Compared to international tourism hot spots like Sydney or the Gold Coast, Canberra has often been overlooked by real estate investors looking for better returns by renting their property on Airbnb.
But data from the short-term rental listings on Airbnb revealed that the nation's capital was one of the best-performing markets in terms of demand and occupancy of housing, which led to the recent expansion of MadeComfy's Airbnb management services to the Canberra market at the start. of this year.
Unlike other large Airbnb markets affected by seasonality, Canberra experiences demand for accommodation almost year-round from business, government and business-related travel , as well as flexible student accommodation in higher education centers: the Australian National University, the University of Canberra and the Australian Defense Forces Academy.
Over the past 12 months, short-term rental occupancy rates have averaged 80% in the city, while average daily rental rates have ranged from $ 146 per night to $ 171 (see figure 1 below). The constant demand for housing is mainly concentrated around the northern interior area of ??the central business district of Canberra as well as the areas surrounding the area of ??the Manuka and Kingston foreshore, which mainly consist of apartments of medium and high density.
Some high demand suburbs facing a shortage of flexible accommodation options like Braddon, Turner, Belconnen and Bruce experience occupancy rates closer to 90%.
Figure 1: Average daily rates (ADR) of Canberra per month
The growing short-term rental market in Canberra
The short-term rental market in the nation's capital has grown steadily, with the number of registered overnight stays increasing by 91% in the past three years (see Figure 2 below).
Figure 2: Growing Canberra short-term rental market – monthly properties booked versus reserved nights
The rates for apartments and hotel services in the city remained high, leading to an increasing number of travelers looking for better value for money on alternative accommodation platforms such as that Airbnb.
The growth of Canberra's short-term market can also be seen alongside the growing preference for young professionals to stay in short-term, privately hosted rentals such as Airbnb properties, above hotels and serviced apartments.
Airbnb's job trends survey found that when it comes to traveling for work, more than 6 in 10 Australians (61%) would prefer to stay in an Airbnb with almost half (49%) saying they want the comforts of a real home when traveling on business.
According to the results of the survey, the ability to cook rather than eat outside (44%), being able to wash clothes (35%), having their own space and privacy ( 33%), having room to display documents and work files (32%) and having a separate space for receiving and meeting friends in different cities (22%) were the main drivers of workers who turned to the sharing economy for business travel.
Find out if your property can earn more with a short-term rental
MadeComfy is a leading short-term rental management company that helps real estate investors get higher returns on Airbnb and the short-term rental market.
Get a free assessment of instant returns from MadeComfy if you own an investment property in Sydney, Melbourne, Brisbane, the Gold Coast, the Sunshine Coast or Canberra.
Disclaimer: Although precautions are taken, the views expressed by contributors and / or the paid content do not necessarily reflect the views of your investment property.
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