Did you know that when compared to other major capital cities across Australia, Brisbane's short-term rental market is least affected by seasonality?
In recent years, the growth in terms of supply and rental yields for Airbnb properties has made Brisbane a major hub for short-term rental (STR) property investors.
In this article, we share the latest market insights on the top-performing Brisbane suburbs of 2019 terms of occupancy rate data from Airbnb and rental revenue for both houses and apartments.
Looking for a more detailed breakdown of Brisbane's short-term rental market in 2019? Click the link below to receive our free updated report:
Receiving 1.4 million international visitors from July 2018 to July 2019, Brisbane is the third most visited city in Australia, just behind Melbourne and Sydney. The capital of Queensland has maintained its popularity and growth in the number of visitors, resulting in a consistent increase in demand for short-term rentals and vacation homes.
Brisbane's STR market in terms of the number of booked properties for entire homes increased by 36% in the first 8 months of 2019 when compared to the same period in 2018, with monthly revenue peaking in December.
From 2018 , average daily rental rates for entire homes in Brisbane ranged from $130 per night in February 2018 to as high as $157 in December 2018 and $153 in August 2019.
The supply of short-term rental properties in Brisbane is more spread out geographically when compared to other large cities like Melbourne. Suburbs in the Eastern parts of the city show the highest density of STR listings and regions further away from the city centre such as North Brisbane and the Redlands have lower STR demand and hence, lower supply of STR listings.
The impact on occupancy rates from seasonality in Brisbane is significantly lower than that of Sydney and Melbourne and this can be explained by the city's unique climate. STR high seasons in Brisbane are observed around December, January, and July during school holidays.
The most popular property size in Brisbane is two-bedroom homes, making up approximately 34% of STRs in the city. Occupancy rates and weekly revenue on average are higher for houses than units and this is partly since Brisbane’s nightly rate for houses is lower even near the metro areas when compared to cities like Melbourne and Sydney. Also, houses tend to have special features that raise rental prices such as outdoor areas, swimming pools and larger living areas suitable for renting to large groups.
We've listed the top Brisbane suburbs for short-term rental property investors below, comparing both houses and apartments
(*Note: All Median home prices are based on Domain.com.au and Realestate.com.au data; Average occupancy rate and median STR monthly revenue for 2019 are based on AirDNA data)
Stunning views of the Brisbane River and proximity to the CBD have drawn residents to this charming suburb filled with historical streets, secret laneways and grand 19th-century villas.
Highgate Hill is an increasingly diverse and multicultural suburb as 41% of people living in the area were born overseas when compared to the national average of 30%.
Median house price:
Occupancy rate: 71%
Entire one-bedroom homes are the most popular form of STR in Red Hill. As one of the oldest suburbs in Brisbane, Red Hill boasts numerous heritage-listed buildings such as St. Brigid's Roman Cathedral.
If you are a rugby fan then Red Hill's Gilbert Park is the place to be as Brisbane's very own NRL team, the Brisbane Broncos call this suburb their home.
Median house price:
Occupancy rate: 73%
Everyday Morningsiders can be seen enjoying the lush green fields of Colmslie Recreation Reserve followed by a delicious cup of coffee at one of the many charming cafes offered by this inner-city gem.
Big commercial and shopping centres such as Morningside Central and Morningside Plaza are just minutes away to fulfil any shopper's dream.
Median house price:
Occupancy rate: 79%
Traditional cottages with hillside views and houses with large verandahs give this affluent suburb its iconic heritage appeal. Venues like the Suncorp Stadium, known for hosting popular sports matches and live music concerts add on to the ever-increasing appeal of this residential community.
Median house price:
Occupancy rate: 75%
The predominant housing in East Brisbane are 2-bedroom Queenslander homes. In the weekend, locals can be seen treating themselves to scrumptious BBQs with a riverside view at Mowbray Park.
The top guests staying in East Brisbane Airbnbs are from Melbourne. Interstate travellers are drawn to this area due to its peaceful residential vibe complimented by hidden parks and creeks, as well as its excellent public transport links: bus stops and train stations such as Coorparoo Railway Station are a walk away.
Median house price:
Occupancy rate: 76%
West End's urban renewal means the suburb has a myriad of new apartment blocks on the market. You can attend gigs by local and international artists seven days a week and relish in the best coffee, brunch, book and record stores that Brisbane has to offer.
Some of the biggest fresh farmers’ markets and cultural festivals in Australia are held in this catchy suburb so there is never a boring day in West End.
Median unit price:
Occupancy rate: 77%
With the backdrop of the Wheel of Brisbane, South Brisbane is a tourist hot spot that is connected to the CBD by three prominent bridges. This suburb has something to suit all ages as it encompasses a plethora of entertainment precincts, museums, and art galleries.
Its perfect location is the reason why the average monthly STR revenue of South Brisbane is the highest on this list. The occupancy rate in July this year reached an incredible 90%.
Median unit price:
Occupancy rate: 71%
Milton is a small suburb with a big personality. The area is enriched by a diverse mixture of warehouses, retail shops, commercial offices, and multiple occupancy residences along with stylish cafes and gourmet restaurants down the Park Road strip.
One of the most notable landmarks in Milton is the Castlemaine Perkins brewery, known for its range of beers and little features like these are what distinguishes Milton from the rest.
Median unit price:
Occupancy rate: 74%
The tree-lined boulevards, retro pads, spacious heritage Queenslanders, and slick new apartments all tell a story of New Farm's history.
Living in the area means you don't have to own a vehicle as schools, buses, City Cat ferries, and hip shopping precincts are all just a step away.
Median unit price:
Occupancy rate: 71%
A haven for foodies and outdoor enthusiasts, no other suburb can match the creative vibe and beautiful sceneries of Kangaroo Point.
The largely Queenslander type houses and small blocks of Art-Deco flats are complemented by the newly built developments across the iconic Story Bridge.
Median unit price:
Occupancy rate: 74%
To sum up, Highgate Hill, Red Hill, Morningside, Paddington, and East Brisbane are excellent suburbs to invest in houses, while West End, South Brisbane, Milton, New Farm, and Kangaroo Point are suburbs to consider for apartments.
The majority of these suburbs have relatively constant occupancy rates all year long, not just solely due to Brisbane's pleasant weather, but also because of their proximity and location near the CBD. The top interstate guests staying at Brisbane STRs are from Sydney and Melbourne whilst the top international guests are mainly from Singapore, Hong Kong, and London.
