Australia is a marvelous place that perfectly marries the city and beach life. People from all over the world are going to Australia to see and experience it for themselves. They want to feel the heat of the sun as they walk along a majestic beach shore or maybe take a photo in front of the world-renowned Sydney Opera House. It is no wonder why tourism is a lucrative industry in this country continent.
In fact, the tourism sector in Australia contributed $60.8 billion to its economy in 2019, which is 3.1 percent of the national gross domestic product. Majority or 74 percent of this figure came from local activities while the remaining 26 percent were accounted for by international visitors to Australia.
With this, many people are taking advantage of the surge in foreign tourists, and even business travelers who seek short-term rental places. If you start a business in real estate, you can convert it into a tourism rental property. You can truly benefit from this venture especially during peak season when tourists have the time to take a trip.
But before you have a deep dive into this venture, it is only wise for you to know about the tourism rental property trends in key Australian cities. We worked with a business sales portal, which helps you to buy business in Australia to compile this article.
Sydney
One of the biggest cities in Australia, Sydney is also the most popular location for short-term tourism rental property, data from Australia’s Short-Term Rental Report 2019 showed. There are areas in the city, however, where the number of available tourism rental property is not enough to meet the demand. With this, property owners are given the opportunity to maximize their rental income.
In August 2019, data shows that tourism rental property reservations in Sydney were between 150,000 and 200,000 with net market revenue sitting between $50 million and $60 million.
The top short-term rental property destination for tourists in Sydney include the following suburbs:
- Surry Hills
- Newtown
- Fairlight
- Coogee
- Randwick
- Redfern
- Paddington
- Waterloo
- Bondi Beach
- Haymarket
These places are usually packed with tourists during peak season, with occupancy rate at a high level. For example, Randwick is one of the recent tourism hotspots because it is both near to the beach and to the city.
Melbourne
Short-term rentals make up 16 percent of all bookings—out of all accommodation booking types—in the state of Victoria, where Melbourne is located. Take note that this figure is the highest in Australia.
This shows that Melbourne’s tourism rental property market can play the game well. It can find the right property, market the real estate, and manage it well. The short-term rental property market, in fact, has been having robust income growth.
High-end tourism rental property with added amenities like pool, lounge, and gym have become the trend in Melbourne. The demand for such rental units has increased through the years.
The top Melbourne spots for tourism rental property include the following:
- Brunswick
- Fitzroy
- Northcote
- Brighton
- Richmond
- Toorak
- Abbotsford
- Albert Park
- Collingwood
- St. Kilda
Brisbane
It is undeniable that Sydney and Melbourne have cornered the tourism rental property in Australia. However, Brisbane has an edge that keeps tourists coming back. It has a good, warm climate that allows visitors all-year round. Especially during winter and spring, tourists flock in Brisbane in search for warmer destinations.
Apart from its warm climate, Brisbane enjoys steady tourism business from business travelers given that it is Queensland’s business hub. The top locations for tourism rental property in Brisbane are Highgate Hill, Red Hill, Morningside, Paddington, and Kangaroo Point, among others.
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