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.
- 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.
- 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.
- 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
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
|City||Active Listings||Rental Demand||Rental Growth||AirDNA Index|
|Upper Lachlan Shire Council||62||78||98||87.6|
|Wollondilly Shire Council||45||74||100||87.1|
|The Berri Barmera||28||73||95||83.9|
|Glen Innes Severn||34||82||84||82.9|
|Yass Valley Council||66||68||95||81.6|
|Swan Hill Rural City||30||79||80||79.2|
Australia’s Airbnb Investment Property Data: Medium Markets
City Active Listings Rental Demand Rental Growth AirDNA Index
Mid-Western Regional 426 91 97 94.1
Dungog 129 85 98 91.4
Esperance 136 94 88 91.0
Denmark 206 95 86 90.7
Bellingen 248 90 91 90.5
Albany City Council 365 92 88 90.3
Orange 299 89 90 89.6
Northampton 194 91 88 89.6
Port Lincoln 147 93 86 89.4
Northern Grampians 250 82 92 87.1
Broome 131 83 90 86.6
Lithgow 146 87 86 86.5
Fraser Coast 534 83 89 85.7
Kangaroo Island 429 87 83 85.1
Mackay 196 90 80 84.9
Lismore 192 76 93 84.7
Dubbo Regional Council 125 91 78 84.6
Nambucca 245 80 86 83.2
Kiama 736 77 89 83.2
Scenic Rim 282 81 85 82.9
Geraldton Region 161 84 80 82.0
Lake Macquarie 538 76 88 81.7
Gympie 343 67 96 81.3
Greater Taree 283 72 89 80.9
Augusta Margaret River 977 82 79 80.8
Australia’s Airbnb Investment Property Data: Large Markets
City Active Listings Rental Demand Rental Growth AirDNA Index
Great Lakes 1556 82 91 86.5
Byron 3189 83 87 85.0
Blue Mountains 1239 72 94 83.0
Busselton 1695 78 78 78.1
Shoalhaven City Council 4231 68 87 77.9
Snowy River 1044 58 96 76.8
Sunshine Coast 6217 76 76 76.0
Wyong 2745 68 83 75.2
Colac Otway 1035 67 83 75.1
Port Stephens Council 1882 58 92 74.8
Tweed 1312 73 75 74.1
Eurobodalla 1162 67 82 74.1
Surf Coast 1961 58 82 69.9
Brisbane 5194 70 68 69.4
Geelong 1525 62 73 67.6
Bega Valley 1034 48 85 66.4
Gold Coast 6511 59 72 65.6
Bass Coast 2458 51 80 65.4
Adelaide 3237 69 55 62.1
Cairns 1753 61 59 59.8
Australian Capital Territory 1009 85 34 59.5
Alpine Shire 1025 36 80 57.9
Perth 3804 80 28 53.6
Melbourne 15878 54 52 53.0
Douglas 1070 38 64 51.1
Sydney 15758 55 19 36.7
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.
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.
What is your home worth as a vacation 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.