Available Rental (RevPAR).

Seasonality: This factor considers how much seasonality affects a market. In other words, are bookings made at specific times of the year or are they consistent month after month? A high score indicates low seasonality and consistent bookings.

Regulation: Our regulation score measures how strictly short-term rentals are regulated in a given market. A high score means fewer regulations. 

These 4 factors are synthesized to create one overall Market Score.

In cases where the top airbnb locations in Australia share the same market score, we used the projected net return on investment (ROI) as a dealbreaker.

The net ROI takes into account both operating costs and home prices to give a more realistic estimate of potential profits. We use a 50% expense ratio in our ROI calculation, which assumes that owners will spend half of their earned revenue on running their vacation rental business. Note that revenue potential figures are based on annual yield if a property is listed year-round. In reality, though, the majority of short-term rental owners are not offering their properties 365 days per year. Most hosts’ earned revenue will fall short of these projected revenue numbers.

The capital and largest city of Western Australia, Perth is nestled on the scenic Swan River. With a unique blend of urban sophistication and natural beauty, the city is a magnet for travelers seeking sun-soaked adventures. 

For investors eyeing the Airbnb market, Perth shines brightly with a relatively low average home value. Perth boasts the highest average occupancy rate (77%) in the country. With a daily rate averaging $223 and a remarkable RevPAR of $163.90, Perth emerges as the most compelling destination for short-term vacation rental investment in Australia.

Brisbane, the capital of Queensland, sits along the picturesque Brisbane River, offering a vibrant blend of urban sophistication and laid-back charm. Nestled between the Gold Coast and the Sunshine Coast, Brisbane boasts a subtropical climate, world-class dining, and an array of cultural events and attractions, making it a sought-after destination for travelers from around the globe. 

The city presents an enticing opportunity for investors eyeing Brisbane’s STR market. While the median home value tops $800,000, hosts can expect a respectable average occupancy rate of 65%, a daily rate averaging $264 and an impressive RevPAR of $165.50.

Whitsunday, a tropical paradise nestled in the heart of the Great Barrier Reef, beckons with its pristine beaches, crystal-clear waters, and lush rainforests. Located off the coast of Queensland, this enchanting archipelago is renowned for its stunning natural beauty and abundance of marine life, making it a magnet for travelers seeking idyllic island getaways. 

Whitsunday is one of the best locations in Australia for Airbnb investors. With an impressive average occupancy rate of 72% (the second highest in the country), Whitsunday offers a lucrative opportunity for property investment in the thriving short-term rental market. This island destination also stands apart by boasting the highest average daily rate of $620 and the highest RevPAR at $427.10.

The Australian Capital Territory (ACT), home to Australia's capital city, Canberra, offers a captivating blend of culture, history, and natural beauty. Nestled amidst picturesque bushland and rolling hills, Canberra boasts a vibrant arts scene, world-class museums, and iconic landmarks, making it a compelling destination for travelers seeking enriching experiences. 

Investors keen on tapping into the ACT’s Airbnb market have an intriguing opportunity with an occupancy rate of 62% and solid performance metrics. With an average daily rate of $219 and a RevPAR of $129.20, the ACT showcases its potential as a promising investment destination for those looking to capitalize on the capital's allure.

Nestled in the heart of Western Australia's stunning Margaret River region, Augusta Margaret River beckons tourists with its rugged coastline, lush vineyards, and towering karri forests. Renowned for its world-class wineries, stunning beaches, and outdoor adventures, this picturesque destination offers a perfect blend of relaxation and exploration for travelers seeking a taste of the good life. 

Boasting an occupancy rate of 68%, the Augusta Margaret River region has demonstrated its capacity to attract visitors again and again. Paired with an average daily rate of $359 and an impressive RevPAR of $228.60, Augusta Margaret River is a prospect for would-be Airbnb hosts that’s worth checking out.

The iconic harbor city of Sydney captivates visitors with its dazzling skyline, world-famous landmarks, and vibrant cultural scene. From the Sydney Opera House to the golden sands of Bondi Beach, this cosmopolitan metropolis offers a wealth of experiences for travelers seeking urban excitement and coastal charm. 

While Sydney’s barrier to entry is high with a median home value surpassing $1,000,000, it remains a compelling short-term rental market with promising revenue potential and strong performance metrics. The city has demonstrated its allure to visitors with an average occupancy rate of 67%, an average daily rate of $335, and a robust RevPAR of $217.70.

On the stunning coastline of New South Wales, Newcastle offers world-class beaches, a vibrant arts scene, and laid-back coastal charm. As one of Australia's oldest cities, Newcastle blends historic architecture with modern amenities, offering visitors a unique blend of culture and relaxation. 

Despite having the lowest occupancy rate among the top 10 Airbnb markets in Australia, Newcastle boasts a high average daily rate of $319 and a respectable RevPAR of $182.20. Whether it's soaking up the sun on Newcastle Beach or exploring the city's thriving dining and entertainment scene, Airbnb investors can capitalize on the city's coastal allure for sustainable STR returns and long-term growth.

Located in Tasmania, Australia’s southernmost island, Hobart invites visitors to discover its rich history and breathtaking natural beauty. From the historic streets of Salamanca Place to the towering peaks of Mount Wellington, Hobart offers a myriad of experiences for travelers seeking adventure and culture—and maybe a Tasmanian devil sighting!

Despite its relatively low average daily rate of $280 compared to other top destinations, Hobart boasts a respectable RevPAR of $178.80 and a solid occupancy rate of 67%. 

Set against the backdrop of South Australia's rolling hills and vineyard-dotted landscapes, Adelaide beckons tourists with its blend of cultural sophistication and laid-back charm. From the bustling streets of Rundle Mall to the serene parklands of Adelaide Hills, the city offers a diverse array of experiences for travelers seeking a taste of Australian hospitality. 

Despite a relatively lower occupancy rate of 62%, Adelaide showcases its potential as an Airbnb investment hotspot with solid performance metrics. For example, Adelaide Airbnb hosts see average daily rates of $291 and a respectable RevPAR of $169.50. 

Along the sun-kissed shores of Queensland lies the Gold Coast, a vibrant playground renowned for its golden beaches, iconic skyline, and adrenaline-fueled attractions. From the glittering skyscrapers of Surfers Paradise to the lush hinterland of Lamington National Park, the region offers travelers an irresistible blend of coastal beauty and urban excitement. 

With a solid occupancy rate of 67%, the Gold Coast demonstrates its allure to travelers. Notably, the city boasts the second-highest average daily rate among the top 10 Airbnb markets in Australia, standing at $299. With a RevPAR of $258.10, the Gold Coast shines as a lucrative investment destination in the Airbnb market. 

We’ve ranked Australian markets based on their overall performance—as represented by their AirDNA Market Score—but the top 10 rankings shift if you look at revenue alone. 

Perhaps unsurprisingly, the Whitsunday islands off the coast of Queensland have the highest earning potential at $164,200. This is likely due to the area being a renowned tourist destination and the natural geography limiting the number of accommodations available in comparison to more urban areas. 

Perth, which is number one overall for market performance, falls to ninth place for revenue potential with a more modest yearly income of $60,000. 

Across all locations, however, the actual revenue earned by hosts in the last 12 months falls short of their earning potential. This discrepancy between potential and actual revenue comes down to the number of days that the rental is available. Hosts who offer their properties year-round are more likely to maximize their revenue. In reality, though, the majority of short-term rental owners are not offering their properties 365 days per year. 

Australia's unique geography and diverse climate contribute to a dynamic vacation rental market influenced by seasonality, weather patterns, and holidays. With its vast expanse spanning from the tropical north to the temperate south, the Land Down Under experiences a range of climatic conditions throughout the year, shaping traveler preferences and rental demand.

It’s no surprise that Australia’s high season (roughly December through February) coincides with its summer season. In summertime, Australia truly is the lucky country where visitors can expect spectacular festivals in Melbourne and Sydney, cloudless days on the Sunshine Coast, and vibrant coral blooms on the Great Barrier Reef. 

Of course, the high summer season isn’t the only good time to travel. Given the country’s relatively temperate climate, the wintertime still attracts plenty of travelers. In fact, winter sees a spike in popularity for destinations like the Snowy Mountains and Victorian High Country, where snow enthusiasts seek out alpine adventures and cozy mountain retreats.

In addition to seasonal fluctuations, Australian holidays play a significant role in shaping the short-term rental industry. Major holidays such as Christmas, New Year's Eve, Australia Day (January 26), Easter, and school holidays drive peak travel periods and heightened demand for accommodation. Coastal regions and popular tourist destinations experience a surge in bookings during these times, as families and holidaymakers embark on vacations and weekend getaways.

Why Should You Invest in Airbnb Properties in Australia?

Although the Australian travel industry took a pandemic-induced hit between 2020 and 2021, tourism in Australia has been growing since. While interest rates in the country are high as of publication in 2024, Aussies are still traveling domestically (and the country is seeing growth in international tourism, too). In fact, according to Forbes, higher interest rates on savings are helping to increase discretionary funds for many Australians, who are in turn choosing to spend more on travel. 

According to Julie George, the author of Million Dollar Host, “the STR industry in Australia is alive and well amidst the regulations brewing in some geographic locations.”

However, vigilance is key, as is always the case in STR investing. “It is important to be vigilant of the new rules certain areas are imposing and do your due diligence when considering investing in short-term rental properties,” George says. “I encourage all real estate investors to investigate the supply and demand in areas of interest and research the potential return on investment by using AirDNA. This software is easy to use, offers incredible value, and will be life-changing if it can help identify your next investment property.”

Here’s a breakdown of some of the biggest potential benefits of investing in Airbnb properties in Australia: 

According to a report published by the Australian Trade and Investment Commission, domestic tourism spending has already exceeded pre-pandemic levels and will continue to rise. Meanwhile, international travel is growing too. International travel to Australia is expected to exceed pre-pandemic levels by 2025, while international traveler spend in the country should exceed pre-pandemic levels sometime this year in 2024.

Travelers Want Alternative Accommodations 

Another primary reason to consider investing in Airbnb properties in Australia is the strong and growing demand for alternative accommodations. As travelers increasingly seek unique and immersive experiences, the traditional hotel model is being disrupted by the rise of vacation rentals. 

Airbnb offers something for every type of traveler, whether guests want to rent entire houses or just private rooms on a budget. Plus, Airbnb gives travelers the chance to stay in local neighborhoods, enjoy personalized accommodation experiences, and live like a local, fostering a sense of authenticity and connection that traditional accommodations often lack.

Australia boasts a stable and transparent legal framework governing the short-term rental market, providing investors with confidence and security in their Airbnb investment property. 

With clear regulations in place, investors can navigate the market with ease and ensure compliance with local laws and regulations. Furthermore, the proliferation of online platforms and booking channels makes it easier than ever for property owners to market their rentals, attract guests, and manage bookings efficiently.

Plenty of Profitable Airbnb Locations to Go Around 

When it comes to profitable Airbnb investing in Australia, you really can’t go wrong with any location Down Under. The majority of cities and destination markets in Australia have seen rental and revenue growth year-over-year.

Understand the investment potential of any address in the world. 

Most Popular Vacation Rental Channels in Australia

In Australia's booming vacation rental market, Airbnb and Vrbo stand out as the booking platform favorites among short-term rental hosts.

Airbnb leads the pack, offering a user-friendly interface and a vast array of unique accommodations. Between these two major booking platforms, almost 70% of STRs in Australia are only listed on Airbnb.

HomeAway, now part of Vrbo, focuses on whole-home rentals and family-friendly options. 7% of vacation rentals are listed only on Vrbo, while 25% are cross-listed on both Airbnb and Vrbo.

Stayz is a local favorite, particularly for beachside retreats, while Expedia offers a comprehensive range of accommodations along with travel booking services. Booking.com is also prominent, known for its extensive inventory and easy booking process. 

These platforms provide hosts with global exposure and guests with diverse options, shaping the vibrant taylandscape of Airbnb rentals in Australia.

In Australia, the majority of Airbnb guests are domestic locals—but the country sees plenty of international Airbnb guests, too. In 2023, just over three quarters (76.8%) of reviews on Airbnbs in Australia were written by domestic travelers. Other major origins for travelers included the United Kingdom (4.6%), United States (3.9%), New Zealand (2.3%), Singapore (1.8%), and Canada (1.3%).

Australia’s holiday rental industry relies heavily on domestic tourism. Spikes in domestic guests coincide with public school’s Term 1, Term 2, Term 3, and Term 4 holidays, which fall during the months of April, July, October, and December/January, respectively. During these periods of time, domestic guests make up approximately 90% of total travelers.

On the other hand, international tourists are most likely to book short-term rentals in Australia during the months of March, November, December, and January. Travelers from other countries make up about 20-30% of total guests during these times of the year. While the number of international short-term rental guests has declined since the 2020 COVID pandemic, rates are approaching pre-pandemic levels. 

Are you ready to tap into Australia’s growing short-term rental market? Let AirDNA help you find the right property for your vacation rental business.

Gain insights into the revenue and occupancy trends in your market.

Explore the top 10 Airbnb markets in Australian and why now is the time to invest in Airbnb properties in Australia.

The Top 10 Airbnb Markets in Australia

Key Takeaways:
Investing in Australian Airbnb properties offers promising returns due to growing tourism, demand for alternative accommodations, and clear regulatory frameworks.
The Australian Airbnb rental market experiences fluctuations influenced by seasonality, weather patterns, and holidays.
Australia boasts a variety of profitable Airbnb investment locations, ranging from vibrant cities to scenic coastal destinations. 

With breathtaking landscapes, vibrant cities, and diverse culture, Australia has emerged as a hotspot for property investors seeking lucrative opportunities in the vacation rental market. As the demand for unique and immersive travel experiences continues to rise, savvy investors are turning to Airbnb properties as a means to capitalize on this trend. 

In this article, we dive into the realm of Australian real estate, uncovering the top 10 most profitable Airbnb locations in Australia. You’ll also learn about the benefits of investing in the Australian STR market and which vacation rental channels the Aussies use and love most.

Smart investments happen here.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

Start exploring for free
Top 10 Airbnb Markets in Australia

From vibrant cities with bustling central business districts to serene coastal getaways with beautiful beaches, Australia boasts a variety of lucrative destinations for short-term rentals. 

Methodology

We’ve ranked the  top 10 most profitable Airbnb locations in Australia by AirDNA Market Score, revealing the best locations where investors can maximize returns amidst the nation's bustling tourism scene.

AirDNA’s Market Score is a unique score that tells you how well a market is performing out of 100 based on 4 different factors:

Rental Demand: Rental demand measures how popular a market is in terms of bookings. The rental demand score shows how booking performance has changed from the same time last year. A high score indicates high booking demand.
Revenue Growth: This factor measures whether rental listings in this location earned more this month than they did during the same month last year. We calculate this by measuring year-over-year (YOY) change in Revenue per Available Rental (RevPAR).
Seasonality: This factor considers how much seasonality affects a market. In other words, are bookings made at specific times of the year or are they consistent month after month? A high score indicates low seasonality and consistent bookings.
Regulation: Our regulation score measures how strictly short-term rentals are regulated in a given market. A high score means fewer regulations. 

These 4 factors are synthesized to create one overall Market Score.

Note that the Market Score for U.S. locations takes into account a fifth factor, Investability. Investability considers whether a market presents a good investment opportunity. The investability score is calculated by measuring average revenue potential against average mortgage cost.

1. Perth

Average Home Value: $660,000
Occupancy: 77%
Average Daily Rate: $223

The capital and largest city of Western Australia, Perth is nestled on the scenic Swan River. With a unique blend of urban sophistication and natural beauty, the city is a magnet for travelers seeking sun-soaked adventures. 

For investors eyeing the Airbnb market, Perth shines brightly with a relatively low average home value. Perth boasts the highest average occupancy rate (77%) in the country. With a daily rate averaging $223 and a remarkable RevPAR of $163.90, Perth emerges as the most compelling destination for short-term vacation rental investment in Australia.

Explore Perth

2. Brisbane

Median Home Value: $801,000
Occupancy:  65%
Average Daily Rate: $264

Brisbane, the capital of Queensland, sits along the picturesque Brisbane River, offering a vibrant blend of urban sophistication and laid-back charm. Nestled between the Gold Coast and the Sunshine Coast, Brisbane boasts a subtropical climate, world-class dining, and an array of cultural events and attractions, making it a sought-after destination for travelers from around the globe. 

The city presents an enticing opportunity for investors eyeing Brisbane’s STR market. While the median home value tops $800,000, hosts can expect a respectable average occupancy rate of 65%, a daily rate averaging $264 and an impressive RevPAR of $165.50.

Explore Brisbane

3. Whitsunday

Occupancy: 72%
Average Daily Rate: $620
RevPAR: $427.10

Whitsunday, a tropical paradise nestled in the heart of the Great Barrier Reef, beckons with its pristine beaches, crystal-clear waters, and lush rainforests. Located off the coast of Queensland, this enchanting archipelago is renowned for its stunning natural beauty and abundance of marine life, making it a magnet for travelers seeking idyllic island getaways. 

Whitsunday is one of the best locations in Australia for Airbnb investors. With an impressive average occupancy rate of 72% (the second highest in the country), Whitsunday offers a lucrative opportunity for property investment in the thriving short-term rental market. This island destination also stands apart by boasting the highest average daily rate of $620 and the highest RevPAR at $427.10.

Explore Whitsunday

4. Australian Capital Territory

Occupancy: 62%
Average daily rate: $219
RevPAR: $129.20

The Australian Capital Territory (ACT), home to Australia's capital city, Canberra, offers a captivating blend of culture, history, and natural beauty. Nestled amidst picturesque bushland and rolling hills, Canberra boasts a vibrant arts scene, world-class museums, and iconic landmarks, making it a compelling destination for travelers seeking enriching experiences. 

Investors keen on tapping into the ACT’s Airbnb market have an intriguing opportunity with an occupancy rate of 62% and solid performance metrics. With an average daily rate of $219 and a RevPAR of $129.20, the ACT showcases its potential as a promising investment destination for those looking to capitalize on the capital's allure.

Explore Australian Capital Territory

5. Augusta Margaret River

Occupancy: 68%
Average daily rate: $359
RevPAR: $228.60

Nestled in the heart of Western Australia's stunning Margaret River region, Augusta Margaret River beckons tourists with its rugged coastline, lush vineyards, and towering karri forests. Renowned for its world-class wineries, stunning beaches, and outdoor adventures, this picturesque destination offers a perfect blend of relaxation and exploration for travelers seeking a taste of the good life. 

Boasting an occupancy rate of 68%, the Augusta Margaret River region has demonstrated its capacity to attract visitors again and again. Paired with an average daily rate of $359 and an impressive RevPAR of $228.60, Augusta Margaret River is a prospect for would-be Airbnb hosts that’s worth checking out.

Explore Augusta Margaret River

6. Sydney

Median home value: $1,069,000
Occupancy: 67%
Average daily rate: $335
RevPAR: $217.70

The iconic harbor city of Sydney captivates visitors with its dazzling skyline, world-famous landmarks, and vibrant cultural scene. From the Sydney Opera House to the golden sands of Bondi Beach, this cosmopolitan metropolis offers a wealth of experiences for travelers seeking urban excitement and coastal charm. 

While Sydney’s barrier to entry is high with a median home value surpassing $1,000,000, it remains a compelling short-term rental market with promising revenue potential and strong performance metrics. The city has demonstrated its allure to visitors with an average occupancy rate of 67%, an average daily rate of $335, and a robust RevPAR of $217.70.

Explore Sydney

7. Newcastle

Occupancy: 59%
Average daily rate: $319
RevPAR: $182.20

On the stunning coastline of New South Wales, Newcastle offers world-class beaches, a vibrant arts scene, and laid-back coastal charm. As one of Australia's oldest cities, Newcastle blends historic architecture with modern amenities, offering visitors a unique blend of culture and relaxation. 

Despite having the lowest occupancy rate among the top 10 Airbnb markets in Australia, Newcastle boasts a high average daily rate of $319 and a respectable RevPAR of $182.20. Whether it's soaking up the sun on Newcastle Beach or exploring the city's thriving dining and entertainment scene, Airbnb investors can capitalize on the city's coastal allure for sustainable STR returns and long-term growth.

Explore Newcastle

8. Hobart

Median home value: $662,000
Occupancy: 67%
Average daily rate: $280
RevPAR: $178.80

Located in Tasmania, Australia’s southernmost island, Hobart invites visitors to discover its rich history and breathtaking natural beauty. From the historic streets of Salamanca Place to the towering peaks of Mount Wellington, Hobart offers a myriad of experiences for travelers seeking adventure and culture—and maybe a Tasmanian devil sighting!

Despite its relatively low average daily rate of $280 compared to other top destinations, Hobart boasts a respectable RevPAR of $178.80 and a solid occupancy rate of 67%. 

Explore Hobart

9. Adelaide

Median home value: $723,000
Occupancy: 62%
Average daily rate: $291
RevPAR: $169.50

Set against the backdrop of South Australia's rolling hills and vineyard-dotted landscapes, Adelaide beckons tourists with its blend of cultural sophistication and laid-back charm. From the bustling streets of Rundle Mall to the serene parklands of Adelaide Hills, the city offers a diverse array of experiences for travelers seeking a taste of Australian hospitality. 

Despite a relatively lower occupancy rate of 62%, Adelaide showcases its potential as an Airbnb investment hotspot with solid performance metrics. For example, Adelaide Airbnb hosts see average daily rates of $291 and a respectable RevPAR of $169.50. 

Explore Adelaide

10. Gold Coast

Median home value: $801,000
Occupancy: 67%
Average daily rate: $299
RevPAR: $258.10

Along the sun-kissed shores of Queensland lies the Gold Coast, a vibrant playground renowned for its golden beaches, iconic skyline, and adrenaline-fueled attractions. From the glittering skyscrapers of Surfers Paradise to the lush hinterland of Lamington National Park, the region offers travelers an irresistible blend of coastal beauty and urban excitement. 

With a solid occupancy rate of 67%, the Gold Coast demonstrates its allure to travelers. Notably, the city boasts the second-highest average daily rate among the top 10 Airbnb markets in Australia, standing at $299. With a RevPAR of $258.10, the Gold Coast shines as a lucrative investment destination in the Airbnb market. 

Explore Gold Coast

How Rankings Change Based on Revenue

We’ve ranked Australian markets based on their overall performance—as represented by their AirDNA Market Score—but the top 10 rankings shift if you look at revenue alone. 

Perhaps unsurprisingly, the Whitsunday islands off the coast of Queensland have the highest earning potential at $164,200. This is likely due to the area being a renowned tourist destination and the natural geography limiting the number of accommodations available in comparison to more urban areas. 

Perth, which is number one overall for market performance, falls to ninth place for revenue potential with a more modest yearly income of $60,000. 

Across all locations, however, the actual revenue earned by hosts in the last 12 months falls short of their earning potential. This discrepancy between potential and actual revenue comes down to the number of days that the rental is available. Hosts who offer their properties year-round are more likely to maximize their revenue. In reality, though, the majority of short-term rental owners are not offering their properties 365 days per year. 

Australian Market Summary

Australia's unique geography and diverse climate contribute to a dynamic vacation rental market influenced by seasonality, weather patterns, and holidays. With its vast expanse spanning from the tropical north to the temperate south, the Land Down Under experiences a range of climatic conditions throughout the year, shaping traveler preferences and rental demand.

It’s no surprise that Australia’s high season (roughly December through February) coincides with its summer season. In summertime, Australia truly is the lucky country where visitors can expect spectacular festivals in Melbourne and Sydney, cloudless days on the Sunshine Coast, and vibrant coral blooms on the Great Barrier Reef. 

Of course, the high summer season isn’t the only good time to travel. Given the country’s relatively temperate climate, the wintertime still attracts plenty of travelers. In fact, winter sees a spike in popularity for destinations like the Snowy Mountains and Victorian High Country, where snow enthusiasts seek out alpine adventures and cozy mountain retreats.

In addition to seasonal fluctuations, Australian holidays play a significant role in shaping the short-term rental industry. Major holidays such as Christmas, New Year's Eve, Australia Day (January 26), Easter, and school holidays drive peak travel periods and heightened demand for accommodation. Coastal regions and popular tourist destinations experience a surge in bookings during these times, as families and holidaymakers embark on vacations and weekend getaways.

Why Should You Invest in Airbnb Properties in Australia?

Although the Australian travel industry took a pandemic-induced hit between 2020 and 2021, tourism in Australia has been growing since. While interest rates in the country are high as of publication in 2024, Aussies are still traveling domestically (and the country is seeing growth in international tourism, too). In fact, according to Forbes, higher interest rates on savings are helping to increase discretionary funds for many Australians, who are in turn choosing to spend more on travel. 

According to Julie George, the author of Million Dollar Host, “the STR industry in Australia is alive and well amidst the regulations brewing in some geographic locations.”

However, vigilance is key, as is always the case in STR investing. “It is important to be vigilant of the new rules certain areas are imposing and do your due diligence when considering investing in short-term rental properties,” George says. “I encourage all real estate investors to investigate the supply and demand in areas of interest and research the potential return on investment by using AirDNA. This software is easy to use, offers incredible value, and will be life-changing if it can help identify your next investment property.”

Here’s a breakdown of some of the biggest potential benefits of investing in Airbnb properties in Australia: 

Demand Is Growing

According to a report published by the Australian Trade and Investment Commission, domestic tourism spending has already exceeded pre-pandemic levels and will continue to rise. Meanwhile, international travel is growing too. International travel to Australia is expected to exceed pre-pandemic levels by 2025, while international traveler spend in the country should exceed pre-pandemic levels sometime this year in 2024.

Travelers Want Alternative Accommodations 

Another primary reason to consider investing in Airbnb properties in Australia is the strong and growing demand for alternative accommodations. As travelers increasingly seek unique and immersive experiences, the traditional hotel model is being disrupted by the rise of vacation rentals. 

Airbnb offers something for every type of traveler, whether guests want to rent entire houses or just private rooms on a budget. Plus, Airbnb gives travelers the chance to stay in local neighborhoods, enjoy personalized accommodation experiences, and live like a local, fostering a sense of authenticity and connection that traditional accommodations often lack.

Compare Airbnb markets

Regulations Are Clear

Australia boasts a stable and transparent legal framework governing the short-term rental market, providing investors with confidence and security in their Airbnb investment property. 

With clear regulations in place, investors can navigate the market with ease and ensure compliance with local laws and regulations. Furthermore, the proliferation of online platforms and booking channels makes it easier than ever for property owners to market their rentals, attract guests, and manage bookings efficiently.

Plenty of Profitable Airbnb Locations to Go Around 

When it comes to profitable Airbnb investing in Australia, you really can’t go wrong with any location Down Under. The majority of cities and destination markets in Australia have seen rental and revenue growth year-over-year.

Calculate potential earnings

Understand the investment potential of any address in the world. 

See your STR revenue potential
Most Popular Vacation Rental Channels in Australia

In Australia's booming vacation rental market, Airbnb and Vrbo stand out as the booking platform favorites among short-term rental hosts.

Airbnb leads the pack, offering a user-friendly interface and a vast array of unique accommodations. Between these two major booking platforms, almost 70% of STRs in Australia are only listed on Airbnb.

HomeAway, now part of Vrbo, focuses on whole-home rentals and family-friendly options. 7% of vacation rentals are listed only on Vrbo, while 25% are cross-listed on both Airbnb and Vrbo.

Stayz is a local favorite, particularly for beachside retreats, while Expedia offers a comprehensive range of accommodations along with travel booking services. Booking.com is also prominent, known for its extensive inventory and easy booking process. 

These platforms provide hosts with global exposure and guests with diverse options, shaping the vibrant taylandscape of Airbnb rentals in Australia.

Learn about short-term rental data

Where Airbnb Guests Are Traveling From

In Australia, the majority of Airbnb guests are domestic locals—but the country sees plenty of international Airbnb guests, too. In 2023, just over three quarters (76.8%) of reviews on Airbnbs in Australia were written by domestic travelers. Other major origins for travelers included the United Kingdom (4.6%), United States (3.9%), New Zealand (2.3%), Singapore (1.8%), and Canada (1.3%).

Australia’s holiday rental industry relies heavily on domestic tourism. Spikes in domestic guests coincide with public school’s Term 1, Term 2, Term 3, and Term 4 holidays, which fall during the months of April, July, October, and December/January, respectively. During these periods of time, domestic guests make up approximately 90% of total travelers.

On the other hand, international tourists are most likely to book short-term rentals in Australia during the months of March, November, December, and January. Travelers from other countries make up about 20-30% of total guests during these times of the year. While the number of international short-term rental guests has declined since the 2020 COVID pandemic, rates are approaching pre-pandemic levels. 

Are you ready to tap into Australia’s growing short-term rental market? Let AirDNA help you find the right property for your vacation rental business.

The Top 10 Airbnb Markets in Australia

ARTICLE SUMMARY

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