We reached record numbers for the Gold Coast Airbnb market this summer season, with both the average daily rate and occupancy rate surpassing the hotel industry. In December alone the average daily rate for Airbnb was $269, while the hotel industry remained stable around $197. The occupancy rate for Airbnb reached as high as 80%, which is 10% higher than the average occupancy for hotels on the Gold Coast.
The number of entire homes that came onto the market increased to 82% this summer, up 10% from a year ago. Still dominated by 2-bedroom apartments, the number of properties available full-time has also increased to 48%, which is an increase of 16% from this time last year.
The trend we see emerging in the graph above, is that the summer months have outperformed the hotel industry whilst the winter months did not perform as well. This means there is more volatility in the Airbnb market with higher risk and returns, compared with the relatively stable income generated by hotel assets.
The important thing to remember about occupancy rates for the Airbnb market, is there are more properties located in suburban areas away from the coastline. Whereas most hotels are located within close proximity to the beaches and major venues like Golf Courses and Hinterland Wineries. This means there is more variability in the performance of Airbnb property, depending on its location. It is important to assess the income potential of your property against other properties in the surrounding area, to get an accurate estimate for your daily rates.
Gold Coast Hotels (left) vs Gold Coast Airbnb properties (right)
At the time of writing, the market is experiencing some uncertainty around how the novel coronavirus will affect the Gold Coast Tourism market, with a large number of tourists visiting from China, Japan, Singapore and Thailand. However, there are a large number of domestic visitors who stay at local Airbnb’s and this may be a saving grace for the Gold Coast Airbnb market.
The good news is that the Gold Coast Airbnb market is continuing to grow and under normal market conditions, highly likely that it will continue to do so.
Source: Airbnb, AirDNA, CBRE, fivestarhost