The state of Australia's short-term rental market: Trends and opportunities in 2025

27 Mar 2025
5 min read
The state of Australia's short-term rental market: Trends and opportunities in 2025

Key highlights

  • Travel demand is still climbing. Domestic holidays remain strong and international arrivals are closing in on 2019 levels.
  • Competition is fiercer than ever. Listings grew about 11 % last year, so average properties now fight on price alone.
  • Rules are tightening. From 1 January 2025 new levies, night-caps and compulsory registers arrive in Victoria, WA and parts of NSW.
  • Longer stays pay. Trips of 28+ nights are Airbnb’s fastest-growing category—perfect for remote workers and VFR (visiting friends & relatives).

2024 in one minute

Market metric National trend (FY 2024) Star performers
Occupancy (the share of nights booked) Holding steady at 55-60 %. Gold Coast & Perth ~80 %.
Average daily rate (ADR) Between A$230–250 per night. Gold Coast averaging A$310.
Supply growth Listing count rose by about one-tenth year-on-year. Strongest in inner-city suburbs of Sydney & Melbourne.
Long-stay bookings Now > 20 % of all room-nights, up sharply post-COVID. Digital-nomad hubs, university cities & coastal towns.

Take-away: demand is healthy, but only well-staged, smart-priced homes captured revenue growth.

New rules for 2025

Location What’s changing Host to-do list
Victoria All bookings attract a 7.5 % short-stay levy (collected by the OTA). Adjust nightly pricing, show levy on statements, keep tax records.
Western Australia Mandatory STR register statewide; un-hosted Perth properties need planning approval past 90 nights/yr. Apply for a STRA number and display it on every listing; track night count.
Byron Shire, NSW Annual cap drops to 60 nights for most un-hosted homes. Switch to hosted stays, pivot to 90-day+ lets, or list in nearby shires.
Rest of Australia Federal & local councils drafting a national register and potential night-caps. Stay alert to council bulletins; get registration documents ready early.

Miss a deadline and your listing could be fined or de-listed—plan now.

Market pulse by region

  • Sydney & NSW Coast – Biggest demand, toughest competition. Premium harbour-view or design-led homes still earn standout ADRs.
  • Melbourne & Victoria – Event calendar (Aus Open, F1, concerts) underpins occupancy; factor the new levy into 2025 budgets.
  • Queensland – Gold & Sunshine Coasts lead the nation’s RevPAR; Brisbane’s profile rises with the Lions Tour and Olympic build-up.
  • Perth & WA South-West – Undersupplied market + blockbuster concerts keep occupancy high; registration deadline looms.
  • Tasmania & other regional escapes – Seasonal but strong; holiday towns cracked 90 % occupancy over summer. New Hobart flight connections suggest further growth.

Five winning plays for hosts in 2025

  1. Lock in compliance early. Registration IDs, night-cap tracking and levy accounting should be embedded in your workflow before New Year’s Day.
  2. Optimise for 28-night-plus bookings. Provide fast Wi-Fi, work-friendly desks and monthly discounts to capture remote workers.
  3. Use dynamic pricing daily. Fewer than one-third of Aussie hosts do—those that do outperform on both occupancy and ADR.
  4. Own the events calendar. Lions rugby tour, Aus Open, F1, Vivid, regional festivals—open calendars 12–18 months out and set event-specific rates.
  5. Differentiate beyond price. Hotel-grade cleaning, thoughtful amenities, eco-touches and “Instagram-worthy” styling convert browsers into bookings.

Where MadeComfy keeps you ahead

Typical host headache MadeComfy solution
Navigating new levies, caps & registration deadlines We handle registration, levy calculations and compliance reporting end-to-end.
Standing out in a crowded marketplace AI-driven dynamic pricing, professional photography and copy to boost search rank.
Meeting hotel-grade guest expectations 24/7 guest support, hotel-quality linen & cleaning, proactive maintenance.
Needing clear performance insight Real-time dashboard—earnings, occupancy, compliance status and market comps.

Ready for 2025?

Exploring your options? Book a free revenue forecast to see how MadeComfy can unlock your property’s full earning potential—minus the regulatory headaches.

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