A reflection of Australia’s surging travel recover in 2021, Sydney has seen tremendous growth in the average number of Airbnb bookings and rental revenue for property investors in the short-term rental market.
In this article, we break down the top 10 Sydney suburbs for short-term rental property investment for houses and apartments in 2021, based on number of booking volume and occupancy rate during the city's peak accommodation season.
Interested in researching Sydney's short-term rental and Airbnb for property investment in more detail? Get a FREE copy of our Sydney Short-Term Rental Report using the link below.
Based on data from MadeComfy’s portfolio of Greater Sydney short-term rental properties, average occupancy performance was mixed throughout much of 2020, due to COVID-19 restrictions and the impact of unexpected lockdowns such as in the Northern Beaches during December 2020 and January 2021.
When compared to available data published by STR.com on occupancy rates for Sydney hotels, we see demand for self-contained short-term rental accommodation performed much better, led by changing consumer’s preferences throughout COVID-19 shifting to greater space and privacy over hotel rooms. For example, during the peak of Australia’s lockdown restrictions in May, MadeComfy’s Sydney properties recorded an occupancy rate of 48%, compared to just 23% for Sydney hotels.
Despite a decline in bookings over December and January 2021 due to the Northern Beaches lockdown and border restrictions, occupancy returned to pre-pandemic levels at 70% in February once border restrictions had been lifted.
MadeComfy Sydney average occupancy rate trend VS Hotels
The popularity of Airbnb properties fluctuates with the change in seasons as visitors seek different experiences from their visit.
In the colder winter months, the suburbs with the highest occupancy rates are centralised around the CBD and inner west of Sydney, where there are trendy cafes and tourism hotspots such as the Harbour Bridge and Opera House, and as well as easy accessibility to the city.
On the other hand, during December, January and February when the warm summer weather attracts many visitors bounded for the Australian surf, an obvious shift in demand occurs as properties towards the coastal regions like Manly, Bondi and Coogee become more popular among families and tourists.
There are also slight differences in the popularity of housing depending on property type. In general, regardless of season, apartments have a comparatively higher rate of occupancy when compared to houses. In particular, residences with one or two bedrooms are most in demand.
Chippendale's short-term rental stock features a variety of converted warehouse apartments, terraces and studios.
The suburb's close proximity to Sydney CBD and its cutting edge creative scene make this suburb a hub for a diverse range of travelers and visitors.
Median Apartment Prices:
Occupancy Rate: 78% (Winter, 2021)
Despite recent developments in multi-level apartments and gentrification over the past few years, the remaining Victorian style terraces preserve Redfern's edgy and historic vibe. Students are often spotted visiting chic local cafes, and commuting to and from, the nearby University of Sydney.
Redfern station is only a stop away from Sydney’s largest train station, Central, and thus location is the key reason why this suburb is always popular among airbnb guests in Sydney.
Median Apartment Prices:
Occupancy Rate: 78% (Winter, 2021)
Areas in and around Haymarket are considered one of the busiest in Sydney. Haymarket is a place for social gathering and it is a leisurely stroll away from Darling Harbour, and it is home to Sydney's Chinatown, Capitol Theatre, and Paddy's Market. Located right next to Central station, the Haymarket area is popular for travelers looking to stay in next to Sydney's largest transpot hub.
Median Apartment Prices:
Occupancy Rate: 74% (Winter 2021)
Median Apartment Prices:
Occupancy Rate: 73% (Winter 2021)
Woolloomooloo is renowned for its Finger wharf where locals and tourists alike spend time at trendy bars overlooking the water view.
It is particularly suitable for a relaxed evening with friends or meeting new people.
Median Apartment Prices:
Occupancy rate: 72% (Winter, 2021)
With a world famous beach, Bondi is the top region in Sydney for Airbnb rental demand over the Summer in Sydney.
A variety of accommodation types, from small units to large properties used by groups and families, are popular over the summer period.
Average Occupancy Rate: 77% (Summer 2020/2021)
Accessed from the CBD by one of the most picturesque ferry rides in the world, Manly is a buzzing beachside hub of cafes, restaurants and street markets over the summer.
Occupancy Rate: 79% (Summer 2020/2021)
With some of the best views of Sydney, numerous properties in North Sydney are a walk away from the undisturbed views of Harbour Bridge and Opera house. Sydney's famous Luna Park is also located in North Sydney and is a popular attraction for many out of city visitors.
The ease of access to popular locations via train, bus or ferry makes it an even more sought after location for short term renters.
Median Apartment Prices:
Occupancy Rate: 77% (Summer 2020/2021)
In terms of house price growth, Australian real estate agent comparison site OpenAgent, are predicting a shift in Sydney's property market from 2020, partly due to the effect of loosening lending serviceability requirements, further downward interest rate pressure from the RBA and new comprehensive credit reporting schemes requiring banks to share credit report data.
Another beachside suburb, Coogee, is a popular location for families during the summer holiday seasons as Coogee beach is renowned for its safe swimming conditions. Furthermore, its close proximity to the Sydney CBD makes it a popular location for visitors who want to experience both the city and beachside lifestyle.
Median House Prices:
Occupation Rate: 74% (Summer 2020/2021)
Surry hills is an inner city suburb which features a mixtures of residential, commercial, and light industrial areas. It is a suburb of diversity, which has inspired a wide variety of local cafes and bars throughout the region.
Surry Hills is also the proud host of the monthly Surry Hills Markets and annual Surry Hills Festival, which attracts tens of thousands of visitors to the area.
Median House Prices:
Occupancy Rate: 80% (Summer 2020/2021)
