For Sydney property owners, the current peak summer season from December 2019 to February/March 2020 could see a record level of demand for short-term accommodation.
Data trends from active entire-home listings booked on Airbnb and Homeaway show consistent year on year growth in booked properties, with significant spikes in nightly rates and demand each summer.
Three key events drive the demand increase over the peak summer season:
- Extreme demand and high nightly rates on new years eve, particularly for properties in close proximity to areas near fireworks. Properties with a view of the fireworks always command very high rates on new years eve, and get booked out far in advance.
- High demand for larger homes from families and groups over the Christmas period.
- High demand from families over the school holiday period.
Between September 2018 - 2019, nightly rates in the Summer months of Sydney averaged 15% higher than the average monthly rates for the rest of the year, while nightly rates in December were 25% higher.
Based on data from properties managed by MadeComfy in Sydney, average nightly rates for pre-booked Summer nights are currently 56% higher than the average of booked nights in Spring 2019.
Sydney average daily rate/booked nights seasonal trends
Date source: entire-home listings on Airbnb and Homeaway, AirDNA.
The current weak Australian dollar is also expected to drive high numbers of international visitors to the city, as well as encouraging more domestic visitors to travel within the country this Summer.
Properties in or near popular coast suburbs such as Bondi, Manly and Coogee see particularly high demand during this period, although other regions popular for Airbnb such as the city and inner west also benefit from a general demand uplift during the peak season.
According to the latest analysed data from MadeComfy for 2019, the top suburbs for Airbnb rentals based on a combination of accommodation demand and occupancy rate in Summer 2018/19 were:
- North Sydney
- Surry Hills
Assessing your property for short-term rentals
Depending on the location, number of bedrooms and condition of the property, investors are able to earn from 40% higher returns with professional short-term rental management over earnings compared to a conventional lease.
Leading Airbnb management company MadeComfy offer free property assessments and income forecasts for short-term rental, based on the available market data and current performance of nearby listed properties. MadeComfy provide an end-to-end management including property listing, cleaning and guest communication for property owners seeking to earn higher returns through short-term rental.
Disclaimer: while due care is taken, the viewpoints expressed by contributors and/or paid content do not necessarily reflect the opinions of Your Investment Property.
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