Investing in Airbnb can be a profitable opportunity for those who understand how to approach the market. But the hard thing is, that the market is always shifting. So how do you know where you focus your sights and invest in Airbnb for 2024?
Location plays an essential role in the success of Airbnb rentals and can make or break your investment portfolio. From considering local demand and competition to researching occupancy rates, you should always aim to understand the nuances of each potential area before investing in Airbnb properties.
Analyse the local housing market and consider factors like median rent prices, vacancy rates, and local regulations, too.
Spending enough time researching potential locations for your Airbnb investment property will ensure that you establish a profitable business that offers a rewarding return now and for years to come.
After analysing data from AirDNA, we have compiled a list of Australia’s five best places to invest in Airbnb for 2024.
1. Airbnb Investment in Busselton, Western Australia
Situated on the edge of beautiful Geographe Bay in Western Australia, Busselton offers stunning coastline views with abundant activities, making it the perfect holiday destination.
With over 1,644 active short-term rentals, according to AirDNA, investors have the potential for a high occupancy rate throughout the year, averaging 68%. Still, it can even increase up to 88% during peak seasons.
In terms of financial return, property investors can expect an average daily rate of $268 and monthly revenue of $4.1k, although these can rise to $320 and $5.7k, respectively, in peak season periods.
With so much demand for accommodation in Busselton, those who invest can potentially make healthy returns, both from the consistent rental income and increased Airbnb rental property value due to its stunning location.
2. Airbnb Investment in Byron Bay, New South Wales
Byron Bay is an excellent Airbnb investment location. Located 140 km south of Brisbane, this coastal town boasts stunning beaches, award-winning restaurants and beach houses that are perfect for weekend getaways or longer vacations.
It is also home to some of the best surfing in the country, making it an excellent spot for surfers to hang out and enjoy the waves. In addition, there are many breweries and pubs in the area, providing visitors with plenty of nightlife options.
Airbnb investment property owners in Byron Bay can expect high returns on their investment due to its high occupancy rate and daily rate. The current average occupancy rate is 65%, but it can jump up to 83% during peak seasons, such as September onwards.
Average daily rates of $340 can reach up to $418 during December, with average monthly revenue estimated at $3.9k, but jumping to $5.5k in October each year.
However, there are currently over 2,213 active rental listings, so you’ll have to work hard to ensure your Airbnb business stands out among conventional rental properties.
3. Boost Rental Income in Esperance, Western Australia
Esperance, located on the south coast of Western Australia, is an ideal destination for investing in an Airbnb. Its stunning white sands, sunny location, crystal clear turquoise waters, and wild landscapes make it one of Australia’s most beautiful places.
With only 127 active rentals in Esperance, there is far less competition than in other coastal towns. This advantage benefits Airbnb hosts and those looking to invest in conventional investment rental property, as it means you don’t have to work as hard to stand out in the market.
Although the average daily rate is lower than many other destinations in the area at around $173 per night, occupancy rates are higher than many competitors at 83%.
This ensures that you can still generate a healthy income from your short-term rental properties, with average monthly revenue of over $3k (up to $4.5k during peak holiday periods).
So, due to its low competition levels, occupancy rates remain consistent throughout the year – making Esperance one of the best locations for real estate investors looking for reliable returns from their Airbnb investments.
4. Dungog Airbnb Property, New South Wales
Dungog, NSW, is quickly becoming one of the best places to buy Airbnb property in Australia, making it a top choice for those looking to invest in vacation rental properties and become hosts.
With its stunning landscape, rural service town charm, and low competition amongst other short-term rental business owners, Dungog stands out as an ideal spot for those looking to profit from their Airbnb venture.
Not only is there potential to generate significant income from your rental property, but plenty of natural beauty and activities are available to enjoy in the area — making it an excellent base for guests stopping by for a visit. There are numerous scenic hikes, drives, and swimming spots in nearby Chichester Dam and Barrington Tops National Park, as well as horse riding tracks, cycling paths, camping sites, and canoeing routes — all within a short distance and offering something for everyone.
The area boasts 140 active rentals with an average daily rate of $245, meaning that rentals can generate an average monthly revenue of $3.6k – peaking at $4.6k during the holiday season.
5. Douglas, Queensland
Douglas, Queensland, is quickly becoming one of the top places to invest in an Airbnb and become a host due to its steady occupancy rates, high daily rental rate, and attractive monthly revenue streams.
With 972 active rentals available, Douglas offers some of the highest rental numbers compared to other local towns. It consistently achieves an average Airbnb occupancy rate of 74%, peaking during August when it reaches 100%, indicating that there is always a demand for rental properties here.
The average daily rate is $255, which peaks in April at $276, making it a lucrative opportunity for potential investors. Furthermore, this rate stays relatively consistent throughout the year, allowing for a reliable source of income. Finally, Douglas always brings in impressive monthly revenues, with an average of $3.5k per month and reaching as high as $5.4k per month during peak periods.
So, when looking for a place to invest in a profitable Airbnb investment property with steady returns, Douglas should be considered one of the top options. It provides great returns on investment with less competition than other locations such as Byron Bay or Busselton.
Best Places to Buy Airbnb Property Australia – Takeaways
Location significantly influences the rental market, as it dictates key guest criteria such as accessibility and amenities. For Airbnb hosts, it is essential to have an attractive location that will draw guests and ensure an ongoing flow of bookings.
But you should remember that it’s not the only metric that will determine the future success of your listing. Running a successful Airbnb business requires a lot of work, similar to managing a conventional rental property, and that’s why many hosts choose to ask help from a property management company to help them navigate the market.
A property manager can be invaluable in succeeding in the Airbnb rental market. A professional property manager can help you maximise your rental income by pricing your rental correctly and providing a rental experience that meets and exceeds your short-term and long-term tenants’ expectations.
They have the skills and expertise to ensure that your listing stands out from the competition, which is important for property owners in today’s competitive Airbnb market.
If you would like to find out how GrowHOST property managers can help you achieve the above and more, contact us today.
