ASEAN: Airbnb Market Overview 2023

Relying on July 2022 to June 2023 data, we have reviewed 18 ASEAN cities to see which markets are profitable to run an Airbnb management business.?

While none of these Southeast Asian cities rank in the top 10 markets for Airbnb by supply or revenue size, this is still a trending and emerging region. Most popular among digital nomads, its cheap cost of living and temperate climate continue among its most competitive selling points that attract travelers across the globe. With a population growing so fast, with a median age of 29.6, nothing can stop Southeast Asia's progress.

Channels: Agoda, Booking.com, Expedia and Traveloka?

Airbnb's share is still relatively low in South East Asian markets. Airbnb contributes to about 10-20% of search volumes, whereas Agoda and Booking.com take up to 35%.?

Homeownership can be tricky for a foreigner.?

Foreign land ownership is legal in Malaysia, but this is not the case elsewhere. In most ASEAN countries like Thailand, the Philippines, and Vietnam, you can't fully own a piece of land and property. However, you can own condominium units in those countries if foreigners own less than 30-50% of the units. The excellent news is that this caveat can’t stop you from running a property management company, co-hosting a business, or doing Airbnb rental arbitrage.?

Top 18 Travel Destinations in ASEAN?

These are the 18 cities with the most active Airbnb listings as of? June 2023. They are significant cities with either huge populations or popular tourist destinations.?

Manila, HCMC, Hanoi, Kuala Lumpur, and Jakarta are the major cities of their countries, with the majority of their guests coming domestically.?

Cities like Bali, Phuket, and Bangkok heavily rely on international guests, particularly from China and the US, as the top tourist sources.?

Beach Destinations Are Booming?

People are not surprised to visit Southeast Asian countries for beaches and year-round warm weather. The median occupancy rate says, "How many nights a year a typical Airbnb listing would get booked?"?

Places like Bali, Ko Samui, and Phuket have high occupancy rates. It is also because those places are small urban cities with only limited housing supplies.

So, if you are looking to run a vacation rental, these are the cities you need to consider for a high return on investment.?

Bookings Begin to Bounce Back Post Covid Restriction

ASEAN countries lifted COVID restrictions relatively late compared to other regions. Most destinations are experiencing massive occupancy rate growth in only 2023 compared to the 2021-2022.?

Cities that heavily rely on international travelers, like Bali and Bangkok, saw the most considerable increase in occupancy.?

Beachside Rentals Set Higher Daily Rates than Urban Rentals

Destinations like Bali and Ko Samu have a median daily rate of over $150, whereas most of the cities in ASEAN have a median daily rate of less than $100.?

Rule of thumb: Pool is the most amenity in South East Asia

The pool is one of the most prevalent amenities. It also helps that many listings are condo units. This means the pool is already included when they purchase the condo unit. Plus, there needs to be regular maintenance that the owner should do.?

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Data source: Airbtics.com

Conclusion

Our team is starting to publish monthly ASEAN market reports. Are you a vacation rental manager in the ASEAN region? Sign up for this newsletter to keep updated with the ASEAN Airbnb market.