Top 10 Australian Airbnb Markets to Invest

Australia's vacation rental market is becoming increasingly popular, with the number of tourists expected to hit 8 million by 2029 making Australia a great market to invest in. 

By the end of 2024, the market is projected to generate $1.5 billion in revenue, with an annual growth rate of 4.17% from 2024 to 2029. This growth however is not uniform with some parts of the country doing much better than others.

In this article, we’ll take a closer look at the top 10 Airbnb markets across Australia, diving into the numbers that make each location a standout for investment.

Summary of the Australian Short-Term Rental Market

Australia's vacation rental market is shaped by its unique geography and varied climate, creating a lively and seasonal demand. From the tropical north to the temperate south, the country's weather patterns influence where and when people travel.

The peak travel season in Australia is during the summer, from December to February. This is when the country comes alive, with vibrant festivals in Melbourne and Sydney, endless sunny days on the Sunshine Coast and the stunning coral blooms of the Great Barrier Reef attracting visitors from all over.

But summer isn’t the only great time to explore Australia. The country’s mild winters draws plenty of travelers, especially to places like the Snowy Mountains and Victorian High Country. These areas become winter playgrounds, perfect for snow sports and cozy mountain getaways.

On top of the seasonal shifts, Australia’s holidays also play a big role in the vacation rental market. Major holidays like Christmas, New Year’s Eve, Australia Day (January 26), Easter and school breaks lead to a surge in bookings, especially in coastal areas and popular tourist destinations. Families and holidaymakers flock to these spots, making the most of their time off for vacations and weekend escapes.

Why Should You Invest in an Airbnb in Australia

The Australian travel industry has bounced back since the pandemic, with domestic and international tourism on the rise. Even with high interest rates in 2024, Aussies are still keen to travel, often using increased savings to fund their adventures. This makes now a great time to consider investing in Airbnb properties in Australia.

Here’s a breakdown of why investing in Australia is a smart move:

1. Demand is growing

Tourism spending in Australia has already surpassed pre-pandemic levels, with both domestic and international travel expected to keep rising. By 2025, international tourism is projected to exceed what it was before COVID-19, making Airbnb properties a hot commodity.

2. Travelers want unique stays

Airbnb caters to a wide range of travelers, whether they’re looking for a cozy room or an entire home and more travelers are opting for alternative accommodations like Airbnbs over traditional hotels. They’re looking for unique, local experiences that let them connect with the culture and environment in a way hotels often can’t offer. 

3. Clear regulations

Australia has a stable legal framework for short-term rentals, giving investors peace of mind. With clear rules in place, it’s easier to navigate the market, stay compliant and manage your property successfully.

4. Plenty of profitable locations

Australia offers a variety of profitable locations for short-term rental investments. Whether in big cities or popular tourist destinations, many areas have seen consistent growth in rental income, making it hard to go wrong with your choice of location.

Top 10 Australian Airbnb Markets to Invest

Australia offers a diverse range of lucrative opportunities for short-term rentals, whether you’re drawn to the energy of its vibrant cities or the tranquility of its stunning coastal escapes. From the bustling central business districts of major cities to serene beachside retreats, there’s something for every type of traveler — and every savvy investor.

We’ve used data from AirDNA to rank the top 10 most profitable Airbnb locations in Australia. These rankings highlight the best places to maximize returns, tapping into the country’s thriving tourism scene and ever-growing demand for unique accommodations.

10. Gold Coast

Nestled along Queensland’s sun-drenched coastline, Gold Coast is a vibrant destination known for its golden beaches, stunning skyline and thrilling attractions. 

Median home value: $801,000

Occupancy: 67%

Average daily rate: $299

RevPAR: $258.10

9. Adelaide

Adelaide charms visitors with its mix of cultural sophistication and relaxed vibe. From the lively Rundle Mall to the peaceful Adelaide Hills, the city offers something for every traveler.

Median home value: $723,000

Occupancy: 62%

Average daily rate: $291

RevPAR: $169.50

8. Hobart

Located in Tasmania, Australia’s southernmost island, Hobart offers a blend of rich history and stunning natural beauty. Whether you’re exploring the historic Salamanca Place or hiking up Mount Wellington, Hobart has plenty to offer adventurers and culture seekers.

Median home value: $662,000

Occupancy: 67%

Average daily rate: $280

RevPAR: $178.80

7. Newcastle

Newcastle is a perfect mix of world-class beaches, a lively arts scene and relaxed coastal vibes. As one of Australia’s oldest cities, it seamlessly blends historic charm with modern conveniences.

Occupancy: 59%

Average daily rate: $319

RevPAR: $182.20

6. Sydney

Sydney, with its iconic skyline, famous landmarks and lively cultural scene, offers a perfect mix of urban excitement and coastal charm. From the Sydney Opera House to Bondi Beach, there’s plenty for travelers to enjoy.

Median home value: $1,069,000

Occupancy: 67%

Average daily rate: $335

RevPAR: $217.70

5. Augusta Margaret River

Augusta Margaret River draws visitors with its rugged coastline, lush vineyards and towering karri forests. Known for world-class wineries, beautiful beaches and outdoor adventures, it’s the perfect spot for those seeking both relaxation and exploration.

Occupancy: 68%

Average daily rate: $359

RevPAR: $228.60

4.  Australian Capital Territory (ACT)

The Australian Capital Territory (ACT), home to Canberra, offers a vibrant arts scene, world-class museums and iconic landmarks, making it a must-visit for travelers looking for enriching experiences.

Occupancy: 62%

Average daily rate: $219

RevPAR: $129.20

3. Whitsunday

Whitsunday, a tropical paradise in the Great Barrier Reef, offers pristine beaches, crystal-clear waters and lush rainforests. Just off Queensland's coast, this stunning archipelago is made of 74 islands and is a top choice for those seeking an idyllic island escape.

Occupancy: 72%

Average Daily Rate: $620

RevPAR: $427.10

2. Brisbane

Brisbane, the capital of Queensland, lies along the scenic Brisbane River and offers a perfect mix of urban sophistication and relaxed charm. Positioned between the Gold Coast and the Sunshine Coast, Brisbane enjoys a subtropical climate, fantastic dining and a vibrant cultural scene, making it a popular destination for travelers from around the world.

Median home value: $801,000

Occupancy:  65%

Average daily rate: $264

RevPAR: $165.50

1. Perth 

Perth, coming in at number one in the top 10 Australian markets to invest in, is the capital and largest city of Western Australia. Set along the picturesque Swan River, Perth, offers a perfect mix of urban sophistication and natural beauty, attracting travelers in search of sun-soaked adventures. 

The city’s appeal extends to Airbnb investors well with a relatively low average home value and the highest occupancy rate in Australia at 77%. This makes Perth an attractive option for those looking to tap into the short-term rental market.

Median home value: $660,000

Occupancy: 77%

Average daily rate: $223

RevPAR: $163.90

Maximizing Your Investment in Australia’s Top Airbnb Markets

Investing in Australia’s Airbnb market presents a wealth of opportunities, from bustling cities to serene coastal retreats. 

With the tourism industry rebounding and a variety of locations offering strong returns, now is an ideal time to explore these top markets. Whether you’re drawn to the laid-back charm of Perth, the cultural richness of Sydney or the tropical allure of Whitsunday, each destination offers unique benefits for investors. 

By carefully selecting the right location, you can tap into Australia’s thriving tourism scene and secure long-term success in the short-term rental market.