Sydney Short-Term Rental Market Report

Sydney is without a doubt one of Australia’s most popular tourist destinations — according to Destination NSW, Sydney led all Australian capital cities for tourism in 2023, drawing in more than three million international visitors and capturing 27% of the domestic market. Whether its to experience the local culture and sightsee, or to take part in seasonal events and attend concerts, Sydney's visitor numbers have only continued to grow throughout the years, making it a strong investment market for accommodations like short-term rentals.

Curious about the key market trends that shaped the performance of short-term rentals in Sydney? Read on below:

Key highlights

• Steady visitor numbers in Sydney throughout the year, with numbers trending higher during summer
• In line with visitor trends, average daily rates (ADRs) also fluctuate seasonally, peaking from December - January
• Certain seasonal events and concerts in Sydney, such as Taylor Swift's highly-anticipated tour, caused spikes in occupancy and nightly rates even in off-peak seasons
• Hometime-managed short-term rentals in Sydney have higher occupancy rates compared to the local market

Sydney Short-Term Rental Market Report

1. Short-term rentals in Sydney are in demand year-round

Travel to Sydney and occupancy rates for short-term rentals trend higher during the warmer months, especially in summer, when numbers peak around Christmas and New Year. And though travel numbers in Sydney slow down a little at the end of autumn and going into winter, business travel and visitors during the off-peak season still maintain a good level of demand year-round.

2. Sydney events are driving growth in the local short-term rental market

Another big tourist draw for Sydney is that it is host to some of the country's biggest annual events, such as Mardi Gras and Vivid Sydney, which are expected to draw in huge crowds every year. It's also a favoured tour stop by many musical artists, both local and international, 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 experience a surge in demand whenever these events took place, even during the off-peak season, which also increase nightly rates. For example, in February 2024, Taylor Swift's tour led to a spike in occupancy rates and a 20% increase in Hometime ADRs compared with the previous year.

3. Average daily rates for Sydney short-term rentals fluctuate seasonally

In line with occupancy rates, average daily rates (ADRs) for short-term rentals in Sydney are also higher in summer, where rates nearly double compared to colder seasons. Prices are at their highest around Christmas and New Year, with ADRs peaking during New Year's Eve. Properties located in and around Sydney CBD, as well as those in areas with good public transport connections, experience more significant gains during these peak periods.

Why Hometime works for Airbnb management in Sydney

1. Hometime homes in Sydney have above-market occupancy rates

Hometime homes consistently outperform the regular short-term rental market in Sydney, despite continually increasing supply and competition. The occupancy rates of Hometime properties have remained steady and the overall market occupancy has even increased in the last financial year. We achieve this through our in-house listing optimisation, with our local Airbnb experts and data analytics teams making sure your home is as bookable as possible, increasing your occupancy rates and average daily rates (ADRs) even during the off-peak season.

2. Data-driven insights to determine nightly rates and boost property value

With Hometime’s Airbnb management, you won’t need to worry about doing market research to determine pricing — we’ll do that for you! Our algorithms will fine-tune nightly rates based on current market fluctuations to make sure that we maximise returns while maintaining high occupancy rates, helping you earn more:

Hometime’s data can also provide various insights to increase your property’s value, such as:

• Which areas in Sydney are most popular during which times of the year
• Which amenities the most popular Airbnbs in Sydney feature
• What you can add to your short-term rental to increase its booking appeal, leading to an increase in occupancy rates and nightly rates.

3. Top-quality guest communication to help you get great reviews

Hometime is a trusted Airbnb management company in Australia that delivers quality results to both short-term rental owners and Airbnb guests. See how people feel about our Airbnb property management and guest management services in Sydney.

1 million+

nights booked across Australia

4.7/5

average guest rating on Airbnb

3,500+

properties managed since 2016

Hometime uses its very own property management software that can do it all — from managing bookings, guest management, and even coordinating Airbnb cleaning services. We also offer a dedicated booking platform for guests to increase your visibility, drive more bookings, and drive rental returns further.

4. Dedicated local Airbnb managers in Sydney 

We’ll connect you with experienced local co-hosts with years of experience in Sydney’s short-term rental market and have welcomed many guests to your area. They will be your first point of contact and will manage everything related to your home, from managing bookings, communicating and vetting guests, and assisting them with any concerns.

What does Hometime’s Airbnb management in Sydney include?

Our full-service property management solutions in Sydney 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 Sydney 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.

Ready to see what Hometime’s Airbnb management in Sydney can do for you? Leave us your details and we’ll be in touch about your short-term rental in Sydney.