Where to Start Airbnb Investment in Australia: Best Cities for Property Investment 2023

Last updated on September 4th, 2023

Discover the top 20 Airbnb markets in Australia for property investment, occupancy rates, annual revenue, and more!

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Discover the top 20 Airbnb markets in Australia for property investment, occupancy rates, annual revenue, and more!

September 4, 2023

Key Takeaways

The housing crisis in Australia has recently fallen to the lowest vacancy rate on record. Properties in the rental market are mostly occupied by short-term rental platforms like Airbnb.
Numerous upcoming events in Australia attract more Airbnb guests which generates a revenue of thousands of dollars. Discover the most recommended areas for property investment this 2023 in major cities such as Canberra, Newcastle, Perth, and Melbourne.
Learn about the major events in Australia and which areas make it ideal for Airbnb investment based on accurate Airbnb data.

Introduction

The Airbnb business in Australia is currently in an upward trend and there’s no denying it. Several hosts have joined the community to cope with inflation, and even received Airbnb host awards for hosting excellently!

However, the rental crisis in Australia is said to be related to the rising of short-term rental properties. This has allegedly made it difficult for families to find residential homes.

But from a property investor’s perspective, it’s one of the best times to generate more income by catering to both long-term and short-term rentals. So it leads us to the question – which city is the best for property investment in Australia?

Continue reading as we feature the best Airbnb cities in Australia such as Perth, Canberra, Newcastle, Brisbane, Darwin, and Melbourne for property investment. Bonus: We highlighted the upcoming major events and identified if it’s ideal for property investors.

Is Owning an Airbnb profitable in Australia?

Yes, owning an Airbnb is certainly profitable in Australia! But how much can an Airbnb host make in Australia? According to Airbtics’ data, an Airbnb host in the country can expect a 53% occupancy rate and earn an average monthly revenue of A$5,240.

This varies on many factors such as location, property type, and amenities among others. Rental arbitrage is also an excellent option for those who don’t have the resources to buy an Airbnb property right away.

How do you determine your potential profitability? It’s highly recommended to use an Airbnb profit calculator to accurately identify this. Aside from that, you will also discover emerging markets and learn about the top 10 most profitable Airbnb cities in Australia.

What are the Upcoming Events in Australia?

Australia is not only known for its economic stability but also for its major international events. These events explain why there are fully booked Airbnbs, and of course, the increasing annual revenue for hosts.

Check out some of the upcoming events that property investors and Airbnb hosts should take note of:

1. Canberra City Illuminations Balloon Festival

Canberra celebrates this balloon spectacular festival annually to kick off the Enlighten Festival. The event starts on the 11th of March until the 19th when most tourists and locals alike enjoy the floating balloons. Property investment in Canberra is ideal as one can expect to cater to more tourists for the entire duration of this festival.

According to Airbtics’ data, an average host nearby Patrick White Lawns can expect an annual revenue of A$65,149 for a 1-bedroom apartment/condo alone.

It was also discovered that the highest revenue within the area last 2022 was in April. A market’s seasonality is important to expect revenue shifts in the Airbnb business. Low seasonality such as 38% does not also mean that investing in that area is not profitable because it still gets year-round bookings.

2. Melbourne International Comedy Festival

Nothing beats entertainment comedy, especially when they feature both local and international performances. Known as the second-largest international comedy festival, this event is sure to generate profit for Airbnb hosts!

The comedy festival will start from March 20th until April 23rd, 2023. We’ve taken a close look at the Airbnb data near Swanston Street where The Melbourne International Comedy Festival will take place.

Airbtics confirm that an average host nearby Swanston Street can expect an annual revenue of A$60,915 for a 1-bedroom apartment/condo alone. Its seasonality is at 28%, where an Airbnb host can expect the highest revenue in the month of April.

3. Victoria Australian Grand Prix

One of the most exciting world-class sporting events, The Formula 1 Australian Grand Prix is celebrated from March 30th until April 2nd. Aside from the race itself, various tourists around the globe are also keen to visit here due to the Albert Park.

An Airbnb host nearby the event place, Australian Grand Prix, can expect to earn a nightly rate of A$197 for a 2-bedroom apartment/condo. Airbtics’ data also shows a high Airbnb occupancy rate of 83%, with the highest revenue earned during December.

4. World Surf League

Property investors who are looking to invest in this area can enjoy the stunning views of Bells Beach and major competitors such as Rip Curl Pro Bells Beach.

Known as the longest-running event on the World Surf League’s championship, this event in Bells Beach is expected to attract both tourists and locals annually. It will be celebrated from April 4th-14th, 2023.

According to Airbtics’ data, an average host nearby Bells Beach Road can expect a daily revenue of A$273 for a 2-bedroom apartment/condo alone. The highest revenue can also be expected during the month of April.

5. Parrtijima Light Festival

Looking for a festival that has a jam-packed program? Parrtijima Light Festival is not only about light installations, but also features various films, artworks, and interactive workshops among others.

This annual celebration will be held in Alice Springs from April 7th – 16th, 2023. While there’s no denying about the tourist’s arrival for this event, property investors may still have doubts. What is it like to invest in Alice Springs without such events?

Airbtics confirms that Airbnb’s investment in this area is indeed profitable. However, the seasonality rate is high (82%) – which means that year-round bookings are less likely to happen in the area. In comparison to other festivals featured above, Alice Springs may not be an ideal Airbnb property investment.

Where to Buy Investment Properties in Australia?

There are several Airbnb host expenses to consider, but the most crucial parts are to analyze the Airbnb data in Australia as well as decide the property’s location. While there are plenty of available properties in Australia, not all of them can guarantee a good return.

So it leads you to the final question, where can you invest in an Airbnb property in Australia? Discover the best places for Airbnb investment in Australia:

Where to Buy Investment Properties in Australia?

There are several Airbnb host expenses to consider, but the most crucial part is deciding the property’s location. While there are plenty of available properties in Australia, not all of them can guarantee a good return.

So it leads you to the final question, where can you invest in an Airbnb property in Australia? Discover the best places for Airbnb investment in Australia:

1. Brisbane, Queensland

Airbnb occupancy rate: 97%
Average daily rate: A$181
Airbnb annual revenue: A$69,965
Best property size: 1 bedroom
Existing Airbnb listings: 271 listings

2. Perth, Western Australia

Airbnb occupancy rate: 93%
Average daily rate: A$138
Airbnb annual revenue: A$50,771
Best property size: 1 bedroom
Existing Airbnb listings: 2,793 listings

3. Newcastle, New South Wales

Airbnb occupancy rate: 62%
Average daily rate: A$257
Airbnb annual revenue: A$54,312
Best property size: 1 bedroom
Existing Airbnb listings: 732 listings

4. Darwin, Northern Territory

Airbnb occupancy rate: 69%
Average daily rate: A$229
Airbnb annual revenue: A$69,093
Best property size: 2 bedrooms
Existing Airbnb listings: 578 listings

5. Melbourne, Victoria

Airbnb occupancy rate: 80%
Average daily rate: A$162
Airbnb annual revenue: A$48,394
Best property size: 1 bedroom
Existing Airbnb listings: 3,196 listings

Summary

Airbnb investment in Australia offers promising revenue for Airbnb hosts. The other good news is that property investors can start buying their first investment property in Australia with confidence using an Airbnb profit calculator.

Several annual events occurring across the country not only attract more tourists but provide financial stability to hosts.

Now that you have a clear overview of the best city to invest in property, take the next step by comparing Airbnb data in other cities. If you’re looking to invest in a property in Australia, using an Airbnb analytics tool will help you make data-based decisions. This is one of the best property investment strategies!

Wondering where to invest in Australia with the highest rental yield? With one click, you can easily discover this. Don’t make the wrong investment decisions based on guesses, try Airbtics now and stand out among your competitors!

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Where to Start Airbnb Investment in Australia: Best Cities for Property Investment 2023

Where to Start Airbnb Investment in Australia: Best Cities for Property Investment 2023