Some short-term rentals (STRs) in Australia cost more, but travellers still book them. For example, Hunter Valley and Byron Bay rates regularly top AU$500 per night. These listings often offer amenities, scenery, and seclusion that's hard to find elsewhere.
With limited availability and rising visitor interest, prices keep climbing. This guide unpacks the reasons behind the high STR pricing in some Australian markets.
Key locations with data overview
Certain regional markets earn more simply because of their location and what they offer nearby. Properties near wine regions, beaches, or within easy reach of major cities tend to attract more bookings. These listings often enjoy stronger occupancy rates, since guests actively seek out places with those perks.
Homes in high-demand areas also tend to be more expensive, not just to own but to book. That pricing edge holds up year-round in many cases, especially when paired with limited supply or seasonal drawcards.
What’s playing out in key STR markets reflects bigger tourism trends across Australia. Travellers are no longer looking for just a place to sleep. Instead, they want something that feels special or fits a particular kind of getaway.
The figures below highlight how income from high-rate listings in popular destinations continues to outperform the national average.
What makes luxury STRs in Byron Bay and Hunter Valley more expensive?
Guests who book in Byron Bay or the Hunter Valley pay for a premium experience. They expect ambient space, privacy, and an exclusive setting.
About Hunter Valley
The Hunter Valley is one of New South Wales' most reliable luxury vacation rental markets. Its proximity to Sydney makes it an easy weekend escape for urban travellers. As a result, booked rates now average AU$481 per night, significantly higher than the national average of AU$230 to AU$280.
Much of this performance is due to the high demand for wine tourism. The region has over 120 vineyards and over 150 cellar doors. Many visitors seeking boutique stays, vineyard views, and a slower pace of life travel here.
The limited accommodation options also mean each listing carries weight. This combination of access, scarcity, and consistent interest allows hosts to increase nightly rates comfortably.
About Byron Bay
Byron Bay's short-term rental market has shifted dramatically. Recent data shows that up to 35% of the shire's housing stock is now listed on STR platforms. This high volume of short-term rental activity has reduced the pool of long-term housing. As a result, accommodation has become more exclusive and costly.
The majority of Byron's vacation homes are designed for groups or families. Approximately 86.6% of listings cater to two or more guests. This favours travelling groups, especially during popular events such as the Byron Bay Triathlon and the International Film Festival.
Today, the area's short-stay market leans heavily toward upscale listings. Most properties command premium pricing, especially during peak travel dates.
Why are guests willing to pay higher rates?
For many travellers, price is only one part of the equation. What they want the most is to slow down, disconnect, and stay somewhere that feels personal. In a global survey, 62% said they want to do less while on holiday. A bolder 24% said they often need a JOMO (joy of missing out) break.
Such guests see real benefits in spending more for a property that feels like a private vacation home. They want a property that helps them to switch off, even if that means paying a slightly expensive rate. This shift in guest preferences has helped drive STR pricing in Australia, with the market growing 13.1% in the last decade.
How to unlock the value of luxury STRs with Beyond
Many luxury listings underperform, and the issue often comes down to pricing that doesn't reflect market dynamics. That's where Beyond can help.
Our platform offers a reliable pricing tool designed for STR operators. The dynamic pricing engine tracks changes in local demand, seasonality, and booking pace. It automatically adjusts your nightly rates, helping you stay competitive in fast-moving markets.
With this tool and the insights you get, you can build better pricing strategies to stay ahead of competition. You'll enjoy more visibility, stronger bookings, and optimised returns, especially in high-value destinations. Check out our free STR data tool today and get instant feedback tailored to your market.
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