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Australia's vacation rental scene is booming, and there are no signs of this stopping anytime soon. From major cities to beachside havens, we have discussed the best short-term rental markets in 2025 and explained what makes them tick. This guide explores everything from rental demand and short-term rental trends to seasonal spikes and local rules.
At Beyond, we rely on data to drive our decisions. Our team taps into real-time global short-term rental data to unlock powerful insights that fuel smarter decisions and drive performance. We do not rely on hunches - we let the numbers guide us. In this blog post, we will use our extensive database full of holiday let market data and insights to identify the top holiday rental markets in Australia. By crunching the latest stats, we have highlighted where Aussie short-term rental owners are seeing the biggest returns.
Best Short-term rental markets in Australia in 2025
In the sections below, we break down six of the top holiday rental markets in Australia for 2025, using Beyond's real-time data and industry insights.
Perth
- Occupancy: 76%
- Average daily rate: $236
- RevPAN: $181
- Most suitable for: business travellers, long-haul international visitors (typically from Asia).
Perth often feels like Australia's frontier city, isolated geographically but rich in opportunity. Often part of a longer Australia trip of visitors, this place also draws FIFO workers, nature seekers, and people headed to Rottnest Island, Margaret River, or WA mining regions.
For short-term rental owners, Perth is a key performer with a 76% occupancy rate (the highest on this list). There are a few reasons behind Perth's stellar occupancy. First, the city has a bit less supply relative to demand than the East Coast giants, with around 6,000 active listings as of late 2024.
Perth's ADR, at $236, is lower than Sydney's or Brisbane's, which means it is a more budget-friendly destination. However, combined with the extremely high occupancy, the RevPAN totals $181. Another attractive aspect of Perth's market is the lenient regulatory environment.
Adelaide
- Occupancy: 75%
- Average daily rate: $231
- RevPAN: $179
- Most suitable for: Wine tourists or couple travelers.
Adelaide's occupancy is an impressive 75%, nearly matching Perth's for the top spot. And thanks to that high occupancy, the typical Adelaide short-term rental’s RevPAN is $179, on par with Sydney's. Adelaide is an ideal base for wine tours, cultural festivals & romantic getaways. Couples seeking a more relaxed, budget-friendly, yet refined experience often prefer this city.
Sydney
- Occupancy: 68%
- Average Daily Rate: $255
- RevPAN: $179
- Most suitable for: international tourists and cultural lovers
In 2024, Sydney led all Aussie capitals, drawing over 3 million international visitors and about 33.7 million domestic travellers. At an average occupancy of 68%, the rental demand is commendable.
Sydney's ADR of $255 is on the higher side, reflecting the premium travellers are willing to pay to stay in the city. World-famous attractions like the Sydney Opera House and events such as Mardi Gras and Vivid Sydney Festival draw huge crowds. During such periods, nightly rates and occupancy can go quite high. This combination of high occupancy and strong pricing power gives Sydney a healthy RevPAN of $179.
Melbourne
- Occupancy: 66%
- Average daily rate: $219
- RevPAN: $149
- Most suitable for: travellers on business trips or long-term academic stays.
As the nation's cultural capital, Melbourne attracts steady visitor numbers each year, around 10.4 million travellers (domestic overnight visitors) in the year up to December 2024.
An ADR of $219 and an occupancy rate of 66% reflect Melbourne's balanced approach to pricing. Notably, rates fluctuate with the city's event calendar. During the 2024 Grand Prix, for instance, some hosts saw 98% occupancy and ADRs 148% above the norm.
Melbourne's RevPAN comes in around $149 in our data, which indicates that despite slightly lower occupancy than Sydney, the city still delivers strong revenue per available night.
Brisbane
- Occupancy: 60%
- Average daily rate: $311
- RevPAN: $193
- Most suitable for: event-based stays, weekend escapes.
Brisbane often flies under the radar compared to Sydney and Melbourne, but Queensland's capital is a short-term rental hotspot. With Occ at 60% and an ADR of $311, Brisbane's short-term rentals are pulling in nearly the same RevPAN as the Gold Coast ($193 vs $195).
This city hosts big events like the Riverfire Festival and will host the 2032 Olympics. During such events, occupancy can go up. One thing to watch is local regulation. Brisbane City Council has already levied higher rates (property taxes) on short-term rentals & is introducing a permit system for short-term rental owners.
Brisbane has a warm climate and strong calendar of events, which makes it ideal for short business trips, event-based stays & weekend escapes.
Gold Coast
- Occupancy: 52%
- Average daily rate:$362
- RevPAN: $195
- Most suitable for: beachside holidays and families looking for high-end touch of vacations.
This sun-soaked city is famed for its surfing beaches and themed parks. For short-term rental owners, it is a market of high highs and low lows, which you can already guess from the numbers. An occupancy of 52% might seem modest, but consider that the Gold Coast's ADR is $362 – the highest of any market on our list.
This means that when bookings happen, they happen at premium prices (often for large homes or high-end apartments along the beachfront). This yields a RevPAN of $195, the highest of all six cities, even beating out Sydney's.
How do you determine if a short-term rental market is profitable?
To determine if a market is truly profitable before staring your Airbnb business, you need to consider the income potential and several key factors that influence your revenue and costs. Here are the big ones we often prioritise:
Rental demand & occupancy
A place with year-round tourists or business travellers will keep your calendar booked (and cash flowing). Always look for an area with an average of 70%+ occupancy rate.
Seasonal trends
Strong peak seasons can supercharge earnings, but you will want to plan for slower off-season months too. Most hosts usually adjust pricing for holidays & local events to maximise their short-term rental income potential. If you want a steadier income, choose a market with consistent demand year-round.
Average Daily Rate (ADR)
This is what you charge on average per night. Higher ADRs mean more income per booking. However, you should be careful since a price too high will scare off guests.
RevPAN (Revenue per Available Night)
As the name suggests, this metric combines occupancy & ADR to measure overall earning efficiency. If you have sky-high ADR but low occupancy, or vice versa, your RevPAN will reveal that imbalance.
Regulations & legislation
Some cities impose caps on how many nights you can rent (for example, a 180-night cap on unhosted rentals in Sydney or special taxes/levies (Victoria is introducing a 7.5% short-stay levy). Favourable rules mean you can rent freely, while strict regulations will limit your earning days or add extra costs.
Supply & competition
The number of active listings often indicates the status of the short-term rental. High competition often reduces occupancy or force price drops.
Quality of Listings
If the top listings are professionally managed and heavily reviewed, it indicates that the market is mature and that it attracts serious and top-of-the-class guests. This is often a good sign.
Pros and cons of investing in top markets
Every top market has its advantages and challenges. Here is a quick comparison of the pros and cons of investing in Australia's top short-term rental locations:
Ready to unlock the full potential of your holiday rental property?
Investing in one of Australia's top markets can be quite promising, and we are here to ensure you make the most of it. At Beyond, we think in terms of data and strategy, and we have built tools to help you maximise your short-term rental income potential no matter the location. If you are curious about how much more you could be earning or which market is a fit for your goals, we have got something for you.
With a few clicks, we will show you personalised insights for your listing, from expected ADR and occupancy to seasonal trends and revenue forecasts. Check out our free analysis tool to see how your property stacks up in any city.
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