Thinking about buying an investment property in Brisbane to turn it into an Airbnb but aren’t sure whether it’s worth it? To help you get a better idea of what you can expect and make an informed decision, in this article, we’ll share some insights into the Brisbane short-term rental market that offers enticing opportunities for investors.
Brisbane Vacation Rental Market: Key Stats and Facts
Brisbane is the capital city of Queensland, known for its vibrant culture and bustling city life. The city enjoys a subtropical climate with warm to hot temperatures all year round and boasts many cultural and sports events and attractions. Favorable weather conditions and numerous exciting entertainment options make Brisbane a popular destination for travelers from around the globe.
2023 Brisbane welcomed 1.2 million international travelers, while domestic visitors accounted for 7.23 million. The upcoming Brisbane 2032 Summer Olympics are predicted to further boost Brisbane’s tourism industry and significantly impact the short-term rental market.
Brisbane is also known as one of the top locations in Australia for Airbnb investment, offering good opportunities for property owners as the demand for unique and immersive travel experiences continues to rise.
While CoreLogic house price data shows that Brisbane’s median house value is currently $937,479, which is higher than in Melbourne, you can still expect to succeed in your Airbnb business in Brisbane. But it’s crucial to choose the right property with a high earning potential and manage it effectively.
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Currently, there are around 8,800 vacation rental properties in Brisbane listed on Airbnb, including over 3,220 house rentals and over 3,700 apartment rentals, catering to travelers’ varied tastes and budgets.
According to Key Data, the Brisbane Airbnb rental market is dominated by individual hosts and small hosts. The majority of Airbnb hosts in Brisbane (97 %) manage 1-5 listings, 3 % of hosts list 6-20 properties, and only 1 % of hosts have 20+ listings. This represents diverse opportunities for Airbnb property managers looking to grow their businesses.
The average daily rate (ADR) for Airbnb properties in Brisbane in 2024 (Jan 1-Aug 18) was $145, which is 5% higher than it was in 2023 ($138). Compared to 2022 (Jan 1-Aug 18), when the ADR was $118, we see a significant increase.
However, the year 2024 has presented some challenges regarding occupancy rates. In 2024 (Jan 1-Aug 18), the paid occupancy rate in Brisbane was 35%, showing a 2% de-growth compared to paid occupancy rates in 2022 and 2023 (37%). That means Brisbane is still struggling to reach the occupancy levels of the pre-pandemic years.
Brisbane Rental Crisis
Like everywhere else in Australia, Brisbane’s rental market is in crisis. While some states show slight signs of easing rental pressures, Queensland remains stuck with significant challenges.
Due to a surge in international and interstate migration, the demand for rental properties in Queensland’s capital city is exceptionally high, and vacancy rates remain low—1.1% in August 2024 (Source: SQM Research)—propelling rental prices upward.
Since new home building levels in Brisbane remain chronically recessed, the supply is insufficient to meet the demand. As a result, more people are competing for a limited number of rental properties, and the competition is fierce, so renters are increasingly struggling to find affordable housing.
Brisbane rent prices have risen 9.3% over the past year. Specific data from SQM Research as of September 2024 reveal that 3-bedroom houses in Brisbane are averaging rents of around $649 per week, while all units are at approximately $572. 2-bedroom units, a common choice among professionals and small families, average weekly rents around $563.
The rental crisis in Brisbane and across Australia is a complex issue with various factors contributing to the rental shortage. To address the housing crisis, many state and local governments in Australia have announced new Airbnb rules to limit the availability of some properties for short-term holiday rentals.
Although less than 1% of properties in Brisbane are currently being used as short-term accommodation, Brisbane City Council has announced that it is set to introduce the permit system for property owners turning their homes into Airbnbs. This measure is expected to reduce the impact of short-term rentals on housing supply.
Property owners in Brisbane will soon need a council-approved permit before renting their house on Airbnb and similar sites as the city attempts to increase its rental supply. To meet the requirements for this permit, property owners will need appropriate planning approvals, body corporate support, and a 24/7 property manager for short-term rentals. Short-stay owners will also need to pay an annual fee.
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