10 goldmine destinations for Airbnb investors
From the city to the coast, Australia is a treasure trove for short-term rental owners who know where to look.
New research from Canadian data provider AirDNA has revealed the 10 best Australian locations for short-term rental investors looking to balance high rental returns with long-term growth.
The ranking considered four different factors: rental demand, year-on-year revenue growth, seasonality, and strictness of government regulations.
Seiko Ma, managing director of short-term property management company Alice’s Home, noted that increasing regulations in hotspot markets, like Victoria and Byron Bay, have made it less profitable for owners to run an Airbnb.
“Recently, it has been challenging for the short-term rental market in southern states. Some scrutiny and even efforts to limit the market have certainly placed a dampener on growth down south,” said Ma.
In contrast, the locations that fared best in the report are those with less stringent local regulations, with Perth and Brisbane coming out on top.
In areas with low regulations, Ma stated that the tourism economy has received a boost from short-term rental properties.
“We have seen the positive effect short-term rental and Airbnb has had on the tourism economy by providing accommodation options to leisure and business travellers,” the managing director observed.
“Also, the local labour market has benefitted by the industry, for example with cleaners who have the opportunity to work closer to home.”
Here are the top 10 Australian Airbnb markets, according to AirDNA’s latest report:
1. Perth
- Occupancy (available nights occupied per year): 77 per cent
- Average daily rate: $223
2. Brisbane
- Occupancy: 65 per cent
- Average daily rate: $264
3. Whitsundays
- Occupancy: 72 per cent
- Average daily rate: $620
4. Canberra
- Occupancy: 62 per cent
- Average daily rate: $219
5. Margaret River
- Occupancy: 68 per cent
- Average daily rate: $359
6. Sydney
- Occupancy: 67 per cent
- Average daily rate: $335
7. Newcastle
- Occupancy: 59 per cent
- Average daily rate: $319
8. Hobart
- Occupancy: 67 per cent
- Average daily rate: $280
9. Adelaide
- Occupancy: 62 per cent
- Average daily rate: $291
10. Gold Coast
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