Airbnb market growth has eased on the Gold Coast this quarter, as we reach the end of the summer high season. The market has expanded to include homeaway listings, as more hosts look to alternative platforms for additional sources of revenue.
The total number of properties for rent at the end of March 2019 was 9,654 with 77% of those being entire home rentals. 7,384 are considered ‘active rentals’, which are homes available for at least 30 days of the year. 33% of the total active properties are available full time, showing the steady growth of investment properties being listed on the short-term rental market.
The majority of active listings are 2-bedroom apartments located along the coastline, hosted by both private home owners and onsite managers of holiday rentals. 80% of listings are 1 and 2 bedroom apartments and 3-bedroom homes, with an average of 4 – 6 guests per booking.
The end of this quarter is the beginning of winter low season, so the Airbnb market will experience a drop in both the number of active listings and the average daily rental rate over the next 3 months, with a recovery as spring approaches. Now is a good time for budding Airbnb hosts, to prepare their listing for the peak season.
As of May 2019, the average daily rate achieved for a property listed on Airbnb was $133 with an occupancy rate of 56%*. These figures are below the Hotel industry average of $204 ADR and 72% occupancy rate. The Gold Coast was the best performing hotel market in Australia this quarter, with an increase in corporate travellers making up 39% of travellers. However, a growing supply pipeline over the next 3 years could place pressure on future revenue.
*Airbnb recommends that an occupancy rate of 50% be used to calculate potential rents. This rate will vary depending on property type and location.
Source: Airbnb, AirDNA, CBRE