The Airbnb business has become increasingly lucrative in Australia, thanks to the booming tourism and rising demand for alternative accommodations. In this guide, we have rounded up the best Airbnb markets for 2025, from which you can choose the best locations to maximise your returns.
The markets we have listed below offer promising opportunities as long as you carefully analyse key indicators such as occupancy rates, revenue metrics, and local regulations. Stay with us to discover why these regions stand out and how you can make the most of it as an Airbnb investor.
Factors That Make the Airbnb Market Profitable
Before you think of setting up an Airbnb business in a given market, it is important first to understand the factors that contribute to its success.
If you prefer a market with high short-term rental demand, you will gravitate more towards cities with high tourism activities. Likewise, you want to go for markets with supportive Airbnb policies. Here is what you should consider as you evaluate the revenue potential:
- Average Daily Rate (ADR): This reflects the average income generated per occupied night. Higher ADR markets often offer better profitability.
- Revenue per Available Room (RevPAR): This measure combines ADR and occupancy rate. It gives a more detailed view of a property’s earning potential.
Australia’s Top 10 Best Airbnb Markets for 2025
Here are the 10 best Airbnb markets in Australia that attract investors from Australia and beyond. We have highlighted what makes these cities or neighbourhoods unique and why you should consider them.
Sydney
Sydney’s popular attractions, such as the Sydney Opera House and Bondi Beach, make it a top pick among tourists. The city has a high occupancy rate and attractive RevPAR. Compared to most cities, Sydney welcomes a broad range of visitors, from international tourists to business travellers, which guarantees year-round demand.
- Average home value: $1.5M
- Occupancy rate: 82%
- Revenue Per Available Room (RevPAR): $207
Check out our Airbnb property management service in Sydney.
Melbourne
Known for its cultural scene and vibrant neighbourhoods, Melbourne ranks high among Airbnb investors. The city has a rich calendar of events, which includes sports tournaments and festivals, most of which drive consistent occupancy. Melbourne has relatively affordable property prices compared to Sydney, so it presents a good investment opportunity to many.
- Average home value: $926K
- Occupancy rate: 78%
- Revenue Per Available Room (RevPAR): $151
Gold Coast
The Gold Coast is home to beautiful beaches and has grown over the years thanks to its thriving nightlife, which attracts millions of visitors annually. Popular suburbs such as Surfers Paradise and Broadbeach offer lucrative opportunities for Airbnb investors. High occupancy rates and competitive RevPAR also make this region a standout.
- Average home value: $926K
- Occupancy rate: 81%
- Revenue Per Available Room (RevPAR): $189
Brisbane
Most Airbnb investors love Brisbane because of its growth potential. It is the third-largest city and is also located in a strategic region. This city has a strong rental demand, and its suburban areas like Kelvin Grove and Spring Hill are promising.
- Average home value: $974K
- Occupancy rate: 79%
- Revenue Per Available Room (RevPAR): $168
Perth
Perth’s unique appeal lies in its isolation and natural beauty. Most investors are drawn to the city’s growing economy and steady tourism influx. Airbnb properties in Perth often cater to eco-tourists and business travellers, hence the consistent demand for short-term rentals.
- Average home value: $831K
- Occupancy rate: 75%
- Revenue Per Available Room (RevPAR): $169
Adelaide
While Adelaide may not be the hottest market in South Australia, it is one that most investors have their eyes on. It is close to a popular wine region, which makes it popular among tourists.
- Avera e home value: $857K
- Occupancy rate: 72%
- Revenue Per Available Room (RevPAR): $148
Byron Bay
Famed for its calm atmosphere and pristine beaches, Byron Bay boasts a unique Airbnb market. Its small-town charm, plus the high occupancy rates, ensures excellent returns. Properties here are particularly attractive to luxury travellers and eco-tourists.
- Average home value: $1.1M
- Occupancy rate: 85%
- Revenue Per Available Room (RevPAR): $182
Hobart
Tasmania’s capital, Hobart, is a rising star in the Airbnb market. The city has beautiful natural scenery and a vibrant food culture, which attract local and international tourists all year round. Another highlight is the affordable home values that attract investors looking for a growing market.
- Average home value: $693K
- Occupancy rate: 76%
- Revenue Per Available Room (RevPAR): $166
Cairns
Cairns is located in the tropical north of Queensland and is home to the Great Barrier Reef. This makes it a magnet for eco-tourists. Its affordability and steady occupancy rates make it a great choice for first-time Airbnb investors.
- Average home value: $566K
- Occupancy rate: 74%
- Revenue Per Available Room (RevPAR): $144
Canberra
This is the capital city of Australia and an important hub for governance and cultural tourism. With its growing population and strong rental demand, the city is becoming attractive to investors. Suburbs like Kingston and Belconnen are among the many worth exploring.
- Average home value: $967K
- Occupancy rate: 77%
- Revenue Per Available Room (RevPAR): $137
Hosting in Sydney? Let L’Abode Accommodation Help
Successful Airbnb hosting requires careful planning and execution. If you are a property owner managing multiple listings, professional services like L’Abode Accommodation can make a difference. Here is how we can chip in to help maximise your Airbnb success:
- Focus on high-demand niches: We will design your Airbnb property to meet the unique needs of specific demographics such as families and eco-tourists.
- Optimise listings: Our professional photographers and marketers will work around the clock to ensure your property appeals to all guests.
- Invest in amenities that matter: Essentials like WiFi, self-check-ins, and personalised touches can significantly improve guest satisfaction. We will work with you to ensure these amenities are functional and efficient.
- Prioritise guest experience: To wow your Airbnb customers and ensure exceptional service, we prepare welcome baskets with local goods or provide travel tips for an excellent stay.
Stress-Free Airbnb Hosting in Sydney with L’Abode Accommodation
If you already run an Airbnb business, you know how managing the property can turn into a full-time job. Thankfully, L’Abode Accommodation offers stress-free, full-circle property management. Contact us today to explore our services and learn how we can streamline your Airbnb hosting experience.