The Best Cities for Airbnb in Australia

Australia is a country of untouched natural beauty, urbanized cities, a multicultural community, and developed industries. Despite its geographic location, Australia is super popular with tourists, with millions of people from all over the world coming here yearly. That is why starting your lucrative Airbnb business here is a great idea.

Best Airbnb Investment Locations in Australia

One of the factors influencing the success of your short-term rental business is choosing the right location. We have prepared a list of the best places to invest in an Airbnb business in Australia. Each has its features and benefits that you can consider in your strategy.


Busselton is a city that has become a favorite vacation spot for thousands of families. There are picturesque beaches, places for fishing, and natural and cultural attractions.

Ancient wooden buildings coexist with modern buildings, and travelers can enjoy fried fish and seafood dishes in restaurants and buy souvenirs in markets on the shore.

Short-term property rental prices in Busselton are high enough that your Airbnb property investment will pay off quickly.

Average Daily Rate (ADR): $272
Occupancy Rate (OR): 70%
Revenue: $ 4,274
Active Rentals: 1,647

In 95% of cases, houses with 3 or 4 bedrooms are rented out. Most houses have parking, air conditioning, internet, and heating. But the pool is only 14% of real estate.


This town on the west coast of Australia was known in the 19th century for its pearl mining. Today, the city is known as a small resort with pristine beaches and a mild climate. There are few real estate objects here so that you can draw a lucky ticket.

ADR: $290
OR: 75%
Revenue: $3,952
Active Rentals: 135

There are few vacation rental properties in Broome, but they all offer perfect conditions for guests. Here, 1, 2, and 3-bedroom houses are equally popular, with 64% of properties having a pool. But hot tubes are rare. They are only in 4% of houses.

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This second largest city after Sydney is Australia’s industrial, economic and cultural center. Universities, major business centers, parks, and stadiums are located here. Tourists, students, fans of sports games, and other travelers come here. Short-term rentals are booming here. So making a real estate purchase here is highly likely to bring you success.

ADR: $190
OR: 67%
Revenue: $2,506
Active Rentals: 17,779

Despite the large number of properties in Melbourne, most are detached houses with 1 and 2 bedrooms, not apartments. Basic requirements: Internet access, parking, and air conditioning. But only 19% of the Hosts have a pool. You can make having a pool an advantage.

Read more about Airbnb тanagement services in Melbourne.


It is the largest, oldest, and most famous city in Australia. It is home to the famous shell-shaped Opera House, Harbor Bridge, Woolloomooloo Bay Pier, Taronga Zoo, and many other world-famous attractions. The flow of tourists to Sydney is growing every year, and vacation rentals are top-rated. People stay both in expensive hotels and in small cozy apartments.

ADR: $190
OR: 75%
Revenue: $ 2,508
Active Rentals: 11,565

A large number of objects creates a fairly high level of competition, but you can get a stable income due to the high occupancy. In Sydney, 78% of properties are houses, 21% are apartments, and 1% are rooms. Swimming pools are only in 18% of houses.

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Dungog is a small town in New South Wales. It is known for its picturesque nature and is an excellent place for a quiet family vacation away from the bustle of the city. If you were just thinking about buying an eco-home, there is no better place than this.

ADR: $249
OR: 58%
Revenue: $3,722
Active Rentals:146

In Dungog, you will have a small number of competitors, and a high price will allow you to make good money. However, you must provide guests with a lovely accommodation experience. Most real estate here is luxury houses with 2-3 bedrooms, a pool, and a hot tub.


Orange is one of the most famous centers for gastronomic tourists. There are luxurious vineyards here, and you can taste fine wine and other local products in restaurants. In addition, the town is very picturesque at any time of the year. In winter, there is a lot of snow here, and Orange looks fabulous.

ADR: $183
OR: 68%
Revenue: $3,194
Active Rentals: 353

In this small picturesque town, houses with 2-3 bedrooms with parking, kitchen, air conditioning, and internet are in great demand. Most tourists come here in April, but in November, there is a decline in demand.


Port Douglas is located on the coast of the Coral Sea and is an ideal place for a beach holiday. The monsoon climate, clean coastline, palm trees, and mountains are real magnets for tourists. Therefore, owning real estate here means guaranteed to have a profit. You will have guests because the holiday season here lasts all year round.

ADR: $251
OR: 74%
Revenue: $3,564
Active Rentals: 963

To compete successfully with other Airbnb hosts in Douglas, you’d better buy a 2-3 bedroom house with a pool, parking, and air conditioning. People come here to have a good rest with family or friends, and in August, the occupancy reaches 100%, so that you will get a good income during the peak months.

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This resort in Western Australia is known for its white-sand beaches and Pink Lake, where the water has a deep pink hue. Previously, scientists believed that the reason for this was in red algae, but recently experts have concluded that this is not so. Esperance is a corner of untouched nature and heavenly landscapes. There is even a local Stonehenge located on the way to Cape Le Grand National Park.

ADR: $175
OR: 80%
Revenue: 3000
Active Rentals: 145

Esperance is a popular family holiday destination, so most houses (39%) here have 3 bedrooms, and 24% have 2 bedrooms. Demand for short-term rentals is highest in January when occupancy reaches 94%.


Australia is a country where many picturesque corners attract tourists and travelers. And the real estate market here is booming. Choose the right location, analyze your competitors and target audience, and build your profitable business.

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