Canberra among Australia's most resilient short-term markets in 2021

Canberra's Airbnb accommodation and short-term rental market has been consistently topping 2021 as one of Australia's best performing cities.

MadeComfy's ACT properties average an occupancy rate of 81% between January to June.

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 resilience during COVID-19

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.

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*.

ACT leads Australia's unemployment rate (May 2021)*

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.

ACT leads in relative economic growth

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 AirDNA market data, short-term rental occupancy rates in the ACT have consistently exceeded 75% since June 2021, outperforming other capital city markets during the Covid-19 pandemic lockdowns in March to May 2020.

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.

Best places to invest for short-term rentals in Canberra for 2021

Canberra apartments between one to three bedrooms in the Inner North, South, Belconnen, Woden, and Gungahlin regions offer the best opportunities for short-term rental investors seeking higher yields due to high short-term rental earnings, consistent occupancy rates, and relatively low purchase values compared to other major capital cities.

Below are some of the top performing Canberra suburbs by short-term rental occupancy rate over the last 12 months:

Conclusion

Canberra’s short-term rental market is booming—backed by strong demand from government workers, business travellers, and relocating professionals.

With high occupancy rates, rising nightly prices, and a resilient economy, there’s never been a better time to invest or book a stay in the nation’s capital.

Whether you’re a property owner looking to maximise returns or a guest seeking a premium home-away-from-home, MadeComfy takes the hassle out of short-term rentals. From sleek city apartments to spacious family homes, we’ve got Canberra covered.