Canberra's Airbnb accommodation and short-term rental market has been consistently topping 2021 as one of Australia's best performing cities, with MadeComfy's ACT properties averaging an occupancy rate of 81% between January to June, while average daily rates booked in June 2021 for MadeComfy Canberra listings ranged between $124 to over $200 for one-bedroom to three-bedroom and larger properties respectively.
Canberra's short-term rental market has shown to be highly resilient to temporary Covid-19 travel restrictions (including those imposed on travellers arriving from other states), as guests to this market are driven by work (particularly in the Australian Public Service), education, business engagements and relocation.
Get your free copy of the 2021 Canberra short-term rental market report, prepared by MadeComfy:
Canberra's local economy has performed strongly throughout 2021 and as at May, the ACT recorded an unemployment rate of just 3.6% - the lowest among all states and territories in that month*.
Federal government workers have driven strong demand for flexible accommodation alternatives to traditional long term rentals and leases, particularly as many are on fixed contract terms, or recently moved into the city and require a base to stay until they find more permanent accommodation.
Canberra has also benefitted from very low numbers of detected Covid-19 cases since the start of the pandemic, and successfully avoided strict lockdowns since May/June 2020.
In Commsec's latest State of the States report, the ACT has led every other state for relative economic growth in state final demand (household + equipment spending) in the year to December 2020, supported by its firm job market and new workers moving into the state for short and mid-term contracts.
Based on market-wide data from AirDNA, occupancy rates for short-term rentals in the ACT have remained above 75% every month for the year to date June 2021, and outperformed all other capital city markets even through the Covid-19 pandemic lockdowns between March - May 2020 where mid-term stays between 1-3 months were particularly popular.
Average nightly rates have been increasing consistently since the end of lockdown restrictions last year in May. Across all property sizes, Canberra average nightly rates were $185 in June 2021, up +23% YoY.
With high short-term rental earnings, consistent occupancy rates and relatively low purchase values compared to other major capital cities, Canberra apartments between one to three bedrooms around the Inner North and South, Belconnen, Woden and Gungahlin regions represent the best opportunities for Canberra property investors seeking to achieve higher yields in the short-term rental market.
Below are some of the top performing Canberra suburbs by short-term rental occupancy rate over the last 12 months:
