Perth has been identified as Australia’s top Airbnb market to invest in thanks to its high occupancy rate and relatively low home values.
According to international analytics company AirDNA, Perth has emerged as the most compelling destination for short-term vacation rental investment with a market score of 97 and 77 per cent occupancy rate — the highest in the country.
“For investors eyeing the Airbnb market, Perth shines brightly with a relatively low average home value,” the report highlighted.
Brisbane was a close second, with a score of 96 and impressive occupancy rate of 65 per cent.
AirDNA’s market score out of 100 factors in rental demand, revenue growth, seasonality and regulation.
“With a unique blend of urban sophistication and natural beauty, the city is a magnet for travellers seeking sun-soaked adventures,” the report stated.
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Seiko Ma, managing director of Australian short-term property management organisation Alice’s Home, said the new stats were particularly encouraging for the earning potential of the local short-term rental industry.
“It is not altogether surprising that Brisbane and Perth have come out on top. Recently, it has been challenging for the STR market in southern states. Some scrutiny and even efforts to limit the market have certainly placed a damper on growth down south,” Mr Ma said.
“However, we have seen the positive effect STR and Airbnb has had on the tourism industry by providing accommodation options to leisure and business travellers. Also, the local labour market has benefited by the industry, for example with cleaners who have the opportunity to work close to home.”
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Ms Ma said the list highlighted great location options for investors to consider in Australia, selecting them according to their rental demand, revenue growth, seasonability and regulation.
Last month, the State Government legislated to establish a registry of short-term accommodation as part of a raft of reforms to address the impact WA’s booming Airbnb market has had on the State’s rental crisis.
It will mean from July, Airbnb owners will have to pay an initial $250 registration fee plus an additional annual fee of $100 and all short stays must be registered by the start of next year.
The top Airbnb markets in Australia by market score
Perth 97
Brisbane 96
Whitsunday 96
ACT 95
Augusta Margaret River 94
Sydney 94
Newcastle 91
Hobart 87
Adelaide 87
Gold Coast 85
Source: AirDNA