Discover Australia's most lucrative Airbnb investment locations and learn which metrics you should analyze to maximize returns in Australia's booming short-term rental market.

Most Profitable Cities for Airbnb in Australia in 2025

Whitsunday, Singleton, and Exmouth are the three most profitable cities for Airbnb in Australia.

Metrics like occupancy, ADR, revPAR, seasonality, and annual revenue potential determine what truly drives profitability in Australian STR markets.

Before committing capital to any Airbnb investment in Australia, consider local regulations, perform ample market research, and determine your personal investment strategy.

Australia's short-term rental markets are absolutely exploding. While other investors squabble over traditional long-term rentals with their predictable but uninspiring 3-4% yields, STR investors are quietly pocketing returns that would make stock market enthusiasts green with envy.

You could throw a dart at a map of profitable Airbnb locations in Australia and probably do alright—the market's that hot. But why settle for alright when exceptional returns are available to those who know where to look? Each region's Airbnb rental income in Australia tells a unique story of supply, demand, and untapped potential that translates directly to your bottom line.

Read on to discover which Australian markets deserve your investment dollars in 2025.

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Top 10 Most Profitable Cities in Australia

The numbers are in for top Airbnb markets in Australia. The continent offers some impressive STR investment opportunities—if you know where to look. 

We’ve compiled a list of the 10 most profitable cities for Airbnb in Australia. The rankings below are based on annual revenue potential, which provides a standardized way to compare different markets. Just remember: These figures represent theoretical maximum earnings, not guaranteed returns.

Let's explore the top performers that deliver particularly impressive property investment returns in Australia.

How we ranked top Australian Airbnb markets

Our analysis of the most profitable cities for Airbnb in Australia is built on comprehensive market intelligence derived from thousands of data points.

This study included any market with 100 or more listings. That cutoff isn't arbitrary—it reflects Australia's relatively small population density of just 8.8 people per square mile (compared to the USA's 95) to ensure we're comparing established markets rather than outliers with too few data points to be statistically significant.

While we tracked over 15 performance indicators—from occupancy trends to average length of stay—annual revenue potential emerged as our primary ranking metric. Why this figure above all others? Unlike ADR, which fails to account for vacant nights, or even revPAR, which provides a useful but limited daily snapshot, annual revenue potential offers the comprehensive perspective investors need to compare dissimilar markets.

Think of property investment returns in Australia like evaluating different career paths—you wouldn't compare an hourly wage to an annual salary. Revenue potential provides that annualized view, making it easier to weigh a beachside property with sky-high summer rates against a business district flat with steady year-round occupancy.

Using revenue potential as our primary ranking factor streamlines comparisons while still reflecting the combined impact of pricing power and market demand. The data reveals that while ADR might grab headlines, consistent performance across both pricing and occupancy delivers the strongest bottom-line results for Airbnb investment in Australia. 

Note that all revenue numbers are in AUD. 

Located in tropical North Queensland, Whitsunday tops Australia's profitable Airbnb locations list with just over $141K in annual revenue potential, supported by an ADR of $602 and the highest RevPAR in Australia at $414.

This archipelago of 74 islands within the Great Barrier Reef Marine Park attracts diverse tourists year-round. Airlie Beach serves as the gateway to attractions like world-famous Whitehaven Beach. The region's appeal peaks from July through December, which coincides with most of the region’s dry season.

Hunter Valley's Singleton boasts Australia's highest ADR at a remarkable $862, driving its impressive $116K annual revenue potential. 

This inland destination, located about 200 km north of Sydney, offers a unique blend of wine tourism and mining industry accommodation demands. The region's renowned vineyards attract weekend travelers, while business visitors maintain midweek occupancy. Popular for its wineries, scenic countryside, and proximity to Barrington Tops National Park, Singleton delivers strong investment returns throughout the year.

Situated on Western Australia's North West Cape, Exmouth boasts nearly $102K in annual revenue potential. This remote coastal town serves as the gateway to Ningaloo Reef, one of the world's largest fringing reefs and a UNESCO World Heritage site. Exmouth's primary appeal comes from seasonal attractions like whale shark swimming (March-July) and humpback whale watching (August-October). The destination's limited accommodation supply and strong demand contribute to its solid RevPAR performance.

Another Hunter Valley gem, Cessnock commands Australia's third-highest ADR at $676 and nearly $97K in annual revenue potential. 

This wine region hub, located just 150 km north of Sydney, serves as the gateway to over 150 wineries and cellar doors. Beyond wine tourism, Cessnock attracts visitors with its golf courses, hot air ballooning opportunities, and proximity to the Hunter Valley Gardens. The area's popularity for weekend getaways and corporate retreats supports year-round demand—in fact, Cessnock secures an 86 Seasonality Score in AirDNA, which indicates very low seasonality. 

Iconic Byron Bay ranks fifth with $95K annual revenue potential and Australia's third-highest RevPAR at $324.

Located on NSW's far north coast, this former bohemian surfing town has transformed into a stylish coastal destination attracting celebrities, digital nomads, and wellness seekers. Byron's appeal stems from its stunning beaches, laidback atmosphere, thriving food scene, and retreats and spas. The town's popularity has grown substantially in recent years, particularly among domestic travelers.

Although it has a considerably lower ADR than other cities and a seemingly average revPAR, Western Australia's Busselton generates over $91K in annual revenue potential. 

This coastal city, located 220 km south of Perth, is famous for its 1.8 km-long jetty—the longest timber-piled jetty in the southern hemisphere. Serving as the gateway to the renowned Margaret River wine region, Busselton attracts visitors with its pristine beaches, underwater observatory, and annual sporting events including the Ironman Western Australia triathlon. Its dual appeal as both a beach destination and wine region hub creates year-round demand.

Coastal Kiama ranks seventh with nearly $91K in annual revenue potential, supported by Australia's sixth-highest ADR at $610. 

Located on NSW's South Coast about 120 km from Sydney, this seaside town is famous for its blowhole, where water can spray up to 25 meters high during ideal conditions. Kiama attracts weekend visitors from Sydney with its beaches, coastal walks, historic buildings, and charming town center. Its accessibility makes it particularly popular for short getaways throughout the year.

Sun-soaked and vibrant, the Gold Coast delivers a compelling $87K in annual revenue potential without even cracking the top ADR charts. 

This coastal playground stretches across 57 km of pristine beaches. From the iconic Surfers Paradise skyline to the thrilling rides at Dreamworld, the region masterfully balances family-friendly attractions with sophisticated dining and nightlife. What sets Gold Coast apart for investors? Its remarkably consistent year-round performance, driven by domestic holidays, international tourism, and a growing business events calendar.

Straddling the NSW/Queensland border, Tweed offers $86K in annual revenue potential with a strong $500 ADR. 

This coastal region benefits from its strategic position between the Gold Coast and Byron Bay, offering pristine beaches without the crowds or prices of its famous neighbors. Tweed attracts visitors seeking a more relaxed coastal experience with attractions including Mount Warning, the Tweed Regional Gallery, and the Tweed River. Its subtropical climate supports year-round tourism.

Rounding out the top 10, Wingecarribee delivers over $85K in annual revenue potential and Australia's eighth-highest ADR at $576.

This Southern Highlands region, located 110 km southwest of Sydney, offers an appealing escape featuring historic villages, cool-climate wineries, and garden estates. Bowral, its main town, hosts the annual Tulip Time festival and serves as a base for exploring the area's natural beauty. The region's four distinct seasons create diverse seasonal appeal throughout the year.

Other Leading Australian Cities for Airbnbs

Investment opportunities aren’t limited to the top 10 already shared. Rankings 11-20 have the potential to put upwards of $80,000 in host pockets:

Gain insights into the revenue and occupancy trends in your market.

What Really Drives Airbnb Profitability in Australia

Just like you wouldn't buy a stock without checking its fundamentals, you shouldn't invest in an Airbnb without scrutinizing the metrics that predict its performance. The difference between an Airbnb investment in Australia that bleeds cash and one that generates wealth comes down to math and metrics.

A beautiful beachfront property sitting empty is just an expensive hobby, not an investment. Markets with consistently high occupancy are the foundation for sustainable profitability that amateur investors often overlook while being dazzled by peak season potential.

Your average daily rate (ADR)—essentially the amount you charge each night—plays a role in your annual profits.

That said, while ADR might seem like the star of the show, it's actually more of a supporting character. Yes, charging $500/night sounds impressive, but if your property sits vacant half the year, you're leaving money on the table. The real magic happens at the intersection of price and demand—finding that sweet spot where your calendar stays full without unnecessarily discounting your property's value.

Revenue per Available Room (RevPAR) tells the complete story that ADR and occupancy only hint at. Think of revPAR as the truth serum of short-term rental markets in Australia—it cuts through the noise and reveals exactly how much revenue each unit generates, making market comparisons crystal clear. 

Seasonality isn't the boogeyman most novice investors fear. While amateurs panic about Australian markets with distinct high and low seasons, experienced investors seek markets with diverse demand drivers. 

A tourist hotspot that doubles as a business hub can deliver year-round performance—think Gold Coast attracting beach-goers in summer and conference attendees in winter. 

Markets with flatter demand curves might not deliver those intoxicating peak-season windfalls, but they'll keep your bank account healthy with consistent monthly deposits while seasonal-only markets sit dormant.

Annual revenue potential stands as the north star metric for Airbnb profitability in Australia. It represents the theoretical maximum a property could earn if booked 365 days per year at market rates—essentially your property's earning ceiling. This figure provides a standardized way to compare markets, similar to how salary ranges help job seekers evaluate different career opportunities.

Unlike ADR or occupancy rates, revenue potential combines pricing power with market demand to provide a comprehensive snapshot of profitability. It's particularly valuable when comparing dissimilar markets like coastal getaways versus urban business hubs, where nightly rates and booking patterns differ dramatically. For investors weighing options across diverse short-term rental markets in Australia, this creates an apples-to-apples comparison that cuts through market-specific noise.

That said, we have to drop a reality check: There’s a gap between potential revenue and actual earnings. For example, Whitsunday tops our rankings with an eye-popping revenue potential of approximately $144K per property. Impressive, until you realize only 57% of Whitsunday properties are available year-round, which brings the actual average annual revenue down to $81.7K—almost exactly 57% of the theoretical ceiling. This mathematical relationship repeats across profitable Airbnb locations in Australia, where maintenance periods, owner usage, and seasonal closures consistently reduce actual earnings.

When comparing investment opportunities across regions, you'll find that no two markets behave alike.

The performance metrics we discussed above inevitably reveal dramatic regional variations across Australia's vacation rental landscape. Byron properties might command twice the nightly rate of comparable Cessnock properties, while Gold Coast's steady demand profile looks nothing like Exmouth's pronounced seasonality. 

For investors targeting high-demand Airbnb markets in Australia, understanding these distinct regional personalities makes the difference between purchasing a cash-flowing asset and an expensive liability.

So which metrics matter most? All of them—but in the right context and with proper weighting. 

Australia's unique geography and diverse climate contribute to a dynamic vacation rental market influenced by seasonality, weather patterns, and holidays. With its vast expanse spanning from the tropical north to the temperate south, the Land Down Under experiences a range of climatic conditions throughout the year, shaping traveler preferences and rental demand.

It’s no surprise that Australia’s high season (roughly December through February) coincides with its summer season. In summertime, Australia truly is the lucky country where visitors can expect spectacular festivals in Melbourne and Sydney, cloudless days on the Sunshine Coast, and vibrant coral blooms on the Great Barrier Reef. 

Of course, the high summer season isn’t the only good time to travel. Given the country’s relatively temperate climate, the wintertime still attracts plenty of travelers. In fact, winter sees a spike in popularity for destinations like the Snowy Mountains and Victorian High Country, where snow enthusiasts seek out alpine adventures and cozy mountain retreats.

In addition to seasonal fluctuations, Australian holidays play a significant role in shaping the short-term rental industry. Major holidays such as Christmas, New Year's Eve, Australia Day (January 26), Easter, and school holidays drive peak travel periods and heightened demand for accommodation. Coastal regions and popular tourist destinations experience a surge in bookings during these times, as families and holidaymakers embark on vacations and weekend getaways.

What to Consider When Choosing a Profitable Airbnb Location in Australia

The data clearly shows which Australian cities for Airbnb deliver the strongest raw numbers, but it’s worth looking beyond headline figures to evaluate long-term viability. Before committing capital to any Airbnb investment in Australia, consider market research, your personal investment strategy, and local regulations.

Your gut might tell you a beachfront investment property is a no-brainer, but the data frequently tells a different story. Dig beyond the surface-level revenue figures we've highlighted to uncover other key factors, like:

Occupancy patterns throughout the year, not just averages

Weekend vs. weekday performance differentials

Seasonality’s impact on pricing and booking windows

Supply growth trends and new development pipelines

Guest demographics and their corresponding amenity preferences

AirDNA's market intelligence tools reveal these insights with surgical precision, spotlighting opportunities that casual observation misses. A market with modest nightly rates but consistent bookings often fills your bank account faster than glamorous destinations with high ADRs and lengthy vacancy periods.

The best investors take their market research one step further by benchmarking their target market against comparable destinations. This competitive perspective exposes both hidden advantages and lurking risks that single-market analysis can't capture. 

Your personal investment goals should dictate market selection rather than headlines about the "hottest" areas. Potential rental returns across Australia vary dramatically by location, each suited to different investment goals:

For cashflow-focused investors, stable year-round markets like Gold Coast may serve you better than highly seasonal destinations with dramatic revenue swings. 

Investors with diversified portfolios might willingly accept off-season vacancies in exchange for extraordinary peak-season returns in markets like Exmouth.

Similarly, your management approach influences location viability. 

Self-managers generally succeed in markets within driving distance of their primary residence.

Investors who rely on professional property management should target areas with an established vacation rental infrastructure and multiple competing management companies to ensure service quality and reasonable fees.

The scale of your ambitions also matters. Single-property investors face different considerations than those building a portfolio. Markets with higher barriers to entry often reward larger operators who can achieve economies of scale across multiple units, while smaller investors might find better opportunities in emerging areas with lower acquisition costs and less competition.

Lastly, local regulations directly impact the viability of a short-term rental business in your area

AirDNA allows you to handpick the active short-term rentals that align with your investment criteria and shows you exactly how a similar property performs in the real world.

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State-by-State Airbnb Regulations and Requirements

Australia's regulations on short-term rental markets vary dramatically by location, with significant implications for your investment strategy. While some councils embrace vacation rentals with minimal restrictions, others have implemented policies like:

Overall, Australia’s short-term rental landscape is rapidly changing, with most states and territories moving toward mandatory property registration and stricter rental caps by 2025. Area-specific regulations include:

Sydney slashes your potential operating days in half with its 180-day cap on unhosted rentals.

Western Australia has initiated a notable incentive of $10,000 to encourage hosts to switch from short-term to long-term rentals in an effort to address housing affordability.

New South Wales stands out with its 180-day annual limit in Greater Sydney and a 60-day cap in the Byron Shire region, paired with a mandatory Code of Conduct to protect neighbors and guests. 

Tasmania plans a 5% traveler levy aimed at generating additional revenue to support first-time homebuyers.

Before purchasing any investment property, investigate whether it falls within compliant zoning, what permits are required, and whether any pending legislation could affect your operations. Anticipate future restrictions by maintaining relationships with local property managers, lawmakers, and STR activists who can tip you off to regulatory whispers that might impact your Airbnb profitability in Australia before those changes hit the news.

Hosts throughout Australia must also be mindful of tax obligations since the Australian Taxation Office directly receives income data from platforms like Airbnb under the Sharing Economy Reporting Regime. Given these fragmented and evolving rules, it’s essential that prospective hosts consult local councils and tax professionals before listing their properties.

Why Should You Invest in Airbnb Properties in Australia?

Although the Australian travel industry took a pandemic-induced hit between 2020 and 2021, tourism in Australia has been growing since. While interest rates in the country are high as of publication in 2024, Aussies are still traveling domestically (and the country is seeing growth in international tourism, too). In fact, according to Forbes, higher interest rates on savings are helping to increase discretionary funds for many Australians, who are in turn choosing to spend more on travel. 

According to Julie George, the author of Million Dollar Host, “the STR industry in Australia is alive and well amidst the regulations brewing in some geographic locations.”

However, vigilance is key, as is always the case in STR investing. “It is important to be vigilant of the new rules certain areas are imposing and do your due diligence when considering investing in short-term rental properties,” George says. “I encourage all real estate investors to investigate the supply and demand in areas of interest and research the potential return on investment by using AirDNA. This software is easy to use, offers incredible value, and will be life-changing if it can help identify your next investment property.”

Here’s a breakdown of some of the biggest potential benefits of investing in Airbnb properties in Australia: 

According to a report published by the Australian Trade and Investment Commission, domestic tourism spending has already exceeded pre-pandemic levels and will continue to rise. Meanwhile, international travel is growing too. International travel to Australia is expected to exceed pre-pandemic levels by 2025, while international traveler spend in the country should exceed pre-pandemic levels sometime this year in 2024.

Travelers want alternative accommodations 

Another primary reason to consider investing in Airbnb properties in Australia is the strong and growing demand for alternative accommodations. As travelers increasingly seek unique and immersive experiences, the traditional hotel model is being disrupted by the rise of vacation rentals. 

Airbnb offers something for every type of traveler, whether guests want to rent entire houses or just private rooms on a budget. Plus, Airbnb gives travelers the chance to stay in local neighborhoods, enjoy personalized accommodation experiences, and live like a local, fostering a sense of authenticity and connection that traditional accommodations often lack.

Understand the investment potential of any address in the world. 

Top Booking Platforms for Australian Airbnbs

In Australia's booming vacation rental market, Airbnb and Vrbo stand out as the booking platform favorites among Australian Airbnb hosts, though local alternatives like Stayz also maintain popularity.

Historically, Airbnb has led the pack. Almost 70% of STRs in Australia are only listed on Airbnb. Approximately 7% of vacation rentals are listed only on Vrbo, while about 25% are cross-listed on both Airbnb and Vrbo.

Stayz, on the other hand, caters more to domestic holidaymakers seeking traditional, family-friendly getaways, often in coastal or countryside locales. Originally an Australian brand, Stayz continues to attract a loyal following through its direct marketing efforts and wide presence in local search engines. Listing properties on both Airbnb and Stayz can be a profitable strategy, especially for second-home owners or those hoping to optimize occupancy year-round. 

These platforms provide Australian Airbnb hosts with global exposure and guests with diverse options, shaping the vibrant landscape of short-term rentals in Australia. For travelers looking to experience Australia like locals, shows such as "Instant Hotel" on Netflix have also popularized the unique accommodations available across the country.

In Australia, the majority of Airbnb guests are domestic locals—but the country sees plenty of international Airbnb guests, too. In 2023, just over three quarters (76.8%) of reviews on Airbnbs in Australia were written by domestic travelers. Other major origins for travelers included the United Kingdom (4.6%), United States (3.9%), New Zealand (2.3%), Singapore (1.8%), and Canada (1.3%).

Australia’s holiday rental industry relies heavily on domestic tourism. Spikes in domestic guests coincide with public school’s Term 1, Term 2, Term 3, and Term 4 holidays, which fall during the months of April, July, October, and December/January, respectively. During these periods of time, domestic guests make up approximately 90% of total travelers.

On the other hand, international tourists are most likely to book short-term rentals in Australia during the months of March, November, December, and January. Travelers from other countries make up about 20-30% of total guests during these times of the year. While the number of international short-term rental guests has declined since the 2020 COVID pandemic, rates are approaching pre-pandemic levels. 

Are you ready to tap into Australia’s growing short-term rental market? Let AirDNA help you find the right property for your vacation rental business.

Absolutely—Airbnb has a strong presence in Australia, spanning major metropolises and remote locales alike. Its user-friendly platform allows hosts to list everything from vineyards and beachside bungalows to urban apartments and outback cabins. With increasing domestic travel and a resilient tourism sector, Australians have embraced Airbnb’s short-term rental model. Many hosts across the country use Airbnb to supplement their income or invest in a dedicated STR business.

What is the Australian version of Airbnb?

Stayz is widely regarded as the Australian equivalent to Airbnb, specializing in traditional holiday homes for Aussie families. Established in 2001, it became a local favorite long before the rise of modern short-term rental platforms. Now part of Expedia Group, it shares similarities with Vrbo, which also focuses on entire-home listings. Hosts who prefer local travelers often find success on Stayz due to its deep roots in the Australian market. Many property owners list on both Airbnb and Stayz to boost their overall visibility.

What metrics should I use to evaluate Airbnb profitability in Australian cities?

Focus on RevPAR (revenue per available room) rather than just ADR, as it accounts for both pricing and occupancy. Annual revenue potential provides the clearest picture of earning capacity, but remember to factor in seasonality, operating expenses, and regulatory constraints that might limit available rental days.

How do local regulations across Australia affect Airbnb investment returns?

Regulatory frameworks vary across Australia, from Sydney's 180-day cap on unhosted rentals to stricter limitations in Byron Bay. These constraints directly impact revenue potential and can transform seemingly attractive investments into underperformers. Stay informed about both current rules and pending legislation in your target market.

How can I use AirDNA’s data to identify profitable Airbnb markets in Australia?

AirDNA's comprehensive analytics help you look beyond surface metrics to examine factors including occupancy patterns, seasonality, demand trends, and competitive supply growth. Use these insights to identify markets with the optimal balance of pricing power and booking frequency that aligns with your investment strategy.

Explore the top 10 Airbnb markets in Australia and why now is the time to invest in Airbnb properties there.

The Top 10 Airbnb Markets in Australia

Key Takeaways:
Investing in Australian Airbnb properties offers promising returns due to growing tourism, demand for alternative accommodations, and clear regulatory frameworks.
The Australian Airbnb rental market experiences fluctuations influenced by seasonality, weather patterns, and holidays.
Australia boasts a variety of profitable Airbnb investment locations, ranging from vibrant cities to scenic coastal destinations. 

With breathtaking landscapes, vibrant cities, and diverse culture, Australia has emerged as a hotspot for property investors seeking lucrative opportunities in the vacation rental market. As the demand for unique and immersive travel experiences continues to rise, savvy investors are turning to Airbnb properties as a means to capitalize on this trend. 

In this article, we dive into the realm of Australian real estate, uncovering the top 10 most profitable Airbnb locations in Australia. You’ll also learn about the benefits of investing in the Australian STR market and which vacation rental channels the Aussies use and love most.

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Top 10 Airbnb Markets in Australia

From vibrant cities with bustling central business districts to serene coastal getaways with beautiful beaches, Australia boasts a variety of lucrative destinations for short-term rentals. 

Methodology

We’ve ranked the  top 10 most profitable Airbnb locations in Australia by AirDNA Market Score, revealing the best locations where investors can maximize returns amidst the nation's bustling tourism scene.

AirDNA’s Market Score is a unique score that tells you how well a market is performing out of 100 based on 4 different factors:

Rental Demand: Rental demand measures how popular a market is in terms of bookings. The rental demand score shows how booking performance has changed from the same time last year. A high score indicates high booking demand.
Revenue Growth: This factor measures whether rental listings in this location earned more this month than they did during the same month last year. We calculate this by measuring year-over-year (YOY) change in Revenue per Available Rental (RevPAR).
Seasonality: This factor considers how much seasonality affects a market. In other words, are bookings made at specific times of the year or are they consistent month after month? A high score indicates low seasonality and consistent bookings.
Regulation: Our regulation score measures how strictly short-term rentals are regulated in a given market. A high score means fewer regulations. 

These 4 factors are synthesized to create one overall Market Score.

Note that the Market Score for U.S. locations takes into account a fifth factor, Investability. Investability considers whether a market presents a good investment opportunity. The investability score is calculated by measuring average revenue potential against average mortgage cost.

1. Perth

Average Home Value: $660,000
Occupancy: 77%
Average Daily Rate: $223

The capital and largest city of Western Australia, Perth is nestled on the scenic Swan River. With a unique blend of urban sophistication and natural beauty, the city is a magnet for travelers seeking sun-soaked adventures. 

For investors eyeing the Airbnb market, Perth shines brightly with a relatively low average home value. Perth boasts the highest average occupancy rate (77%) in the country. With a daily rate averaging $223 and a remarkable RevPAR of $163.90, Perth emerges as the most compelling destination for short-term vacation rental investment in Australia.

Explore Perth

2. Brisbane

Median Home Value: $801,000
Occupancy:  65%
Average Daily Rate: $264

Brisbane, the capital of Queensland, sits along the picturesque Brisbane River, offering a vibrant blend of urban sophistication and laid-back charm. Nestled between the Gold Coast and the Sunshine Coast, Brisbane boasts a subtropical climate, world-class dining, and an array of cultural events and attractions, making it a sought-after destination for travelers from around the globe. 

The city presents an enticing opportunity for investors eyeing Brisbane’s STR market. While the median home value tops $800,000, hosts can expect a respectable average occupancy rate of 65%, a daily rate averaging $264 and an impressive RevPAR of $165.50.

Explore Brisbane

3. Whitsunday

Occupancy: 72%
Average Daily Rate: $620
RevPAR: $427.10

Whitsunday, a tropical paradise nestled in the heart of the Great Barrier Reef, beckons with its pristine beaches, crystal-clear waters, and lush rainforests. Located off the coast of Queensland, this enchanting archipelago is renowned for its stunning natural beauty and abundance of marine life, making it a magnet for travelers seeking idyllic island getaways. 

Whitsunday is one of the best locations in Australia for Airbnb investors. With an impressive average occupancy rate of 72% (the second highest in the country), Whitsunday offers a lucrative opportunity for property investment in the thriving short-term rental market. This island destination also stands apart by boasting the highest average daily rate of $620 and the highest RevPAR at $427.10.

Explore Whitsunday

4. Australian Capital Territory

Occupancy: 62%
Average daily rate: $219
RevPAR: $129.20

The Australian Capital Territory (ACT), home to Australia's capital city, Canberra, offers a captivating blend of culture, history, and natural beauty. Nestled amidst picturesque bushland and rolling hills, Canberra boasts a vibrant arts scene, world-class museums, and iconic landmarks, making it a compelling destination for travelers seeking enriching experiences. 

Investors keen on tapping into the ACT’s Airbnb market have an intriguing opportunity with an occupancy rate of 62% and solid performance metrics. With an average daily rate of $219 and a RevPAR of $129.20, the ACT showcases its potential as a promising investment destination for those looking to capitalize on the capital's allure.

Explore Australian Capital Territory

5. Augusta Margaret River

Occupancy: 68%
Average daily rate: $359
RevPAR: $228.60

Nestled in the heart of Western Australia's stunning Margaret River region, Augusta Margaret River beckons tourists with its rugged coastline, lush vineyards, and towering karri forests. Renowned for its world-class wineries, stunning beaches, and outdoor adventures, this picturesque destination offers a perfect blend of relaxation and exploration for travelers seeking a taste of the good life. 

Boasting an occupancy rate of 68%, the Augusta Margaret River region has demonstrated its capacity to attract visitors again and again. Paired with an average daily rate of $359 and an impressive RevPAR of $228.60, Augusta Margaret River is a prospect for would-be Airbnb hosts that’s worth checking out.

Explore Augusta Margaret River

6. Sydney

Median home value: $1,069,000
Occupancy: 67%
Average daily rate: $335
RevPAR: $217.70

The iconic harbor city of Sydney captivates visitors with its dazzling skyline, world-famous landmarks, and vibrant cultural scene. From the Sydney Opera House to the golden sands of Bondi Beach, this cosmopolitan metropolis offers a wealth of experiences for travelers seeking urban excitement and coastal charm. 

While Sydney’s barrier to entry is high with a median home value surpassing $1,000,000, it remains a compelling short-term rental market with promising revenue potential and strong performance metrics. The city has demonstrated its allure to visitors with an average occupancy rate of 67%, an average daily rate of $335, and a robust RevPAR of $217.70.

Explore Sydney

7. Newcastle

Occupancy: 59%
Average daily rate: $319
RevPAR: $182.20

On the stunning coastline of New South Wales, Newcastle offers world-class beaches, a vibrant arts scene, and laid-back coastal charm. As one of Australia's oldest cities, Newcastle blends historic architecture with modern amenities, offering visitors a unique blend of culture and relaxation. 

Despite having the lowest occupancy rate among the top 10 Airbnb markets in Australia, Newcastle boasts a high average daily rate of $319 and a respectable RevPAR of $182.20. Whether it's soaking up the sun on Newcastle Beach or exploring the city's thriving dining and entertainment scene, Airbnb investors can capitalize on the city's coastal allure for sustainable STR returns and long-term growth.

Explore Newcastle

8. Hobart

Median home value: $662,000
Occupancy: 67%
Average daily rate: $280
RevPAR: $178.80

Located in Tasmania, Australia’s southernmost island, Hobart invites visitors to discover its rich history and breathtaking natural beauty. From the historic streets of Salamanca Place to the towering peaks of Mount Wellington, Hobart offers a myriad of experiences for travelers seeking adventure and culture—and maybe a Tasmanian devil sighting!

Despite its relatively low average daily rate of $280 compared to other top destinations, Hobart boasts a respectable RevPAR of $178.80 and a solid occupancy rate of 67%. 

Explore Hobart

9. Adelaide

Median home value: $723,000
Occupancy: 62%
Average daily rate: $291
RevPAR: $169.50

Set against the backdrop of South Australia's rolling hills and vineyard-dotted landscapes, Adelaide beckons tourists with its blend of cultural sophistication and laid-back charm. From the bustling streets of Rundle Mall to the serene parklands of Adelaide Hills, the city offers a diverse array of experiences for travelers seeking a taste of Australian hospitality. 

Despite a relatively lower occupancy rate of 62%, Adelaide showcases its potential as an Airbnb investment hotspot with solid performance metrics. For example, Adelaide Airbnb hosts see average daily rates of $291 and a respectable RevPAR of $169.50. 

Explore Adelaide

10. Gold Coast

Median home value: $801,000
Occupancy: 67%
Average daily rate: $299
RevPAR: $258.10

Along the sun-kissed shores of Queensland lies the Gold Coast, a vibrant playground renowned for its golden beaches, iconic skyline, and adrenaline-fueled attractions. From the glittering skyscrapers of Surfers Paradise to the lush hinterland of Lamington National Park, the region offers travelers an irresistible blend of coastal beauty and urban excitement. 

With a solid occupancy rate of 67%, the Gold Coast demonstrates its allure to travelers. Notably, the city boasts the second-highest average daily rate among the top 10 Airbnb markets in Australia, standing at $299. With a RevPAR of $258.10, the Gold Coast shines as a lucrative investment destination in the Airbnb market. 

Explore Gold Coast

How Rankings Change Based on Revenue

We’ve ranked Australian markets based on their overall performance—as represented by their AirDNA Market Score—but the top 10 rankings shift if you look at revenue alone. 

Perhaps unsurprisingly, the Whitsunday islands off the coast of Queensland have the highest earning potential at $164,200. This is likely due to the area being a renowned tourist destination and the natural geography limiting the number of accommodations available in comparison to more urban areas. 

Perth, which is number one overall for market performance, falls to ninth place for revenue potential with a more modest yearly income of $60,000. 

Across all locations, however, the actual revenue earned by hosts in the last 12 months falls short of their earning potential. This discrepancy between potential and actual revenue comes down to the number of days that the rental is available. Hosts who offer their properties year-round are more likely to maximize their revenue. In reality, though, the majority of short-term rental owners are not offering their properties 365 days per year. 

Australian Market Summary

Australia's unique geography and diverse climate contribute to a dynamic vacation rental market influenced by seasonality, weather patterns, and holidays. With its vast expanse spanning from the tropical north to the temperate south, the Land Down Under experiences a range of climatic conditions throughout the year, shaping traveler preferences and rental demand.

It’s no surprise that Australia’s high season (roughly December through February) coincides with its summer season. In summertime, Australia truly is the lucky country where visitors can expect spectacular festivals in Melbourne and Sydney, cloudless days on the Sunshine Coast, and vibrant coral blooms on the Great Barrier Reef. 

Of course, the high summer season isn’t the only good time to travel. Given the country’s relatively temperate climate, the wintertime still attracts plenty of travelers. In fact, winter sees a spike in popularity for destinations like the Snowy Mountains and Victorian High Country, where snow enthusiasts seek out alpine adventures and cozy mountain retreats.

In addition to seasonal fluctuations, Australian holidays play a significant role in shaping the short-term rental industry. Major holidays such as Christmas, New Year's Eve, Australia Day (January 26), Easter, and school holidays drive peak travel periods and heightened demand for accommodation. Coastal regions and popular tourist destinations experience a surge in bookings during these times, as families and holidaymakers embark on vacations and weekend getaways.

Why Should You Invest in Airbnb Properties in Australia?

Although the Australian travel industry took a pandemic-induced hit between 2020 and 2021, tourism in Australia has been growing since. While interest rates in the country are high as of publication in 2024, Aussies are still traveling domestically (and the country is seeing growth in international tourism, too). In fact, according to Forbes, higher interest rates on savings are helping to increase discretionary funds for many Australians, who are in turn choosing to spend more on travel. 

According to Julie George, the author of Million Dollar Host, “the STR industry in Australia is alive and well amidst the regulations brewing in some geographic locations.”

However, vigilance is key, as is always the case in STR investing. “It is important to be vigilant of the new rules certain areas are imposing and do your due diligence when considering investing in short-term rental properties,” George says. “I encourage all real estate investors to investigate the supply and demand in areas of interest and research the potential return on investment by using AirDNA. This software is easy to use, offers incredible value, and will be life-changing if it can help identify your next investment property.”

Here’s a breakdown of some of the biggest potential benefits of investing in Airbnb properties in Australia: 

Demand Is Growing

According to a report published by the Australian Trade and Investment Commission, domestic tourism spending has already exceeded pre-pandemic levels and will continue to rise. Meanwhile, international travel is growing too. International travel to Australia is expected to exceed pre-pandemic levels by 2025, while international traveler spend in the country should exceed pre-pandemic levels sometime this year in 2024.

Travelers Want Alternative Accommodations 

Another primary reason to consider investing in Airbnb properties in Australia is the strong and growing demand for alternative accommodations. As travelers increasingly seek unique and immersive experiences, the traditional hotel model is being disrupted by the rise of vacation rentals. 

Airbnb offers something for every type of traveler, whether guests want to rent entire houses or just private rooms on a budget. Plus, Airbnb gives travelers the chance to stay in local neighborhoods, enjoy personalized accommodation experiences, and live like a local, fostering a sense of authenticity and connection that traditional accommodations often lack.

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Regulations Are Clear

Australia boasts a stable and transparent legal framework governing the short-term rental market, providing investors with confidence and security in their Airbnb investment property. 

With clear regulations in place, investors can navigate the market with ease and ensure compliance with local laws and regulations. Furthermore, the proliferation of online platforms and booking channels makes it easier than ever for property owners to market their rentals, attract guests, and manage bookings efficiently.

Plenty of Profitable Airbnb Locations to Go Around 

When it comes to profitable Airbnb investing in Australia, you really can’t go wrong with any location Down Under. The majority of cities and destination markets in Australia have seen rental and revenue growth year-over-year.

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Most Popular Vacation Rental Channels in Australia

In Australia's booming vacation rental market, Airbnb and Vrbo stand out as the booking platform favorites among short-term rental hosts.

Airbnb leads the pack, offering a user-friendly interface and a vast array of unique accommodations. Between these two major booking platforms, almost 70% of STRs in Australia are only listed on Airbnb.

HomeAway, now part of Vrbo, focuses on whole-home rentals and family-friendly options. 7% of vacation rentals are listed only on Vrbo, while 25% are cross-listed on both Airbnb and Vrbo.

Stayz is a local favorite, particularly for beachside retreats, while Expedia offers a comprehensive range of accommodations along with travel booking services. Booking.com is also prominent, known for its extensive inventory and easy booking process. 

These platforms provide hosts with global exposure and guests with diverse options, shaping the vibrant taylandscape of Airbnb rentals in Australia.

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Where Airbnb Guests Are Traveling From

In Australia, the majority of Airbnb guests are domestic locals—but the country sees plenty of international Airbnb guests, too. In 2023, just over three quarters (76.8%) of reviews on Airbnbs in Australia were written by domestic travelers. Other major origins for travelers included the United Kingdom (4.6%), United States (3.9%), New Zealand (2.3%), Singapore (1.8%), and Canada (1.3%).

Australia’s holiday rental industry relies heavily on domestic tourism. Spikes in domestic guests coincide with public school’s Term 1, Term 2, Term 3, and Term 4 holidays, which fall during the months of April, July, October, and December/January, respectively. During these periods of time, domestic guests make up approximately 90% of total travelers.

On the other hand, international tourists are most likely to book short-term rentals in Australia during the months of March, November, December, and January. Travelers from other countries make up about 20-30% of total guests during these times of the year. While the number of international short-term rental guests has declined since the 2020 COVID pandemic, rates are approaching pre-pandemic levels. 

Are you ready to tap into Australia’s growing short-term rental market? Let AirDNA help you find the right property for your vacation rental business.

Explore the top 10 Airbnb markets in Australian and why now is the time to invest in Airbnb properties in Australia.

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