Oceania: September Airbnb Market Report

• The average Airbnb Occupancy Rate in the Oceania region increased in August compared to July by 3%.??
• The average Airbnb Occupancy Rate in the Oceania region increased in August 2023 compared to August 2022 by 10%?
• Urban markets like Sydney, Perth, and Brisbane recorded high occupancy in August.?
• HereToStay on October 9th and 10th in Sydney. Meet the Airbtics team there!
• Melbourne is set to regulate short-term rentals from March 2024.

Data source: Airbtics.com

Is Melbourne likely to follow suit??

Australia's housing market is becoming more unaffordable due to elevated interest rates and property prices. Due to these, the Australian government has been attempting to introduce new regulations on short-term rentals in major cities like Melbourne and Canberra.?

Melbourne has the most considerable number of Airbnb listings in the Oceanian region, and it is now at risk of being regulated starting in March next year. The Melbourne hosts can only let out their homes on a short-term basis for 180 days max per year.?

The top 5 vacation rental managers in Melbourne are MadeComfy (388 listings), FlexIsStayz (286 listings), Advante Homes (207 listings), Property Mums (149 listings), and Jellis Craig Short Stay (132 listings).?

Cities with strict Airbnb Regulations are suffering from STR shortage.??

Cities with Highest Occupancy rates in August

• Queenstown: More than 50% of Airbnb listings were fully booked in August. Queenstown is heavily regulated. However, landlords in many areas have recently been allowed to rent their units for 90 days without consent. Getting permission from local governments could be tricky for a new Airbnb host. But if you partner or get help from an experienced professional, the process will be much easier as this city needs more Airbnb listings.?

• Brisbane: The median Airbnb listing's occupancy was 98%.?

• Sydney: The city with 180 days of Airbnb regulation is also undergoing a supply shortage. A typical Airbnb listing was 30 nights booked out of 31 nights in Sydney.?

Cities with Lowest Occupancy Rates in August

Cities with the lowest occupancy rates this August are Bass Coast and Surf Coast. The main reason is temperature. Those are coastal cities, and temperatures in these towns are about 5 degrees Celsius colder than Sunshine Coast and Gold Coast.?

It's not a surprise that colder coastal cities near Melbourne are not highly occupied this August, such as Bass Coast and Surf Coast, which are only booked for 10.5 nights on average.?

Influx of International Travellers??

Cities with the highest demand growth in August compared to last year's August?

• Fiji - The average occupancy rate almost doubled in Fiji in 2023 compared to 2022. Unlike other Australian and New Zealand cities, Fiji relies on travelers from more diverse cities, where America is one of Fiji's most prominent short-term rental guests.?

• Auckland - Auckland is also rapidly growing. Unlike Australia, New Zealand's short-term rentals rely more heavily on international travelers. This is the main reason why it starts receiving bookings late.?

• Sydney - Sydney's short-term rental market also shows an upward trend year over year base.

Cities with the lowest demand growth in August compared to last year's August?

Alpine Shire: -22%

Snowy River: -10%?

Canberra: The number of Airbnb listings in Canberra grew 70% over just one year, causing concerns from the ACT government. Because of rapid growth in short-term rental supplies, the median occupancy rate dropped by 4% in the Canberra region. A typical Airbnb listing in Canberra was 22.2 nights booked in August.

August Sees More Domestic Travel Activity Compared to July

Cities with the highest demand growth in August compared to July?

Sydney, Sunshine Coast, and Gold Coast experienced a 13-26% month-over-month (2023 July and 2023 August) increase in median occupancy rate.?

HereToStay on October 9th?

It is the first Australia's independent short-term rental accommodation conference led by ASTRA. It is happening in Sydney from October 9 to 10. It is an excellent opportunity to network with like-minded short-term rental industry people and learn more about industry trends.?

Are you a short-term rental manager??

The Airbtics team will also participate in the HereToStay; if you'd like to meet briefly, please drop us a line at [email protected].?

We are dedicated to writing the most insightful short-term rental market insights in the Oceanian region. We are just getting started, and we'd like to improve the quality of these reports. Please support us by subscribing to our newsletter and commenting with constructive feedback.?