Airbnb Australia: Best Places for Investment Property

Brad Jamison | March 4, 2021

Early 2020 proved painful for Australia: devastating bushfires engulfed much of the country just before the COVID-19 pandemic arrived at its shores.

Like elsewhere in the world, travel across all Australian states and territories slowed, then ceased, as autumn arrived.

But after a series of both brief and extended lockdowns throughout the cooler months, Australians began to book holiday rentals across all markets.

For both the country and Airbnb, Australia’s emergence was welcomed news — as was Australia’s exemplary handling of the pandemic.

While the threat of infections is still very real, Australians have overwhelmingly complied with safety measures, enabling them to confidently book holiday homes across all markets.

Increased demand has contributed to year-over-year revenue growth for hosts. So, what does this mean for Airbnb holiday lettings in Australia and elsewhere?

Why Should You Consider an Airbnb Investment Property in 2021?

Australia is confidently emerging from 2020’s unprecedented social, economic, and public health challenges. While it will take time to fully recover, holiday house bookings show that — at least — one sector is on the path to recovery. Here’s why that’s excellent news for Airbnb investment property opportunities.

  1. The demand is there. Australians were cooped up and socially distanced for several months in 2020. While the country navigated the pandemic better than most, Australians are ready to further explore their country.
  2. Interest rates are incredibly low. Just like in the U.S. and elsewhere, many Australian banks are offering attractive interest rates, leading some economists to think that, with economic recovery on the rise, these rates may be at their lowest.
  3. Virtually any market may be quite profitable. Australia is somewhat of an anomaly. Of the 76 cities, towns, and destination markets listed below, each has seen rental and revenue growth year-over-year — and no market has below a B rating in MarketMinder.

    These grades are the tip of the iceberg when it comes to exploring your next investment property. Based on dozens of data points, you can explore why, for an Airbnb, Melbourne, Brisbane, and Cairns perform similarly to destinations like Fraser, Broome, Shoalhaven accommodations, and Surf Coast holiday rentals.

Let’s get into the data behind what makes Airbnb Australia investments so promising.

How AirDNA Determined Australia’s Best Places for Airbnb Property Investments

Unlike travel trends around much of the world (especially North America, Europe, and the UK) Australians travelled far, wide, and into urban centres.

While other western countries grappled with containing outbreaks in population centres, Australia’s handling meant that it was relatively safe for travellers to explore different markets.

Still, with outbreaks in different states and territories throughout the year, Australians rolled with last-minute restrictions and cancellation policies. Destination, rural, mid-size, and urban markets all saw increases in:

Rental Demand: How often are rentals booked throughout the year? We couple annual occupancy with booked listing growth rates to reveal relative travel demand. High score = high demand.

Revenue Growth: Did Airbnb listings in Australia earn more this month than the same month of the previous year? We determine this by calculating the year-over-year RevPAR change for properties that received bookings during each period.

 

Big Cities Don’t Always Equal Bigger Airbnb Demand

Remember: population size doesn’t completely align with the number of available listings. For Airbnb, Sydney, Melbourne, Brisbane, and Perth may have the largest markets, but they don’t necessarily reflect the largest demand growth. While these cities did see growth, other, smaller markets saw traveller demand increase in greater numbers.

Here’s how we broke it down:

Small markets: 25 to 100 listings
Medium markets: 101 to 1000 listings
Large markets: 1000+ listings 

And here are the locations that came out on top.

Australia’s Airbnb Investment Property Data: Small Markets

CityActive ListingsRental DemandRental GrowthAirDNA Index
Warrumbungle418810093.9
Broken Hill54938991.4
Upper Hunter32819989.6
Cabonne98839388.2
Upper Lachlan Shire Council62789887.6
Plantagenet347510087.4
Clare40957987.3
Wollondilly Shire Council457410087.1
Kyogle Council50799386.1
Cooma Monaro42868585.6
Mundaring55719884.8
Oberon Council93699984.0
The Berri Barmera28739583.9
Blayney74709783.4
Flinders Council41749283.1
Glen Innes Severn34828482.9
Hawkesbury97699682.7
Rockhampton90848182.1
Tenterfield476410082.0
Yass Valley Council66689581.6
Bunbury55818281.3
Goulburn Mulwaree95807979.5
Swan Hill Rural City30798079.2
Southern Grampians91718578.0
Auburn29589877.9

Australia’s Airbnb Investment Property Data: Medium Markets

CityActive ListingsRental DemandRental GrowthAirDNA Index
Mid-Western Regional426919794.1
Dungog129859891.4
Esperance136948891.0
Denmark206958690.7
Bellingen248909190.5
Albany City Council365928890.3
Orange299899089.6
Northampton194918889.6
Port Lincoln147938689.4
Northern Grampians250829287.1
Broome131839086.6
Lithgow146878686.5
Fraser Coast534838985.7
Kangaroo Island429878385.1
Mackay196908084.9
Lismore192769384.7
Dubbo Regional Council125917884.6
Nambucca245808683.2
Kiama736778983.2
Scenic Rim282818582.9
Geraldton Region161848082.0
Lake Macquarie538768881.7
Gympie343679681.3
Greater Taree283728980.9
Augusta Margaret River977827980.8

Australia’s Airbnb Investment Property Data: Large Markets

CityActive ListingsRental DemandRental GrowthAirDNA Index
Great Lakes1556829186.5
Byron3189838785.0
Blue Mountains1239729483.0
Busselton1695787878.1
Shoalhaven City Council4231688777.9
Snowy River1044589676.8
Sunshine Coast6217767676.0
Wyong2745688375.2
Colac Otway1035678375.1
Port Stephens Council1882589274.8
Tweed1312737574.1
Eurobodalla1162678274.1
Surf Coast1961588269.9
Brisbane5194706869.4
Geelong1525627367.6
Bega Valley1034488566.4
Gold Coast6511597265.6
Bass Coast2458518065.4
Adelaide3237695562.1
Cairns1753615959.8
Australian Capital Territory1009853459.5
Alpine Shire1025368057.9
Perth3804802853.6
Melbourne15878545253.0
Douglas1070386451.1
Sydney15758551936.7

Will Holiday Homes’ Demand Continue to Increase for Airbnb Australia?

If 2020 taught the world anything, it’s that nothing is completely certain. However, the data clearly confirms that Australians are eager to continue travelling.

And, as vaccine distribution increases, more Australians will take to their cars and flock to airports for unique holiday lettings across the country.

The only question is, will you have your Airbnb investment property ready for them when the time comes? We have the data to help you make it happen.

Find the Right Market for Your Airbnb Investment Property

No matter where you’re considering for your Airbnb rental, Australia offers solid markets with tons of growth potential. Use MarketMinder to get the metrics you need to determine if it’s the right location for your goals.

You’ll get clear data on occupancy rates, amenities, and other essential metrics to plan your Airbnb pricing strategy.

Airbnb Adelaide in MarketMinder

If you have the fortune of multiple opportunities, explore AirDNA’s Market Comparison tool. This powerful platform lets you easily compare and analyze up to four markets side-by-side. Evaluate occupancy rates, revenue, and ADR.

Airbnb Byron Bay and other Australian markets in AirDNA’s Market Comparison tool

Discover How Much Your Airbnb Investment Property Could Earn with the Holiday Rental Calculator 

If you already have a specific property in mind and want to know how much it could earn, turn to AirDNA’s easy-to-use Rentalizer tool. Just enter your address, bedroom count, and the number of guests, and quickly get clear insight into your revenue potential. 

See what any address could earn as a short-term rental.

Short-term rentals earn up to three times more than traditional long-term rentals. By analyzing the booking activity of over 10 million vacation rentals globally, Rentalizer can predict what any home around the world would earn as a vacation rental.

View comparable rental properties, seasonal trends, and occupancy projections all in one simple report.

Take a Deeper Data Dive: Get the Full Airbnb Australia Report

Looking for more market data, metrics, or custom reports? Just reach out to us and we’ll get you the downloadable data you need to confidently pursue your Airbnb investment.

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