The Best Airbnb Markets in Australia

Australia's international tourist numbers are experiencing a strong recovery: according to ABS statistics, every month in 2024 delivered consistent growth compared to 2023. Aside from Australia's reputation for sandy coastlines, beautiful hinterlands, and a lively culture, major contributing factors to this recovery include sporting events and international acts that boost occupancy rates for short-term rental markets in the country, even during off-peak seasons.

With international arrivals to Australia expected to continue trending positively, there is also an increasing interest in short-term rentals — after all, STRs can offer higher returns compared to traditional LTRs, making them an attractive investment option. But choosing where to invest in can prove to be difficult.

To make decision-making simpler, we've compiled the list of the best Airbnb markets in Australia, based on historical performance (average occupancy rate and average daily rate) and recent trends that set up the local short-term rental market for long-term success. Check them out below:

The Best Airbnb Markets in Australia

1. Sydney

Drawing in more than three million international visitors and capturing 27% of the domestic market in 2023, Sydney is definitely one of Australia’s most popular tourist destinations. Sydney is one of the best Airbnb markets in Australia due to visitor numbers being steady throughout the year, largely due to its accessibility and the plethora of things to do in the area.

Airbnb owners of short stays in Sydney can expect occupancy to peak in summer every year, just in time for the holidays. A recent trend that's also causing demand surges are limited-time events such as annual festivals and concerts, especially after the precinct concert cap for Sydney Cricket Ground was finally raised from 4 to 20 per year. Homeowners of short-term rentals in Sydney can generally expect more bookings during this period.

Learn about recent Airbnb trends in Sydney with Hometime's Sydney Short-term Rental Market Report.

2. Melbourne

Despite higher supply, demand for short-term rentals in Melbourne has increased in the last financial year. Australia's second-largest tourist destination behind Sydney, short stays in Melbourne experience steady demand throughout the year.

Homeowners can plan Airbnb pricing around events in the city, when travel demand is at its highest. The Australian Open and the Formula 1 Australian Grand Prix lead to the largest influxes yearly, while concerts like Taylor Swift’s Eras Tour also significantly boost demand for short stays in Melbourne.

Get insights about short-term rentals in Melbourne with our Melbourne Short-Term Rental Market Report.

3. Gold Coast

Famous for its stunning beaches, demand for short stays in Melbourne typically have higher occupancy rates in the second half of the year, trending higher in the lead-up to summer and when the season begins.

However, there is consistent demand for short-term rentals in the Gold Coast throughout the year, even during off-peak season — the Gold Coast's theme parks and hinterland are also popular attractions in the area. Visitors also love the local nightlife and culture. This year-round demand for short stays in the Gold Coast makes it one of the best Airbnb markets in Australia.

Check out Hometime's Gold Coast Short-Term Rental Market Report for more info about the local rental market.

4. Brisbane

While demand for short stays in Brisbane are lower in autumn, occupancy rates are relatively stable throughout the year, largely due to the diverse range of travellers visiting the city. Brisbane attracts students and tourists who wish to explore local attractions, as well as inbound business travellers who stay longer compared to when they visit other cities. Many also come to Brisbane to partake in the local cultural, foodie, and sports scenes.

Though occupancy rates have dipped in FY24 compared to FY23, travel numbers are expected to pick up again in the years leading up to the 2032 Summer Olympic and Paralympic Games — many have been anticipating a tourism and infrastructure boom since the announcement.

Discover more about short stays in Brisbane with Hometime's Brisbane Short-Term Rental Market Report.

5. Sunshine Coast

Tourist numbers to the Sunshine Coast are increasing, up 2.9% in the year to March 2024 compared to 2019 pre-pandemic numbers. Due to its coastal location, occupancy rates and average daily rates peak in the summertime, but there is consistent demand throughout the year due to its subtropical climate and lively culture.

Interstate visitors, who largely fuel the demand for trips to the Sunshine Coast, stay for 5.6 nights on average. International travellers, on the other hand, stay for about 3x as long — 16.2 nights.

Take a look at Hometime's Sunshine Coast Short-Term Rental Market Report for more information about Airbnbs in the Sunshine Coast.

6. Hobart

Tourist numbers in Hobart set a new record in the first three months of 2024: at least 760,000 travellers arrived from Jan-Mar 2024, surpassing Jan-Mar 2023 numbers by by 100,000.

Though occupancy rates for short stays in Hobart are seasonal and peak in summer, average daily rates are relatively stable throughout the year. Tourism in Hobart is expected to become even busier in the coming years — a $130 million project is already underway to upgrade the Hobart Airport runway, which would enable the airport to service wide-body international aircrafts to increase overall capacity and support direct flights to/from Asia. With tourist numbers expected to grow in the upcoming years, Hobart will continue to be one of the best Airbnb markets in Australia.

Read through Hometime's Hobart Short-Term Rental Market Report for more.

7. South West WA

Known for its magnificent beaches, lush farmland, dense forests, and some of the world’s finest wineries, the south-west corner of Western Australia is a much-loved destination. Overnight visitor numbers have been increasing steadily throughout the years, particularly among middle-aged Australians aged 30-64, whose visitation numbers are nearly 16% above pre-COVID levels.

A popular destination during the year-end holidays, occupancy rates and average daily rates for short stays in South West WA begin climbing in October and peak in December-January. Visitors to South West WA tend to stay longer compared to other parts of Australia as they explore multiple areas like Dunsborough and Margaret River — the region is sixth in the list of top 10 regional tourism areas in Australia when ranked by number of visitors and length of stay.

Our South West WA Short Term Rental Market Report has more data about the Airbnb market in the region.

What's the Average Airbnb Occupancy Rate in Australia?

The average Airbnb occupancy rate in Australia typically hovers around the 55-70% range, but it varies based on location and seasonality. Coastal properties, for example, can expect higher occupancy and demand during summer compared to the other months of the year.

One of the best ways to improve Airbnb occupancy rates is by partnering with full-service Airbnb management companies, who optimise the operations of your short-term rental to increase revenue and occupancy of your Airbnb. For example, Hometime's full-service property management solutions in Australia are designed to maximise your earnings and guest satisfaction with these dedicated services:

• Property onboarding:
  We’ll help you set up your short-term rental as quickly as we can so you can start getting bookings ASAP.
• Listing optimisation:
  Our team constantly works on improving your listing through great content showcasing the best of the property with high-quality professional photos, and creating detailed guides for your guests. This includes property styling and photography to make your Airbnb stand out and to maximise its appeal.
  
• Dynamic pricing strategy:
  Hometime’s pricing analysts and market experts will help optimise your revenue while increasing occupancy at the same time.
  
• Airbnb cleaning services:
  We’ll find the best cleaners in your area to look after your home, whether it’s for regular cleans, deep cleans ready for peak season, or even restocking essentials. We use the built-in cleaning fee from the booking, so there’ll be no need to pay for it out of pocket.
  
• Guest communication and management:
  We go the extra mile to ensure your guests enjoy every part of their stay, from making the booking, checking in, checking out, and everything in between. This includes taking care of maintenance issues quickly, providing alternatives for late-night arrivals, and even meeting them in person when needed!
  
• Property maintenance:
  Hometime’s local Airbnb experts will sort out all your maintenance needs to make both you and your guests happy. We’ll also do our best to get you the best rates for services in the area due to our close relationships with local businesses.