Australia is a unique country. It is the largest island in the world but, also the smallest continent. There are many places to discover and activities to enjoy.
Best Places to Start an Airbnb Business in Australia in 2020
This makes it an ideal location for the short term rental market.
The largest capital cities (Sydney and Melbourne) are popular amongst domestic and international guests. However, if you want to start your own Airbnb business, you may want to look at other relatively untapped regions.
The following destinations may be lesser known than other areas. But they have various traits that make them stand out from the crowd. Whether you are looking for a quiet town, a family-friendly region, or a social hotspot, you will find the one that matches your style.
The BnB Hosts team suggests that you consider the following areas for your Airbnb business:
Located in the state of Victoria and just 45 minutes from Melbourne, Sunbury is a trending destination. In fact, Airbnb has placed it at the fourth spot in the top 20 places to visit in 2020.
According to the data, Sunbury has a 356% year-on-year increase. The suburb is the origin of The Ashes, which showcases matches between Australian and English teams. It is one of the oldest rivalries in sport.
The increase in bookings is due to different reasons. Sunbury is home to the Goonawarra Golf Club, as well as the Dingo Discovery Sanctuary. These places welcome many tourists and locals each year. CraigLee Vineyard is also a renowned hotspot with visitors flocking here every first Sunday of the month to experience the opening of the Cellar Door.
Let us also not forget that its neighbour, Melbourne, will host the ICC T20 World Cup this year. Therefore, it is expected that Sunbury will attract more guests from different areas.
2. Gold Coast
Gold Coast is not exactly unknown. In reality, it has become a major tourist destination with more than 10 million visitors every year. Of this number, almost 850,000 come from other parts of the world, and over 5 million are day-trip visitors. You can tell you cannot go wrong if you start an Airbnb business on the Gold Coast.
The coastal city is famed for its theme parks, but it also has shopping sites. For nature lovers, Gold Coast offers beaches for surfing, swimming, and relaxing. There is also an ancient rainforest, an unspoiled national park, and mountain villages. A hinterland is a great place for a unique twist to your Airbnb where you can offer accommodation for visitors.
This Australian town may not be as popular as Sydney, but it boasts a considerable increase in Airbnb bookings over the past year. Just 114 km from the state capital, Blackheath has the perfect location. It is the ultimate destination for those who want to be near Sydney, but still wish to be away from the busy city.
Blackheath has heritage-listed sites, including the Blue Mountains National Park. It also has many other attractions, including the Grose Valley, which has a waterfall nearby. Apart from sights, this town has activities people can take part in, such as taking a walk through the Blue Mountains Walking Tracks, visiting the Gallery Blackheath and playing golf at the Blackheath Golf and Community Club.
The average rent-per-room in Blackheath is $113, with an estimated income of $558. The competition here is not as fierce as Sydney and other major places. Therefore, it is perfect for those who are just starting in Airbnb.
The Tasmanian government affirms the importance of Airbnb in the state’s economy. According to the Secretary of the Select Committee on Housing Affordability, Airbnb has contributed significantly to Tasmania’s growth with guests spending $86 million on Airbnb accommodation.
The greater Hobart region has supported the expansion of local businesses while creating more jobs for people. The rapid population growth in the region has helped boost the number of rentals in the city.
The increasing housing prices are also a factor, which is why rental in the area has gained momentum in recent years. Currently, the average daily rate for Airbnb accommodations in Hobart is $208. The occupancy rate is almost 80%, which is greater than in many other cities, including Sydney.
In recent years, tourists from all over the world continue to flock to Brisbane. The whole year of 2016, the city welcomed more than 1.1 million international visitors. It broke records with its 25% increase in tourist numbers from 2012 to 2016.
The trend is not likely to change in the coming years. Brisbane continues to attract numerous visitors from far and wide. In 2018, the international visitor numbers increased by 6.7% compared to the previous year.
The most recent data from the Queensland government showed that Brisbane once again experienced significant growth in tourism with a 9.7% increase.
There are plenty of reasons why tourists choose Brisbane. For one, it has a pleasant climate with warm summers and dry winters. Travellers love different seasons, but they mostly avoid cold winters.
The friendly people in the city also make Brisbane attractive to tourists. It also caters to all groups of people, including singles, couples, families, and friends.
Airbnb in Brisbane is quite competitive, however, with almost 7,000 active listings. However, the occupancy rate is 67% with a daily rate of $150 on average. You can get a monthly revenue of $2,083 if your rental business is thriving.
6. Wagga Wagga
Wagga Wagga, another New South Wales city, is also a good choice to start an Airbnb business. Its scenic location in the breathtaking Riverina region makes it a top destination for tourists. Wagga Wagga welcomed almost 200,000 international visitors who stayed in the city for the whole night in 2018-2019.
The city offers plenty of reasons to visit, including a culture-rich adventure. With many museums and galleries, you will certainly enjoy an art-filled stop in Wagga Wagga. It also has an exciting city library and theatres where you can watch performances live.
Wagga Wagga is one of the most sought-after places in New South Wales and the whole country as well. It was a part of the trending cities for Airbnb businesses with almost 290% increase in bookings year-on-year.
Unlike major cities, Wagga Wagga has fewer competitors. The active listings are only around 160, but the occupancy rate is almost equivalent to Sydney and Melbourne. Also, the monthly revenue is approximately $2,306, with an annual rental growth of 73%.
As the capital city of South Australia, Adelaide provides numerous reasons why people should make a stopover here. It may be a bit underrated compared to other capital cities. However, Adelaide has optimistic expectations in the sharing economy and the whole housing sector.
Home sellers in the city may be happy that the prices could continue increasing the next several months. Vendors have also confirmed that the Adelaide, along with Brisbane, is a high performing city when it comes to selling homes.
If you plan to start an Airbnb adventure in this city, be prepared for some tough competition. The city typically has 4,000 active rentals, although this number is still lower than in other areas in South Australia. The occupancy rate, however, is quite high, reaching 66%.
Airbnb homeowners can expect to make at least $2,800 per month in this area.
Although Bridport is a small town, it offers plenty of reasons for you to venture in Airbnb here. The suburb has increased in rental prices over the last few years with a 9.38% change over the last 12 months. The national average is only 4.3%.
Bridport is also a fantastic choice if you are looking to purchase a house to start your Airbnb business. One of the best things you can look forward to in the area is the low number of competitors. Usually, the active rentals do not go over 70, but the occupancy rate remains high at 67%.
The city may not be as touristy as the other areas in Tasmania, but it is growing in popularity. Data showed that Bridport has over 170% increases in bookings year-on-year. If your venture is successful, you get the chance to earn $3,200 or even more every month.
Let Us Help You
Compared to long-term rentals, short-term accommodation, such as Airbnb homes, can be extremely profitable. It also offers flexibility since you can stop renting out your home anytime you wish. You are in total control, and there is not a lot of work involved when you have a reliable property management company to assist you.
Additionally, selecting the area where you will accept guests should be strategically performed. You can benefit from choosing a famous city, but the competition will be intense. Although some places are not as prominent, such as those mentioned above, you can still profit from your Airbnb.
Need further information? Let BnB Hosts help you on your journey. Contact us today and we’ll happily answer any questions you may have.