Top 10 Australian Airbnb Markets to Invest

Australia is filled to the brim with eccentric experiences and breathtaking landscapes. Home to more than 10,000 beaches and 500 national parks there’s all kinds of fun for nature lovers and explorers in Australia. To top it off, the country is home to plenty of thriving urban environments for anyone who prefers some urban exploration. Some of Australia’s best cities aren’t just good, they’re world-class, such as Melbourne, which is constantly voted one of the world’s “Most Livable” cities.

For so many reasons, backpackers and travel enthusiasts find themselves adding Australia to their bucket lists and the number of international visitors alone shows an exponential curve. If this trend continues the number of international visitors to the country may exceed 15 million within the next 5 years. According to sources, in 2019 alone, tourism contributed a whopping 60.8 billion to the economy meaning that the tourism GDP grew at a faster rate than the national economy.

With tourism being such a thriving industry in Australia contributing to 3.1% of the national GDP it looks like an ideal market to invest in your next Airbnb. In this article, we look at why Australia is a great market to invest in, and the best Airbnb markets to invest in within Australia.

Why Should You Consider Australia For Your Airbnb Investment Property?

1. There is a high demand for short-term rentals from locals, as domestic travel accounts for 74% of the tourism earnings and international travelers make up 26% of the tourism earnings.
2. It shouldn’t be difficult to acquire funds to set up your vacation rental with banks offering loans at an all-time low- interest rate.
3. According to AIRDNA, the destination markets of Australia have been seeing a rental and revenue growth year-on-year for the past decade.

The Top 10 Australian Airbnb Markets To Invest In By Demand Growth

1. Warrumbungle Shire:

Located in the central-western region of New South Wales, Warrumbungle Shire is home to the Warrumbungles mountain range and Warrumbungles national park which attracts a lot of locals and tourists.

• Average Daily Rate: $162
• Occupancy Rate: 68%
• Median Monthly Revenue: $2,627

2. Broken Hill:

Known as the Silver City, Broken Hill is situated on one of the world’s richest deposits of silver, lead, and zinc ores and is located in New South Wales. It offers a breathtaking range of diverse landscapes to discover and explore, from lush wetlands and lakes to spectacular flat-topped mesas and shimmering gibber desert plains.

• Average Daily Rate: $155
• Occupancy Rate: 74%
• Median Monthly Revenue: $2,090

3. Upper Hunter

A few hours north of Sydney, the Upper Hunter is a gateway to a world-famous wine country, stunning natural attractions, and some of the world’s leading horse-breeding areas. It is famous for wineries, champion mares, and World Heritage wilderness.

• Average Daily Rate: $200
• Occupancy Rate: 57%
• Median Monthly Revenue: $2,800

4. Mid-western Regional

The Mid-Western Region is located approximately 3 hours North of Sydney. The region is well placed and has a rich cultural life, a dynamic and friendly community, and a strong economic base. The Region also offers a unique span of local wine, food, cultural and sporting events.

• Average Daily Rate: $302
• Occupancy Rate: 68%
• Median Monthly Revenue: $4,970

5. Dungog

Dungog is a charming Australian rural service town. It is located in a valley surrounded by rolling hills and edged by the Williams River. It is a base for an exploration of the fine countryside to the north, which includes Chichester Dam, state forests, and Barrington Tops National Park, all of which are ideal places for bushwalking, scenic drives, swimming, horse riding, cycling, camping, mountain bike riding, and canoeing.

• Average Daily Rate: $295
• Occupancy Rate: 67%
• Median Monthly Revenue: $4,620

6. Esperance

A picturesque town nestled on the south coast of Western Australia, Esperance is popular for its beautiful beaches and pristine coastal landscapes.

• Average Daily Rate: $206
• Occupancy Rate: 79%
• Median Monthly Revenue: $3,480

7. Great Lakes

NSW’s largest coastal lake system, the Great Lakes on the Barrington Coast encompasses three beautiful lakes – Myall, Smith, and Wallis – and is a haven for boating, fishing, and houseboat holidays. Flanked by kilometers of pristine white beaches on the ocean-side, and by rainforest to the west, this natural paradise is the perfect choice for weekend getaways or longer.

• Average Daily Rate: $211
• Occupancy Rate: 60%
• Median Monthly Revenue: $2,574

8. Byron

A mecca of sand, sun, and serenity, this beach town is a coastal paradise. Byron Bay is widely known for its alternative culture, easygoing surfers, off-the-grid hippies, it is also popular for award-winning restaurants, luxurious beach houses, and craft breweries.

• Average Daily Rate: $385
• Occupancy Rate: 69%
• Median Monthly Revenue: $4,772

9. Blue mountains:

The Blue Mountains, about a two-hour drive from Sydney, is best known for its soaring sandstone ridges blanketed in native bushland. It seems to attract hikers and nature lovers from all over the world just to see its magnificent sunsets.

• Average Daily Rate: $260
• Occupancy Rate: 61%
• Median Monthly Revenue: $3,555

10. Busselton

Voted Western Australia's Top Tourism Town twice, and just a short hop from the Margaret River wine region, Busselton gives travelers plenty of reasons to take the 2-hour-and-40-minute drive or 50-minute flight south from Perth.

• Average Daily Rate: $343
• Occupancy Rate: 61%
• Median Monthly Revenue: $4,666

In Conclusion:

As you can see, with Airbnb being a great source of income and Australia being a flourishing tourist destination, it makes sense to combine the two. If you get your mix of amenities, location and service right you have the potential of making thousands of dollars in monthly revenue. Always make sure you do thorough research into any areas you’re considering investing in! Are you looking to grow your portfolio? Request a free demo to find out how Hostaway helps property managers around the world.