Sunshine Coast Rental Market

Are you looking to buy a beach property in the Sunshine Coast to start an Airbnb but are unsure whether investing in short-term rental will be profitable in this area? In this blog post, we'll share insights into the Sunshine Coast short-term rental market to help you make an informed decision.

Why Sunshine Coast?

The Sunshine Coast is one of Australia's most popular holiday destinations, known for its pristine coastline, lush hinterlands, charming historic villages, and excellent lifestyle. It also attracts different types of travelers from across the globe, including beachgoers, adventure seekers, and families with kids.  

With its warm, subtropical climate, the Sunshine Coast has a year-round appeal for those who desire a peaceful escape from the hustle and bustle. However, there is a clear peak in demand during the summer holidays. For example, in December and January, there is a spike in occupancy and average nightly rates, which can be 2 times higher than the average for the rest of the year.

No wonder the Sunshine Coast is one of Australia's top places to invest in short-term rentals. Noosa, Mooloolaba, Caloundra, Coolum Beach, and Maroochydore are some of the best areas on the Sunshine Coast for Airbnb. They are all located along the coastline within walking distance of popular tourist attractions and white sand beaches.

You'll increase your chances of succeeding as an Airbnb host if you find an investment property with a high earning potential and set the right pricing strategy based on real-time market data. Although running an Airbnb requires commitment and a lot of work, you can automate 90% of your repetitive tasks using vacation rental software like Hospitable and manage everything hassle-free.

Sunshine Coast Rental Market: Key Stats and Facts about Vacation Rentals

According to data from Queensland University and SQM Research, in June 2024, the Sunshine Coast region had 13,000 short-term lets, and about 11,500 of them were entire homes, which is about 90%.   

According to Airbnb, as of September 2024, 7.1K properties in the Sunshine Coast are listed on the platform, including 5.4K family-friendly rentals and 2.5K properties with dedicated workspaces.

Stats from Key Data reveal that individual hosts and small hosts dominate the Sunshine Coast Airbnb rental market. Hosts with 5 or fewer properties manage 63% of Airbnb listings, 12% of units are managed by hosts with 6-20 properties, and 25% of listings are managed by hosts who manage more than 20 properties.

The average daily rate (ADR) for Airbnb properties in the Sunshine Coast in 2023 (Jan 1 - Aug 18) was $219, which is 17% lower than it was in 2022 ($228). But in 2024 (Jan 1 – Aug 18), the ADR was $233, 18% higher than in 2023. Still, compared to 2022 (Jan 1 - Aug 18), we see an increase in 2024 average daily rates.

The years 2023 and 2024 also presented some challenges regarding occupancy rates. In 2023 (Jan 1 - Aug 18), the paid occupancy rate in the Sunshine Coast was 31%, showing a 4% decrease compared to paid occupancy rates in 2022 (36%). In 2024, the paid occupancy rate was 29% lower than in 2023.

These data show that Airbnb rental numbers in the Sunshine Coast market haven't returned to pre-pandemic levels. Still, investing in STR properties on the Sunshine Coast offers significant potential benefits as tourism rebounds and the demand for short-term rentals is projected to grow.

The numbers revealed by Tourism Research Australia in their National Visitor Surveys are encouraging. 4.2 million domestic travelers visited the Sunshine Coast in 2023, including a record 2.5 million holiday visitors, up 1.7% compared to the year before.