Airbnb use has surged dramatically in ACT and in 2019 alone, more than 75,000 nights were booked for entire properties in Canberra via short-term rental platforms like Airbnb and HomeAway.
The city's short-term rental market as a whole features an incredibly high average occupancy rate due to consistent demand from the corporate, government and tertiary education sectors, making it an excellent investor hotspot for short-term rentals.
Looking for a more detailed breakdown of Canberra's short-term rental market in 2020? Click the link below to download a full PDF report:
In this article, we reveal the top six suburbs, in terms of occupancy rate and average nightly rates, for investors interested in short-term rentals.
The short-term rental market in the nation's capital has seen consistent growth with annual listing nights booked increasing 91% in the last three years. The success of Airbnbs in Canberra can partly be attributed to the city's unique positioning as a government, and education hub with two major universities, the Australian Defence Academy and the headquarters for many federal government departments.
The average occupancy rate for Airbnb in Canberra over the past 12 months was 80% and unlike other capitals such as Sydney, Melbourne and Brisbane, Canberra’s short-term rental occupancy is less affected by seasonal fluctuations due to lower reliance on peak and off-peak tourist demand.
Figure 1. Canberra short-term rental occupancy rate
From 2018 onwards, average daily rental rates for entire homes in Canberra ranged from $146 per night to as high as $171 in November 2019. The steady demand for accommodation is concentrated mostly around the Inner North area of Canberra’s CBD as well as areas surrounding the Manuka and Kingston foreshore area, which primarily consist of medium and high-density apartments.
Figure 2. Average nightly rate for short-term rentals in Canberra
Canberra City, commonly known as the Civic, is the heart of Canberra and home to the city's CBD. The suburb features some of the earliest establishments constructed in Canberra like Sydney and Melbourne buildings that flank Northbourne Avenue.
The occupancy rate in the area is particularly high due to year-round demand from business travellers as well as those attending major events like the Floriade, which drew almost half a million flower enthusiasts to the city last year.
Median Unit Price:
Occupancy Rate: 80%
Kingston is one of the oldest and densely populated suburbs in Canberra, but in recent years it has experienced mass redevelopments. The most notable development in the area, along the foreshores of Lake Burley Griffin, is the Kingston Foreshores, which offer a great selection of restaurants and bars.
The award-winning Old Bus Depot Markets is another major attraction in the suburb for Canberrans and tourists alike.
Median Unit Price:
Occupancy Rate: 84%
Ainslie is a nature lover's dream, characterised by leafy streets, numerous small parks and detached single dwelling houses that give visitors a village-like feel. Lucky visitors can come by kangaroos whilst exploring the nature trails of Mount Ainslie.
The Australian War Memorial is another notable landmark situated in Ainslie and it beat the Sydney Opera House as TripAdvisor's number one landmark in Australia.
Median House Price:
Average Unit Price:
Occupancy Rate: 77%
An inner north suburb of Canberra, Braddon contains the City Heritage Precinct. The suburb is a popular choice of stay for nearby ANU's staff, students and their families.
Braddon is a place you can easily get by on foot and the outstanding 90% occupancy rate make the suburb one of the top choices for property investment.
Median Unit Price:
Occupancy Rate: 90%
Turner is all about greenery, and as seen in the map below, parks make up a significant portion of the suburb. It is the perfect example of a garden city design with wide nature strips and generously proportioned roads.
In October last year the occupancy rate of Turner reached 96%.
Median Unit Price:
Occupancy Rate: 85%
Barton is a suburb adjacent to Capital Hill and it contains several Commonwealth government departments such as those of the Prime Minister and Cabinet, Attorney-General as well as Foreign Affairs and Trade.
It is a top investment area contender as it attracts a large number of government workers and corporate travellers attending major conferences like the Australian Cyber Security Centre Conference and Government Data Summit. Even though the suburb has a lower occupancy rate compared to the other suburbs on the list, it has the highest average nightly rate of $200.
Median Unit Price:
Occupancy Rate: 69%
The most popular areas for short-term rentals in Canberra are City, Kingston, Ainslie, Braddon, Turner and Barton, which are all located close to the city centre and are within walking distance to major tourist attractions, government departments as well as tertiary education providers.
The demand for short-term rentals in Canberra is projected to grow and Chief Minister Andrew Barr indicated that the government is supportive of Airbnb and that their "goal is to increase overnight visitor expenditure to $2.5 billion by December 2020".
