Driven by platforms such as Airbnb and Stayz, the short-term rental market in Australia has doubled in value over the past two years to $1bn and supports over 40,000 full-time jobs, according to a new report from MadeComfy, a short-term property management specialist.
Examining tourism in Australia over 2016-17, the report found that the demand for short-term rentals (STRs) has more than doubled over the last two years in Sydney, Melbourne, and Brisbane.
With STRs making up 11.8% of total tourist accommodation and over 8.5 million international tourists (many from China, Japan, and South Korea) coming to Australia each year, the opportunity for growth in this market is immense.
A 2017 study by economics and policy consultancy ACIL Allen found that STRs across Australia provided 7.1 million nights of accommodation in 2016, generating over $1bn in revenue. The majority of accommodation was provided in New South Wales, which saw 2.5 million nights that year. Victoria ranked second, with over 2 million nights, and Queensland third, at just over 1.2 million nights.
Combining ACIL Allen’s data with its own, MadeComfy showed that STR average weekly revenue far outperforms the long-term rental (LTR) average in all three states. The weekly LTR average for both houses and apartments in Sydney was $550, whereas the STR averages was $733 for apartments and $1,211 for houses per week.
In Melbourne, the LTR average for houses and apartments was $420 and $400 respectively, compared to the STR average of $577 for apartments and $898 for houses. Brisbane registered an LTR average of $370 for apartments and $400 for houses, as well as an STR average of $447 for apartments and $720 for houses.