Top 40 Australia cities for Airbnb Investment

Discover the most profitable Australia Airbnb markets around where you live.

Comprehensive Exploration of Short-term rental & Real Estate Trends in the Top 40 Australia Cities for Prime Airbnb Investments! Find the best places to own and invest an Airbnb.

Airbnb Statistics Australia

Australia has continued to be a hotspot attracting international travelers with its stunning outdoors and vibrant cities. This has opened up a wide window of opportunities for savvy real estate investors to enter and benefit from Airbnb investing. The landscape of property investment has seen a shift, driven by the exponential growth of the short-term rental market.

But the appeal of success in Airbnb investing in Australia is often by challenges, especially in selecting the best cities to invest in Airbnb. This is where the light of data analytics shines brightly. So, this article will cover Airbnb statistics by city, Airbnb occupancy rate, and cap rate of the best places to own an Airbnb. We will also share free Airbnb statistics in Australia for 2023 as well as real estate analysis.

Methodology For Airbnb Analytics Australia

Guided by data analytics, our team has examined a number of Australian cities – from the sun-kissed beaches of the Gold Coast to the major cultural hub that is Sydney. Utilizing the advanced features of Airbtics’ Dashboard, we have compiled an extensive dataset of short-term rental revenue generated in these Australian cities over the course of the past year.

We then looked for the median property prices in these locations. These allowed us to assess the income potential a market possessed in relation to its property cost, leading to the calculation of the gross rental yield. After evaluating these locations, we have tabulated the top 40 cities for profitable Airbnb investments.

How do I know if Airbnb is profitable in my area?

A number of quantifiable factors can play a role in the profitability of an Airbnb market. By studying them, the result is a data-backed investment strategy that can guide you to the most profitable Airbnb locations. Some may look for the highest Airbnb occupancy rates in Australia. The good news is you can maximize the profitability of your market by getting the right property type and the best property size. These two can vary depending on your short-term rental market.

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How Much You’re Capable of Spending

To gauge the cost of property in a market, its median property value is used to measure its general price range. This is the middle price point of all available property for sale arranged from the lowest to the highest. The median property price represents the point where the top half represents more expensive property and the lower half represents the relatively affordable property.

How Many Short-Rental Listings Are in the Market

The number of active listings reflects the current count of properties enlisted and ready for booking on the Airbnb platform. This also provides information on the overall availability of short-term rentals and the competitive landscape of a particular market.

How Often The Market Is Booked

Occupancy rate is the percentage of time an Airbnb unit is occupied. This is computed by dividing the total nights the property is booked by the overall number the properties are available on Airbnb during a specific timeframe. High demand is reflected by a high occupancy rate, which leads to high revenue.

Occupancy Rate =

# of nights booked
Total nights available

Occupancy Rate =

# of nights booked
Total nights available

How Much You Can Earn in the Market

Potential annual revenue pertains to the anticipated earnings that a property in a market can make in a year, considering its daily rate and occupancy rate. This figure offers an estimate of the property’s income potential before factoring in expenses. 

What is a Good Airbnb Occupancy Rate in Australia?

In 2023, the average occupancy rate for Airbnb Australia stands at 26.4%. This figure may serve as a useful reference point. This may indicate that meeting or surpassing this rate is deemed favorable. However, it is important to note that not all markets can adhere to this standard.

Outlined in the table below are the occupancy rates of prominent Australian tourism centers. This data provides insights into the demand of these cities, considering their average 2023 Airbnb occupancy rates and YoY change from the previous year.

What is a good cap rate in Australia?

The good cap rate is within the range of 5-10%. The higher a property is in this spectrum may suggest a higher return relative to its market price. Whereas, a lower cap rate signifies less earnings relative to your investment.

The capitalization rate measures the length of time the property becomes profitable. It is also a valuable method for evaluating a variety of real estate investment choices. To compute it, you’ll have to divide the property’s net income (income derived from renting after subtracting expenses like taxes and maintenance) by its present market value.

Cap Rate =

Property’s net income
Current market price

Cap Rate =

Property’s net income
Current market price

A cap rate beyond 10% may suggest risks such as an indication of uncertain income potential or an inverse relationship with the current market price.

Best Airbnb-Friendly Cities In Australia

A scoring mechanism is set in place to assess the leniency of Airbnb regulations within prominent cities in Australia. Our evaluation includes zoning regulations (1 point), hosting day limit (1 point), and the scale of municipal taxes stratified as follows: 1 point for rates below 5%, 2 points for 6-10%, and 3 points from 11 and above.

By having this structured scoring framework that considers these factors, potential investors can pinpoint the best local that is more aligned with their investing goals. However, it’s worth mentioning that lenient Airbnb regulations do not necessarily guarantee high profitability in such cities. It is just that Airbnb investors can rely on this to streamline their search in terms of ease of doing short-term rental business. 

What Are the Risks of Investing in Airbnb?

Diversifying your source of income via Airbnb can lend a significant revenue stream. But still, its predictability compared to consistent monthly returns often associated with traditional long-term rentals differs. The intrinsic seasonality attributed to short-term rental trends causes such unpredictability. Periods of peak season alternate with lean months are often felt even in the most sought-after tourist destinations in the world.

The hospitality sector, which includes Airbnb, is positioned as particularly vulnerable during economic downturns. Since travel is often perceived as a luxury, this vulnerability can cause negative effects on average nightly and occupancy rates. These 2 are among the major factors in your earnings.

Short-term rental regulations have become a bitter pill to swallow for Airbnb hosts and investors all over the world. These regulations vary depending on the local government that enforces them. Putting a cap on the maximum number of booking nights as well as imposing a zoning area for short-term rentals can have a significant impact on your Airbnb business. 

If the rules and regulations for Airbnb become stricter in your city, it could lead to fewer chances for you to get bookings. This would then lower the demand for short-term rentals overall. The constantly changing Airbnb regulations in your city add an element of uncertainty to your plans for investing and your long-term goals.

However, even with these things to think about, Airbnb continues to be popular. In fact, such popularity leads to increased competition among hosts. If there are too many hosts in your area offering Airbnb rentals, it might become harder for you to attract guests and maintain a good occupancy rate.

Frequently Asked Questions

How to Find A Good Airbnb Property in Australia?

Start by researching your preferred Airbnb markets. Factor in the local regulations, demand, and property costs. Start your research strong by using Airbnb data to gather key information regarding prominent Australian locales suitable for Airbnb hosting. 

How to find Airbnb Occupancy Rates?

Access this information from Airbtics’s Insights Tab, which also shows you the annual revenue, average nightly rate, and many others. 

Airbnb occupancy rate reflects how frequently a listing is booked based on historical data, seasonal patterns, and month-over-month and year-over-year changes. Airbnb occupancy rates also reflect the demand in your area.

Where To Get Airbnb Statistics of the Top Cities in Australia?

Free Airbnb statistics are available via our sample report. For more comprehensive short-term rental insights which include 5-year real estate instability metrics for 40 markets including population, property prices, income levels, Google travel interest, crime, and unemployment trends 2017 – 2021), you may purchase an Australian STR Report. This is a valuable source of information that can maximize your Airbnb investment portfolio. It will be delivered to you in 3 business days.

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Deeper STR Insights. Broader Investment Opportunities.

Want to go deeper, broader, and faster? Supercharge your Airbnb Investment by accessing the most in-depth Airbnb & real estate insights with our exclusive STR report.

How much can you earn from Airbnb Australia?

Ditch the manual computation and simplify the process with this free Airbnb Profit Calculator. See the future of earnings of your Airbnb in just a few clicks!

Where Is The Best Place To Own An Airbnb?

The best place to own an Airbnb is influenced by a number of components such as location, demand, local regulations, and even your personal preferences. Search for the market that aligns with your investment goal. Finding the best one might take some time, but data analytics can lend you a hand to hasten your property search.

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