Australia is known for its beaches and national parks. However, popular locations such as Bondi and the Blue Mountains already have a lot of competition in terms of active Airbnb hosts. Additionally, if you’re looking to buy an investment property in Australia, some of these well-known suburbs might not be the best idea in terms of potential growth long term.
In a recent report on the Australian property market, active home sellers have documented whether or not they believe real estate in their area will continue to grow within the next six months. This data, along with data from AirDNA, has been used to determine which five destinations are currently trending for Airbnb in Australia.
1. Wagga Wagga
Wagga Wagga is a regional center located in New South Wales, around halfway in-between the two popular capital cities of Sydney and Melbourne. Though New South Wales as a whole has dropping market expectations, home sellers in regional areas are more optimistic than those in metro areas.
Currently, there are just over 200 active Airbnb rentals in Wagga Wagga – with an impressive occupancy rate of 76%. The average monthly revenue for Airbnb hosts is approximately $2,812 a month. Wagga Wagga has had a whopping 289% increase in bookings year-on-year.
Adelaide is the capital city of South Australia. Compared to other capital cities in Australia, Adelaide has quite optimistic market expectations. Home sellers in Adelaide are expecting property prices to continue increasing within the next six months. Adelaide and Brisbane are currently the two top performing capital cities according to vendors.
There are almost 4,000 active rentals in Adelaide. Though this means that there is a lot of competition, the capital city also has a relatively high occupancy rate of 66%. You can also expect to be making around $2,827 in monthly revenue from a successful Airbnb in Adelaide.
Bridport is a relatively small town on the coast of Tasmania. According to Propertyvalue, the suburb has had a high 9.38% median price change over the last year, despite the national average being 4.3%. Along with other factors, Bridport offers a sound investment opportunity for those looking to buy.
In Bridport, there isn’t too much competition. Data shows there are only 68 active rentals. The occupancy rate, around 67%, is comparable to capital cities and other thriving areas of Australia. There has been a 173% increase in bookings year-on-year in Bridport. Hence, you can expect the area to continue gaining popularity with Airbnb users.
Toowoomba is located in southern Queensland and offers a range of different attractions. Queensland’s market expectations are remaining steady despite the decline in New South Wales and Victoria. Home sellers in Queensland remain hopeful, expecting property prices to continue rising within the next six months.
Toowoomba has had an enormous 229% increase in bookings year-on-year, highlighting its popularity with Airbnb guests. Currently, there are just over 300 active rentals in the area with a 63% occupancy rate. Owners have the potential to be making around $2,395 a month based on the average daily rate and potential occupancy.
5. Tamborine Mountain
Tamborine Mountain is not too far from Toowoomba, located in south-eastern Queensland. Hence, the same strong market expectations seen in Toowoomba can also be seen in Tamborine Mountain. There has also been a 6.92% increase in the median house price in the last year.
There are currently around 150 active Airbnb rentals in Tamborine Mountain. Though the occupancy rate at around 50% is slightly lower than other trending destinations, there isn’t too much competition to date. Plus, the suburb has had a 205% increase in bookings in the past year, meaning Tamborine Mountain is gaining popularity with Airbnb guests.
Areas with less competition like Bridport and Tamborine Mountain are great options if you’re willing to put in the effort to make your vacation rental stand out on Airbnb. Remember that your listing, including your photos and description, are the first things potential guests will see. It’s important to make sure your listing is competitive.
Capital cities such as Adelaide are always a great option. However, with thousands of other active rentals, you’ll have to find multiple ways to make sure your space gets booked over others. This could include other marketing strategies such as building a professional website and offering special prices for those who book direct. Places like Sydney and Melbourne are popular with tourists, however, might not make the best investments with the market cooling right now.
With Airbnb being a great source of income and Australia being a flourishing tourist destination, it makes sense to combine the two. You have the potential of making thousands of Australian dollars in monthly revenue if you’re running a successful Airbnb. Always make sure to do thorough research into any areas you’re considering investing in!
About the Author
James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.