2022-2023

Australian
Short term rental Report

Short-Term Residence vs. Long-Term

Residence
 TABLE OF CONTENTS
Introduction

Sydney

Melbourne

Brisbane

Gold Coast

Canberra

Regional Australia

Key Observations
INTRODUCTION
In recent years, the Australian short-term rental (STR) sector has experienced remarkable expansion, as travelers are
progressively favoring STR accommodations over traditional hotels. This shift has been driven by a variety of factors, further
accentuated during the pandemic, such as cost-effectiveness, enhanced privacy, and the spaciousness that STRs provide.
Notably, this trend is expected to persist for the foreseeable future. In contrast, the long-term rental (LTR) market in Australia
has historically offered stability and consistency for both property owners and tenants.

When comparing STR to LTR, the appeal of STR lies in its flexibility and adaptability. Travelers appreciate the ability to select
accommodations tailored to their specific needs and the freedom to book shorter stays, making it an attractive option for those
seeking a temporary abode. Additionally, the cost-effectiveness of STRs often makes them a preferred choice for travelers
looking to save on accommodation expenses.

On the other hand, LTR caters to individuals seeking a more stable and permanent living arrangement. It provides tenants with
the assurance of a consistent place of residence, while landlords benefit from a dependable source of rental income. LTR is
often favored by those who prioritize long-term stability and are willing to commit to a property for an extended duration.

As the STR sector continues to grow in Australia, property investors face a choice between these two rental models, each with
its own set of advantages and considerations. The key to making informed investment decisions lies in understanding the
distinct advantages and challenges associated with STR and LTR, and aligning those with your investment goals and the needs
of your target tenants or travelers.

Study Of Tourism Trends In Australia

In 2023, Australia witnessed a remarkable surge in international tourism, welcoming a staggering 5.8 million travelers—a
staggering 391% increase compared to the previous year. Analyzing the purpose of these visits provides valuable insights
into the diverse motivations driving global travel. Among the varied reasons for visiting Australia, reconnecting with
friends and relatives emerged as the predominant purpose, constituting 43% of the total arrivals.

Holiday tourism closely followed, representing 31.8%, underlining Australia's allure as a sought-after destination for
leisure and recreation. Furthermore, the business sector played a significant role, with 8.9% of international travelers
arriving for professional engagements, highlighting Australia's standing as a hub for international business activities.

Additionally, the education sector attracted 6.5% of visitors, reflecting the country's reputation as an academic
destination. The remaining percentage, categorized as 'Others,' encapsulated a diverse range of motives. Employment-
related travel constituted 3.9%, indicating Australia's appeal as a destination for work opportunities. This data
underscores the multifaceted nature of Australia's appeal on the global stage, catering to a broad spectrum of interests
and contributing significantly to the nation's tourism landscape and economic vibrancy.

The graph illustrates compelling tourism trends in Australia, focusing on both interstate and intrastate visitation patterns
across key regions, namely New South Wales, Queensland, and Victoria. Notably, the data reveals dynamic fluctuations
in tourism activity, offering valuable insights into the preferences and movements of travelers within and outside these
states. New South Wales emerges as a pivotal hub, showcasing consistent growth in both interstate and intrastate tourism.
Queensland, renowned for its natural attractions, exhibits a pronounced upward trend in intrastate tourism, while Victoria,
with its cultural offerings, sees a surge in interstate visitation.

Str Performance In 2023

The hotels and resorts business in Australia is worth $1.3 billion right now, and it's expected to grow by 13.3 percent by
2023. (IBISWorld). About 1.6% of the country's GDP comes from the tourism industry as a whole (Statista).

Currently, 23% of bookings occur offline, but a significant transformation is expected. By 2027, 91% of total revenue is
anticipated to come from online sales. Notable online travel agents include Booking.com (35%), Expedia (15%), Trivago
(15%), Agoda (10%), Hotels.com (10%), Wotif (5%), and others (10%).

The hotel segment's steady annual growth, projected at a CAGR of 1.85% until 2027, underscores its resilience. However,
the increasing dominance of online travel agents (OTAs) presents a transformative landscape. Currently, 23% of bookings
are offline, but a staggering 91% of total revenue is anticipated to be generated through online sales by 2027, amounting
to US$7.27 billion.

Vacancy % indexed to 2019, Jan – Aug 2023

Str sector in Australia

Australia has always been popular, which is why short-term rental investments are so popular there. Australia gets more
than 5.6 million international visitors a year (May 2023) and spends more than $120 billion on tourism each year. Before
the pandemic, the tourism industry employed 5% of the workforce. Australia's tourism industry will always be very
important. So much is available there. Some of the greenest short-term rentals in the world are there, and the market is
very unique. Each stay lasts an average of 37 nights, which is likely due to the fact that so many gap year travellers rush to
Australia every year and the long flights that are needed to get there.

As of January 2023, key players in the Australian online travel market include Booking.com (35%), Expedia (15%),
Trivago (15%), Agoda (10%), Hotels.com (10%), Wotif (5%), and others (10%). This digital shift aligns with the
changing preferences of a tech-savvy consumer base. From COVID times, there has been a big rise in demand for STRs.
Visiting family and friends (VFR) is the main reason for this trend. After the pandemic, long-term STR stays are also
popular, with bookings for more than 28 days being the fastest-growing group.
As of June 2023, the evolving landscape of traveler preferences in Australia has revealed intriguing insights into
accommodation choices. While a considerable number of visitors opted to stay with family or friends, a noteworthy
trend has emerged—there has been a discernible surge in the inclination towards unique and personalized Short-Term
Residences (STR). Beyond the conventional options of family stays or standard hotels, a considerable portion of travelers
are now embracing the diverse offerings of the STR market, ranging from trendy Airbnb listings to other bespoke rental
property services.

Purpose Of Visit June 2023

Sydney
In the March quarter 2023, occupancy rates in New South Wales, Sydney and Regional NSW improved as compared to
the same quarter in 2022 (up 21 percentage points, 29 percentage points and 3 percentage points, respectively). This is not
surprising considering the March quarter 2022 was still a difficult period for the accommodation sector, with the impact of
the Omicron variant still being felt by the industry. As COVID-19 restrictions were lifted nationally in 2023, state and
regional events have returned, pushing demand for accommodation. Accommodation supply in NSW in the March quarter
2023 was significantly higher than the December quarter 2022 – there were 27 more establishments and 1,424 rooms.

One reason for the high demand for STRs in Sydney is to the return of big sports and cultural events like the World Cup
for Women, Vivid, the settling down of internationa and business trips, as well as strong travel within the country after the
pandemic. The time off during the summer as well as busy travel times like Easter, ANZAC Day, Days off from school
and holidays also help. A lot of people live in the city.
The effect of the COVID-19 epidemic is shown in time series charts that extend to March 2023; these charts show that the
performance of accommodation in New South Wales saw a severe decline in April 2020 and has seen a choppy recovery
since then. The lockdown and state border restrictions that were enacted in the middle of June 2021 as a reaction to the
COVID-19 outbreak in Sydney led to a significant fall in accommodation performance for the state of New South Wales
(NSW). Nevertheless, when the state's partial lockdown was lifted in October 2021, there was a major rebound beginning
in November. There was a significant increase in the number of Omicron cases in January 2022, which had a negative
impact on the performance of accommodations; however, with the reopening of state and international borders, there were
indications of a rebound in the months that followed.

Source: https://www.destinationnsw.com.au/

The regulatory framework in NSW reflects a balance between facilitating the growth of the STRA sector and addressing
potential concerns. The most noteworthy legislation is the Fair Trading Amendment (Short-term Rental Accommodation)
Act 2018. This Act empowers the NSW Government to regulate the sector, ensuring a fair and transparent marketplace
for both hosts and guests.

The implementation of all regulatory frameworks was completed in 2022, and the industry is now operating within the
clear guidelines that include: a planning framework; fire safety standards for STRA dwellings; a government-run STRA
Register; and the Code of Conduct that was initially launched in the previous decade.

Case study
Specs
1. 6 guests
2. · 3 bedrooms
3. · 3 beds
4. · 2.5 baths
description
An award winning designer terrace located in the heart of Sydney- the Moo Project.

Originally a derelict boarding house, the inner city townhouse has been transformed into a beautifully designed 3
bedroom, 2.5 bathroom home.

List of features:

Wifi throughout
Cooling/heating in every room
Fully equipped kitchen
OUtdoor kitchen with BBQ
Fully equipped laundry with washer and dryer
Sound system
hair dryers
TVs in living room and all bedrooms
Professionally laundered linens and towels

In detail:

Enjoy features including open plan indoor/outdoor living space, sun drenched court yard with outdoor kitchen, plus a
fully equipped kitchen with coffee machine and cozy living room. Laundry with washer dryer facilities in the house also.
CCTV of the front and back of the house is also accessible by guests for added peace of mind and security.
The Master bedroom located on the third level is loft style with views of Woolloomooloo and a private en-suite. The
second bedroom is queens size with a private balcony and separate bathroom. And the third bedroom houses a double
bed. All rooms have built in robes, air conditioning and a television.

We will ensure your stay is as comfortable as can be with professionally laundered towels and linen, bathroom
amenities on hand (bodywash and handsoaps) and our personal guide book to the area.

Our guests to date have loved their stay here and appreciated the state of the art design, facilities and convenient
location, so we have no doubt you will also.

Guests will be met by our air butler to receive keys and an introduction to the house. Late night arrivals will be provided
with alternative instructions to gaining access to the house.

Parking options:

Domain Car park less than a 10 min walk from house check there website for details. (Website hidden by Airbnb)

Street Parking Details:

Weekends and after 4 pm Friday to Monday are not metered
Week days 9am - 4pm there is 1 - 2 hour on street parking limit, not metered before/after these times

Guest will be checked in and checked out by our Air Butler service who will be in touch in the few days leading up to
your stay via Whatsaap

Historic Woolloomooloo is a vibrant & diverse community sitting amongst the city's best bar & restaurants, & spotted
with art galleries, iconic Sydney pubs, independent theaters & a weekend farmers market, all walking distance from the
house. It should be noted that the area is true inner-city living and the convenience of the location is also appreciated by
the homeless who frequent the nearby public areas due to a number of community run services in the neighbourhood.

The beauty of our location is that the best of Sydney is at your doorstep and the CBD is only a 10 min walk away.

5 min to st James train station - direct line to airport

5 min to kings cross station - direct line to Bondi

5 min walk to harbour

10 min walk to city

20 min walk to opera house

The space
An award winning designer terrace located in the heart of Sydney- the Moo Project.

Originally a derelict boarding house, the inner city townhouse has been transformed into a beautifully designed 3
bedroom, 2.5 bathroom home.

List of features:

Wifi throughout
Cooling/heating in every room
Fully equipped kitchen
OUtdoor kitchen with BBQ
Fully equipped laundry with washer and dryer
Sound system
hair dryers
TVs in living room and all bedrooms
Professionally laundered linens and towels

In detail:

Enjoy features including open plan indoor/outdoor living space, sun drenched court yard with outdoor kitchen, plus a fully
equipped kitchen with coffee machine and cozy living room. Laundry with washer dryer facilities in the house also.
CCTV of the front and back of the house is also accessible by guests for added peace of mind and security.

The Master bedroom located on the third level is loft style with views of Woolloomooloo and a private en-suite. The
second bedroom is queens size with a private balcony and separate bathroom. And the third bedroom houses a double bed.
All rooms have built in robes, air conditioning and a television.

We will ensure your stay is as comfortable as can be with professionally laundered towels and linen, bathroom amenities
on hand (bodywash and handsoaps) and our personal guide book to the area.

Our guests to date have loved their stay here and appreciated the state of the art design, facilities and convenient location,
so we have no doubt you will also.

Guest access
Guests will be met by our air butler to receive keys and an introduction to the house. Late night arrivals will be provided
with alternative instructions to gaining access to the house.

Parking options:

Domain Car park less than a 10 min walk from house check there website for details. (Website hidden by Airbnb)

Street Parking Details:

Weekends and after 4 pm Friday to Monday are not metered
Week days 9am - 4pm there is 1 - 2 hour on street parking limit, not metered before/after these times

Analysis.
Long-Term Rental (LTR): $8000 per month

Short-Term Rental (STR): Assuming an average of 15 nights booked per month, the income would be $400/night * 15
nights = $6000 + $100 cleaning fee = $6100 per month.

Flexibility: STR provides the flexibility to adjust pricing based on demand, events, or seasons. During peak times, the
property can command higher nightly rates, maximizing returns.

Personal Use: The property owner has the flexibility to use the property for personal purposes when it's not booked,
which might not be possible with a long-term rental.

With an average occupancy rate of 60% (9 nights per month), the property can still generate $3600 per month through
STR.

High demand periods or special events can lead to increased occupancy, further boosting income.

5. Marketing and Exposure:

The Airbnb platform provides global exposure, attracting a diverse range of guests.

Positive reviews from short-term guests can enhance the property's reputation and attract more bookings.

6. Property Maintenance:

Frequent turnovers allow for regular property inspections and maintenance, ensuring the house stays in top condition.

STR guests typically treat the property with care as they are aware of the short-term nature of their stay.

Conclusion:

While the long-term rental provides a stable monthly income, the short-term rental option offers the potential for
higher overall returns, especially during peak seasons. The flexibility, higher income potential, and exposure on global
platforms make short-term rentals a compelling choice for property owners seeking to maximize their investment. The
Moo Project's unique design and prime location make it an ideal candidate for a profitable short-term rental strategy.

Statistics:

According to industry data, properties in sought-after locations like Sydney can experience up to a 30% higher return on
investment (ROI) through short-term rentals compared to traditional long-term rentals. This is attributed to the ability to
adjust pricing based on market demand, capitalize on peak seasons, and attract a wide range of guests seeking unique
and well-designed accommodations.
Melbourne
Melbourne, acclaimed as Australia's most livable city, stands as a magnet for a significant influx of visitors, both
domestically and internationally. The city's prominence is underscored by pivotal cultural and sporting events such as
Formula 1, the Australian Football League, and global competitions like the FIFA Women's World Cup and the
Australian Open. These events serve as robust attractions for tourists, forecasting sustained revenue growth until 2023.
Moreover, the resurgence of operations at China's multi-billion-dollar facility indicates a positive trajectory for outbound
tourism, presenting a lucrative opportunity for investors. In the dynamic landscape of Melbourne's hospitality sector, the
demand for short-term rentals (STR) has emerged as a focal point. The city's current supply-and-demand dynamics reveal
a notable gap, particularly concerning the demand for STR accommodations exceeding the available bookings. This
discrepancy points to a significant market potential for investors willing to capitalize on the growing preference for short-
term stays in this thriving metropolis.

A clear trend of rising weekly rents across a range of property types throughout the year adds another layer to this
storey. Prices for renting all types of homes, from two-bedroom to three-bedroom units, have gone up a lot recently. In
addition to showing how popular Melbourne's STR options are, this rise also shows that the market is competitive and
growing. As we look at Melbourne's STR market, the performance spike in 2023 and the ongoing supply-and-demand
dynamics make it appealing for investors. When you combine high occupancy rates with falling vacancy rates, you get a
strong foundation for people who want to get into the market. Involving in Melbourne's STR properties isn't just a smart
financial move; it's also a chance to be a part of a thriving ecosystem that adapts to the changing needs of modern
travellers. Customers looking for unique places to stay can find a great opportunity in Melbourne's STR market. Because
of the way supply and demand work, the market makes it possible for stays to be individually tailored to each guest. The
rise in weekly rents shows how competitive the market is and how valuable and sought-after short-term rentals are in
this high-traffic city.
The STR market in Melbourne has been sailing an intriguing path marked by a significant supply and demand mismatch.
Bookings have continually exceeded the number of residences that are accessible, producing a fascinating circumstance
for individuals who are looking for distinctive lodging adventures. This prolonged period in which demand has been
higher than supply has led to the creation of a dynamic market in which astute investors stand to profit. The year 2023
marks a significant turning point for Melbourne's short-term rental (STR) sector, which will see a tremendous increase in
performance. The increased demand for lodgings that are available for a shorter period of time is reflected in the rise in
occupancy rates. The remarkable decline in vacancy rates, which fell to a meagre 1.2 percent, is something that stands
out as particularly impressive. This data not only demonstrates that there is a significant increase in demand, but it also
indicates that we are entering an era of high occupancy. As a result, the potential for financial returns on investments
appears to be quite favorable.

Case study
Specs
4 guests · 2 bedrooms · 2 beds · 1 bath

Description
Art deco revival style home. Well designed by interior designer, furnished aesthetically by bespoke furniture, Australia
and international artist works. The one and only, not to be found another home like this. Located in Melbourne CBD, right
across to Southern cross station, sky bus to Melbourne airport, free tram zone to anywhere in CBD, close to Markets,
Parks, Restaurants, Shopping Malls, Etihad Stadium, Melbourne Exhibition Center and more.

The space
This Art Deco revival style home is spacious with two bedrooms and one bathroom, open plan living, modern kitchen,
private balcony. Once you enter the apartment, you will see a vivid blue Greek mythology inspired vase standing on a
modern marble console. This original vase is handmade by Italian artist Stefania Boemi. A rose and ruby coloured ball
bring you energy and luckiness.

The living area is thoughtfully designed with dark blue painted walls, bespoke luxurious velvet sofa, Indian handmade
rug, a handwoven and hand dyed in Turkey silk velvet cushion, a modern days holographic acrylic coffee table. Above the
sofa wall is hung with famous Australia artist works by Michael Bond and Antoinette Ferwerda.

The two bedrooms are individually designed with carefully selected British printed wallpapers and bespoke velvet
bedheads. The wallpaper floral designs are the reimagines by rarely found late 19th century floral books. The bedheads
are hand made by Melbourne local craftsmen. We use a premium Sealy mattress to provide you extra comforts. One
bedroom hangs with famous Australia artist Jai Vasicek limited print and tile. The other bedroom hangs with classic
artwork by Johannes Vermeer.

In the kitchen, you will find all the utensils needed for cooking, a beautiful set of China teapot and cups with Moroccan
pattern and some delightful plates designed by Australia artist Whitney Spicer. A variety of tea bags and milk will be
provided. All the windows have both blackout and sheers to give you double privacy.

This apartment is a hidden gem in the city, a getaway place from your everyday home for something different, to
experience the art deco and luxurious interiors, to feel the city’s energy, know about the culture, to relax and entertain
yourself. For china teapot & cups, they are not recommended for dishwashers, please handwash after use. The green
plants in pots are real plants. If you stay longer than five days, please water the plants, thank you.

Airport transfer is very easy, Take airport shuttle bus (Skybus) from the airport to Southern Cross Train Station then walk
3 minutes’ to the apartment. Apartment address is Rose Lane, Melbourne
Parking is not available at this apartment. But guests don't really need a car - the tram is right there, train nearby and most
things in Melbourne can be walked to in 5 minutes from this great location - central but quiet!!

Note: smoking is not allowed in the apartment; smoking is not allowed on the balcony.

Guest access
The entire apartment, fully equipped kitchen including dishwasher, stove, oven, fridge, toaster, microwave, kettle,
cooking utensils. Basic seasonings, tea bags and milk, shampoo, hair conditioner, body wash are present for free. Laundry
has a washer and dryer combo, iron and ironing board. Washing detergent liquid is provided. Free fast wifi, shared gym
and pool in the common area (Level 5).

Other things to note

1. All the artist's works and objects in the apartment are valuable and rare to find. Please do not move them. Some
furniture is custom designed and made. Please use them gently.

2. Please wash all dishes and put rubbish in the bin chute before check out.

3. For china teapot & cups, they are not recommended for dishwashers, please handwash after use.

4. Champagne Flutes glass is hand wash only with cold water please.

5. The green plants in pots are real plants. If you stay longer than five days, please water the plants, thank you.

Analysis
Pricing Structure:

Short-Term Rental (STR):

Nightly Rate: $94

Cleaning Fees: $150 (one-time)

Service Fees: Included

Long-Term Rental (LTR):

Monthly Rate: $3000 (excluding utilities)

Cost-Effective for Short Stays:

For travelers seeking a unique and luxurious experience for a few nights, the short-term rental option at $94 per night
provides a cost-effective alternative to traditional hotels. This allows guests to enjoy the art deco ambiance without
committing to a long-term lease.

Flexibility and Freedom:

Short-term rentals offer flexibility for guests who may be on vacation, business trips, or short-term assignments. The
proximity to public transportation hubs further enhances the freedom to explore Melbourne conveniently.

All-Inclusive Amenities:

The short-term rental includes essential amenities such as fully equipped kitchen facilities, toiletries, and access to
shared amenities like the gym and pool on Level 5. This comprehensive package enhances the overall value for guests
during their stay.

Cultural and Artistic Experience:

Guests choosing short-term rentals not only gain accommodation but also immerse themselves in the art deco and
cultural atmosphere of the apartment. This unique experience adds value beyond the physical space.

Statistical Analysis:

Savings Comparison:

For a week-long stay, the short-term rental would cost $94/night x 7 nights = $658 (excluding fees).

A comparable week-long stay in a hotel with similar amenities and location could exceed this cost significantly.
Increased Occupancy and Revenue:

Short-term rentals often experience higher occupancy rates throughout the year due to their appeal to various types of
travelers. This translates to increased revenue potential compared to a fixed monthly rate.

Tourism and Local Economy Boost:

Short-term rentals contribute to the local economy by attracting tourists who spend on dining, shopping, and
entertainment. This economic boost benefits the surrounding businesses and creates a positive ripple effect.

Brisbane
The winds of change are propelling Brisbane towards unparalleled vibrancy and livability. Nestled in the heart of
Queensland, this city is undergoing a metamorphosis that transcends mere infrastructure development. It's a holistic
transformation that intertwines cutting-edge urban planning, lifestyle amenities, and a surge in employment opportunities.
The convergence of these factors paints a compelling portrait of Brisbane's future—one that is destined to be a major
tourism and business destination.

Amidst Brisbane's evolution, the Short-Term Rental market emerges as a beacon of opportunity for astute investors
seeking to ride the wave of this transformative journey. As the city gears up for the global spotlight with the upcoming
Olympic Games, the demand for flexible and personalized accommodations is set to soar. STRs offer a unique and agile
investment avenue, perfectly aligned with the evolving preferences of modern travelers.

This graph provides a comprehensive overview of the diverse demographic composition of travelers who visited
Brisbane in the year 2023.
An essential aspect of Brisbane's STR market is the discernible increase in weekly rents across various property types.
Whether it be two-bedroom, three-bedroom residences, or a combination of housing options, the upward trajectory in
rental rates throughout the year signifies the growing value and desirability of short-term rental properties. This trend
not only points to the financial viability of investing in STRs but also underscores the city's attractiveness as a destination
for diverse traveler preferences.

The robust performance of Brisbane's STR market is further exemplified by impressive occupancy rates and exceptionally
low vacancy rates. In 2023, the STR occupancy rates have soared, reaching levels that underscore high demand and
sustained interest from both domestic and international travelers. The noteworthy drop in vacancy rates to a mere 1
adds another layer of resilience to the market, showcasing its ability to adapt and thrive even in challenging
circumstances.

Case study
Specs
2 bedrooms · 2 beds · Dedicated bathroom

Description
Situated in the heart of Teneriffe, located within walking distance of all amenities including a Woolworths Metro at the
building.
• Rooftop unique in design, city and river views, Elevated in-ground pool, Two barbeques and four individual dining
spaces
• Woolworths Metro on ground floor
• Short walk to multiple cafes, restaurants, bars and brewery's
• 2 min walk to Teneriffe River Walk
• 2 min walk to bus stop and Teneriffe Ferry Terminal
• Easy access to Brisbane CBD and Fortitude Valley

The space
Spacious Bedroom in a stylish flat with own bathroom.
Located in Teneriffe’s heart neighbourhood.
Up to two guests

During your stay

Happy to guide you in Brisbane if is needed

Analysis
Long-Term Rental: $800 per month

Short-Term Rental: $53 per night, with an additional $100 in cleaning and service fees
Maximized Income Potential:

Given the property's prime location and the vibrant neighborhood of Teneriffe, short-term rentals can generate
significantly higher income compared to a fixed monthly long-term lease. With a nightly rate of $53, the potential
monthly income through short-term rentals can surpass the long-term rental price.

Flexibility and Dynamic Pricing:

Short-term rentals allow for dynamic pricing strategies, enabling hosts to adjust rates based on demand, local events,
and seasonal fluctuations. This flexibility can lead to increased profitability during peak periods, holidays, or special
events in the area.

Higher Occupancy Rates:

The property's strategic location, coupled with its appealing features such as the rooftop with city and river views, an
elevated in-ground pool, and proximity to popular attractions, can attract a steady stream of short-term guests. This
dynamic can result in higher occupancy rates compared to a traditional long-term lease.

Diverse Guest Profile:

Short-term rentals cater to a diverse range of guests, including tourists, business travelers, and individuals seeking
temporary accommodation. This diversity not only broadens the property's market appeal but also reduces the risk
associated with relying on a single long-term tenant.

Statistical Insight:

According to industry data, short-term rentals in sought-after urban locations often yield up to 30% higher revenue
compared to long-term rentals. The ability to charge a premium for prime locations and unique amenities, coupled with
the flexibility to adjust prices based on market demand, contributes significantly to the financial success of short-term
rentals.

Gold Coast
The short-term rental (STR) market on the Gold Coast has not only survived the challenges of life after COVID-19, but it
has come out stronger than ever. This coastal paradise beckons with a unique mix of sun-kissed charm, steady year-round
occupancy, and unique peak times in April and September, when school vacations are in full swing. Aside from its sandy
beaches, the Gold Coast's STR market tells a storey of strength, with cross-state migration after the pandemic driving
demand to all-time highs.
After the global pandemic, the Gold Coast STR market shows how strong and flexible people can be. The number of
occupied rooms has not only levelled off, but gone through the roof, showing a strong recovery. Notable peaks in April
and September, timed to coincide with school breaks, add a layer of predictability and give real estate investors a steady
stream of income all year long.

The Gold Coast's appeal has grown since it recovered from the pandemic. This has caused people to move from other
states, which has increased the need for short-term rentals. Investors in real estate have made a lot of money from renting
out their homes, and this influx has also led to the growth of the corporate travel industry. As the Gold Coast grows older,
it is becoming a popular place for business travellers who want to be productive while also enjoying the peace and quiet of
the coast.

The high demand for short-term rentals on the Gold Coast translates into a compelling investment opportunity. Beyond
the financial allure, investors in this market benefit from the flexibility of using their property when needed—a privilege
not afforded by long-term rentals. With the travel industry making strides toward recovery, especially on the international
front, the Gold Coast is poised for sustained growth, offering an opportune moment for property investors with existing
portfolios or those considering entry into this dynamic market.
Case study
Specs
2 bedrooms · 2 beds · Private attached bathroom

Description
Our cool and comfortable four-bedroom house will make you feel that you are in your own place, we are so trustfully
couple semi-professional humble, honest and flexible. We live in a very quiet and nice neighbourhood, a 5-minute walk to
all shops & public transport, and very close to Dream World, Movie World, Outback Adventure, Wet & Wild theme
parks.
Out place is 50min from GC Airport, 1 hour and 15 minutes from Brisbane Airport

The space
Our place 2 rooms are good for couples or singles, solo adventures and Business travellers. There is a Double bed in each
room that can fit two people comfortably. There is an overhead fan in each bedroom and with air-con too.

Guest access
All amenities in the house.....

During your stay

Yes, we are available to answer any concerns from our guests and be in touch by phone or email.

Analysis

Short-Term Rental (STR):

Nightly Rate: $48

Cleaning Fee: $100

Service Fee: $100 (assumed)

Long-Term Rental:

Monthly Rent: $1000

Cost Savings for Short Stays: For a short stay of one week (7 nights), the STR cost would be $436 ($48 x 7 + $100
cleaning fee + $100 service fee). In comparison, a month-long stay at the long-term rental rate of $1000 would be
significantly higher at $1000.

Flexibility: Short-term rentals offer flexibility for guests who might be visiting for a brief period, such as tourists
exploring the Gold Coast attractions or business travelers attending short-term assignments.

Affordability for Budget Travelers: The low nightly rate of $48 makes the property an attractive option for budget-
conscious travelers, contributing to its competitiveness in the short-term rental market.

Additional Income Potential: Hosts can potentially earn more through short-term rentals, especially during peak tourist
seasons or events when demand for accommodation is higher.

The short-term rental pricing structure, with its affordable nightly rate and additional fees, positions the property as an
attractive option for travelers seeking cost-effective and flexible accommodation. This approach can be particularly
beneficial for hosts, allowing them to tap into the lucrative short-term rental market and potentially earn more revenue
compared to a fixed monthly rate. The Gold Coast's popularity as a tourist destination further supports the viability of this
pricing strategy, making it a favorable choice for hosts aiming to maximize income through short-term rentals.

Canberra
Canberra stands as a testament to the nation's rich history and cultural significance. This unique urban landscape, adorned
with some of Australia's most iconic historical landmarks, sprawling natural reserves, esteemed universities, and pivotal
government institutions, offers an array of experiences for both leisure and business travelers. This distinctive proposition
has positioned Canberra as a standout performer in the short-term rental (STR) market, demonstrating resilience during
and after the pandemic.

The heartbeat of Australia's governance echoes within the corridors of Canberra, housing numerous government offices,
departments, and agencies. This concentration of governmental activity has translated into a substantial demand for short-
term rental properties. Notably, this demand is closely aligned with a consistent surge in booking requests. Government
officials, diplomats, and contractors, frequenting the city for business purposes, have become key contributors to the
escalating demand for STR accommodations, particularly those offering 2-bedroom or smaller configurations.

The discerning requirements of government officials and business travelers have further shaped Canberra's STR
landscape. A notable trend is the preference for 2-bedroom or smaller accommodations, reflecting the practical needs of
those on official business in the city. This preference has not only fueled the demand for such dwellings but has also led to
a distinctive concentration of these configurations in the STR market, creating a niche that aligns seamlessly with the
city's unique demographic.
Canberra’s vacancy rate decreased for the second month in a row but is almost double that of last year. It is 0.2
percentage points lower than the record high seen in June. The number of vacant rentals fell over the month but is
seeing a significant boost in stock compared to last year. This indicates a continued easing in conditions for tenants.

Case study
Specs
5 guests · 3 bedrooms · 3 beds · 1 bath

Description
I might be old but I am super cute & clean!!

* Fitted out with new ex display suite furniture

* Brand new fitted loo!!
* New Nespresso coffee machine
* New microwave
* Brand new bedding/Manchester
* Carpets only a few years old, clean and modern
* Brand new & fresh curtains
* BBQ, washing machin

Expect:
* Original Yarralumla cottage with not so cute (but clean) lino (who really cares!?)
* original bathroom but squeaky clean!
* Backyard clean and tidy but not a verified kid friendly backyard!

Analysis
Short-Term Rental (STR) Pricing:

Nightly Rate: $160

Cleaning Fee: $150

Service Fee: $100 (Assuming 10% of the nightly rate)

Total Cost per Night: $160 + $150 + $100 = $410

Long-Term Rental (LTR) Pricing:

Monthly Rate: $3000

Short-Term Rental (STR) Revenue:

Assuming an average occupancy rate of 20 nights per month (conservative estimate for a popular property), the monthly
revenue from STR would be 20 nights * $410 = $8200.

Long-Term Rental (LTR) Revenue:

The monthly revenue from LTR is a fixed $3000.

Higher Monthly Revenue:

The STR model yields significantly higher monthly revenue ($8200) compared to the fixed LTR rate of $3000.

Flexibility for Property Owner:

Short-term rentals offer flexibility for the property owner, allowing them to use the property themselves or make
changes to the rental schedule with relative ease.

Opportunity for Dynamic Pricing:

With short-term rentals, hosts can adjust nightly rates based on seasons, local events, or market demand, potentially
maximizing income during peak times.

Quicker Response to Market Changes:

The property owner can adapt quickly to changes in the local rental market, ensuring they are always competitive and
maximizing occupancy rates.

Regional Australia
During the pandemic, people wanted to see more of their own country's landscapes. This led to a rise in domestic tourism,
which was especially good for Regional Australia. Austrade says that there were a huge 66,000 more trips to the
Mornington Peninsula in the June quarter of 2022 than in the same quarter of 2019. The modern traveler's desire for
privacy, space, and comfort, along with a desire to explore new areas, pushed the STR market to new heights in these
lesser-known parts of the country. Counter-urbanization, which is sped up by policies that allow people to work from
home, has caused a big rise in people looking for homes in rural areas. Because of this migration, occupancy rates and
Average Daily Rates (ADRs) have gone up in regional areas.

The desire to get away from city life and the growing appreciation for the freedom of working from home have both
increased the demand for STR properties, making the market in regional Australia more competitive and active. The
tradition of larger format homes is one thing that sets regional Australia apart and helps STRs do well there. Higher ADRs
are naturally drawn to these homes because they have large rooms and a unique charm. Many high-quality hotels aren't
located in these beautiful areas, which makes well-kept and carefully chosen short-term rentals even more popular with
discerning travellers.

In 2022, the STR market in regional Australia did amazingly well. In New South Wales, the Southern Highlands and
Mudgee were two of the best places to visit, with impressive ADRs. During the pandemic, regional areas had high
occupancy rates, especially when international borders were closed and people could travel within the country when
lockdowns weren't in effect. Some occupancy rates have gone down, but places like the Sunshine Coast, Mudgee, and
Batemans Bay are still seeing steady growth and rising ADRs.

Building upon the successes of the past, 2023 has unveiled a new chapter for regional Australia's STR market. While
some areas experienced temporary declines in occupancy rates, resilient destinations such as the Sunshine Coast,
Mudgee, and Batemans Bay have not only weathered the storms but are witnessing a resurgence in growth. These
regions have become epitomes of unwavering appeal, captivating travelers with their distinctive charm and contributing
to a sustained rise in Average Daily Rates.
The Sunshine Coast, with its pristine beaches and vibrant community, stands out as a shining example of resilience and
growth in the regional STR market. Mudgee continues to allure with its rich viticulture and cultural offerings, while
Batemans Bay, nestled on the New South Wales south coast, entices visitors with its coastal beauty and recreational
opportunities. These destinations showcase not only steady growth but also an enhanced allure that transcends the
transient challenges faced by other regions.

One of the noteworthy trends defining the current landscape is the upward trajectory in weekly rents across different
property configurations. Whether it's a 2-bedroom retreat, a spacious 3-bedroom dwelling, standalone houses, or
combined residences, the market in Regional Australia has experienced a steady increase in rental rates throughout the
year. This escalation in rental values not only reflects the growing demand for short-term accommodations but also
underscores the potential for lucrative returns for property investors in the region.
Key Observations
Australia's STR sector is growing for a number of reasons, including low costs, privacy, and plenty of space. This trend is
likely to continue. The need for STRs is likely to grow even more once international travel starts up again.

Along with the large VFR and family group and the return of leisure travel, both domestic and international travellers will
continue to drive growth in the sector.Because of this, the STR sector is getting better faster than the hotel sector after
COVID.More and more people are staying for long periods of time for business reasons.

It looks like MadeComfy is making a strong comeback, as high occupancy rates and higher rental returns show. The
average occupancy rate for all four east capital cities (Sydney, Melbourne, Brisbane, and Canberra) was 77.0%. This is
much higher than the occupancy rate for hotels, which is still below 65.0%.

In Sydney, boroughs and suburbs in the central business district (CBD) and close to the beach, like Elizabeth Bay, Millers
Point, and Bondi Beach, have high occupancy rates all year long. High occupancy rates and higher rental income at
MadeComfy properties in the area show that the economy is getting better.

During the COVID-19 pandemic, Melbourne's STR market went down, but it is now strongly recovering as international
travel and events start up again. South Yarra, St. Kilda, and Fitzroy are some of Melbourne's inner suburbs that are
popular with STR guests and good places for investors to put their money.

Due to its great weather all year and closeness to other interesting places, Brisbane is one of MadeComfy's strongest
markets, meeting a lot of pent-up demand from both inside and outside of Australia. Demand for STR is likely to keep
going up because of infrastructure projects related to the 2032 Olympics. The CBD, South Bank, and Kangaroo Point are
all popular places for STRs.

The Gold Coast is a popular spot for tourists from all over the world. After COVID, demand for STR has recovered well
thanks to its beautiful weather, famous shopping areas, and wide range of entertainment options for all age
groups.There is a lot of demand for STR properties in Canberra because of the government, diplomats, and contractors
who live there. Due to a lot of business travel, two-bedroom apartments are the most popular type in the city.

STR areas in the regions did well during the pandemic because more people travelled within their own country, and
2022 still showed strong performance.Our portfolio of properties has done well, with high ADRs across the board. The
larger properties, like the 6-bedroom ones, have been the standouts.In Australia as a whole, the STR sector is doing very
well, and this growth is likely to continue.