In recent years, Australia has seen more and more travellers opt for the comfort and convenience of vacation rentals over traditional hotel stays, translating to a significant increase in the number of people investing in short-term rental properties.
Naturally, this shift has led to a growing demand for properties in popular tourist destinations and scenic areas, with investors looking for the best return on their investment.
This article compiles a list of Australia’s best short-term rental markets to help you find the right investment property. Our specialists have analysed data such as seasonal demand, occupancy rates, and rental prices to bring you the top locations for investment in the short-term rental market.
Whether you’re a seasoned investor or just starting out, these markets offer a unique opportunity to tap into the lucrative world of vacation rental properties.
Sydney
Demand: High
Occupancy Rate: 60%
Average Rental Price: $200 per night
The most populous city in Australia, Sydney boasts a booming economy and is home to many of the country’s largest corporations. This makes it an ideal location for short-term rental investors looking to capitalise on the corporate relocations and business trips often occurring here.
With its vibrant nightlife and bustling business district, Sydney is one of the most popular destinations for tourists and business travellers alike.
To maximise your returns as a property investor, consider investing in areas such as The Rocks or Darling Harbour, which are popular with tourists due to their proximity to iconic landmarks such as the Sydney Opera House and Harbour Bridge.
Melbourne
Demand: High
Occupancy Rate: 65%
Average Rental Prices: $150 per night
Melbourne is famous for its thriving arts scene, cafe culture, and top sporting events like the Australian Open tennis tournament and the Formula 1 Grand Prix.
Tourists visit Melbourne year-round for its cultural heritage and popular attractions like Federation Square, Eureka Skydeck 88 observation tower, and Queen Victoria Market.
It also has a strong economy and a wide range of job opportunities, making it a great choice if you want to make the most of tourism and longer-term rentals.
Brisbane
Demand: Steady
Occupancy Rate: 55%
Average Rental Price: $120 per night
As Australia’s third largest city by population after Sydney and Melbourne, Brisbane has become increasingly attractive for vacation rental property owners looking for profitable investment opportunities.
Brisbane has seen rapid growth in recent years due to its favourable climate and its close proximity to several major coastal cities, including Gold Coast and Sunshine Coast. Its thriving, vibrant culture makes it an attractive destination for tourists looking for accommodation near popular spots like South Bank Parklands or Fortitude Valley Night Markets.
If you’re seeking higher returns, you should consider investing in areas like New Farm or West End, which have seen substantial increases in average property prices over the past few years.
Perth
Demand: Steady
Occupancy Rate: 50%
Average Rental Price: $100 per night
Western Australia’s capital city has everything from beautiful beaches and stunning landscapes to world-class restaurants and vibrant nightlife. It also has some of the country’s highest occupancy rates for short-term rentals, with an average of over 80 per cent throughout the year.
The fact that Perth is home to major attractions such as Kings Park, Rottnest Island and Swan Valley makes it an ideal spot for real estate investors looking for consistent investment returns.
Adelaide
Demand: Moderate
Occupancy Rate: 45%
Average Rental Price: $90 per night
Located on the south coast of Australia, Adelaide has been one of the fastest-growing capital cities over recent years due to its strong economic growth and low cost of living compared with other major cities across the country.
The city is home to some stunning coastal towns offering visitors access to white sandy beaches and excellent dining options at local wineries and breweries.
Adelaide has also become increasingly popular amongst tourists due to its unique cultural offerings, such as numerous galleries and museums which attract visitors from all around the globe.
Gold Coast
Demand: High
Occupancy Rate: 60%
Average Rental Price: $150 per night
The Gold Coast is one of Australia’s most iconic destinations – offering stunning beaches, world-class theme parks, lush rainforest hinterlands, and plenty more attractions that all contribute to its popularity with tourists from around the world.
It’s no wonder then that there is high demand for short-term accommodation options here, especially during peak seasons like summer holidays or school vacations when people come from all over the country looking for somewhere special to stay while they explore everything this beautiful part of Australia has to offer.
Byron Bay
Demand: High
Occupancy Rate: 65%
Average Rental Price: $200 per night
Byron Bay is one of Australia’s most popular tourist destinations, and it’s no surprise that it’s also one of the best vacation rental property markets. The area has long been a favourite holiday destination for Australians and international visitors, thanks to its beautiful beaches, lush rainforest, and laid back atmosphere.
The town is home to some great restaurants and bars, as well as several attractions like Cape Byron Lighthouse and Arakwal National Park. With such abundant nearby activities, Byron Bay has emerged as one of the most sought-after spots for holiday rentals.
Cairns
Demand: Moderate
Occupancy Rate: 50%
Average Rental Price: $120 per night
Located on Australia’s tropical coast, Cairns offers access to some of the country’s most beautiful beaches and outdoor activities like snorkelling and diving.
The city also boasts a vibrant nightlife scene that attracts thousands of tourists each year. With its high occupancy rates and ample tourism opportunities, Cairns could be the place to start your short-term rental business.
Surfers Paradise
Demand: High
Occupancy Rate: 60%
Average Rental Price: $180 per night
Surfers Paradise is one of Australia’s most iconic beach towns and a popular tourist destination. It’s also becoming an attractive area for new and experienced investors due to its strong rental yields and high demand from holidaymakers looking for apartments or houses on the beachfront.
Surfers Paradise can be an excellent spot for real estate investors looking to buy into a lucrative short-term rental market with plenty of attractions such as theme parks, shopping centres, and entertainment venues.
Noosa Heads
Demand: High
Occupancy Rate: 65%
Average Rental Price: $170 per night
Noosa Heads is undoubtedly one of the most stunning places on Australia’s east coast, with picture-perfect views to captivate outdoor enthusiasts of all kinds.
With pristine white sandy beaches perfect for swimming or relaxing walks along Noosa National Park trails, this town attracts holidaymakers each year who come here seeking tranquillity amidst nature at its finest.
The beautiful surroundings come with an increased demand for quality accommodation options, making Noosa Heads an ideal location for investing in short-term rentals.
What Are The Best Short-Term Rental Markets For You?
Investing in short-term rental properties can be a smart move when done correctly, as it allows you to take advantage of seasonal peaks in tourism activity during certain months or times of the year while still having control over your property investment!
The markets we have mentioned above are some of the best in Australia for investing in rental accommodation opportunities, so if you’re looking into getting started with investing, these cities should definitely be top considerations.
If you need further help finding an investment offering above-average rental income or have any questions regarding any of the markets listed in this article, feel free to contact our property management experts here at GrowHost. Our experienced team will provide advice and guidance, so you can pick a property that meets your needs and offers maximum cash return.
