Sydney Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in New South Wales, Australia
Is Airbnb profitable in Sydney in 2025? Explore comprehensive Airbnb analytics for Sydney, New South Wales, Australia to uncover income potential. This 2025 STR market report for Sydney, based on AirROI data from June 2024 to May 2025, reveals key trends in the bustling market of 12,920 active listings.
Whether you're considering an Airbnb investment in Sydney, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Sydney Airbnb data is crucial. Navigating the high regulation landscape is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Sydney Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Sydney (2025)
Understanding the monthly revenue variations for Airbnb listings in Sydney is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Sydney is typically December, while June often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Sydney across different performance tiers:
- Best-in-class properties (Top 10%) achieve $7,123+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $4,594 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,744 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,355, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Sydney
Sydney Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Sydney STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Februarysees the highest demand (peak season occupancy), while June experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Sydney:
- Best-in-class properties (Top 10%) achieve 89%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 77% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 55%.
- Entry-level properties (Bottom 25%) average 27% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Sydney
Average Daily Rate (ADR) Airbnb Trends in Sydney (2025)
Effective short term rental pricing strategy in Sydney involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Sydney typically peaks in January and dips lowest during August. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $455+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $260 or more.
- Typical properties (Median) charge around $155 per night.
- Entry-level properties (Bottom 25%) earn around $91 per night.
Average Daily Rate (ADR) Trend by Month in Sydney
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Airbnb Seasonality Analysis & Trends in Sydney (2025)
Peak Season (December, January, March)
- Revenue averages $4,439 per month
- Occupancy rates average 56.2%
- Daily rates average $254
Shoulder Season
- Revenue averages $3,480 per month
- Occupancy maintains around 54.8%
- Daily rates hold near $223
Low Season (May, June, July)
- Revenue drops to average $2,673 per month
- Occupancy decreases to average 43.7%
- Daily rates adjust to average $218
Seasonality Insights for Sydney
- The Airbnb seasonality in Sydney shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Sydney's highest earning potential, with monthly revenues capable of climbing to $4,616, occupancy reaching a high of 59.2%, and ADRs peaking at $285.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $2,372, occupancy could drop to 41.5%, and ADRs may adjust down to $199.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Sydney.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Sydney seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Sydney (2025)
Exploring the top neighborhoods for short-term rentals in Sydney? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Surry Hills | Vibrant inner-city neighborhood known for its trendy cafes, restaurants, and nightlife. Close to the CBD, it attracts young professionals and tourists looking for an urban experience. | Crown Street eateries, Surry Hills Markets, Bretford Park, The Clock Hotel, The Belvedere |
| Bondi Beach | Famous beach destination with a laid-back vibe and stunning coastal views. Popular with tourists for its beach culture and outdoor activities. | Bondi Beach, Bondi to Coogee Coastal Walk, Bondi Icebergs Club, Bondi Markets, North Bondi Surf Life Saving Club |
| Newtown | Bohemian suburb known for its eclectic culture, vintage shops, and vibrant street art. Attracts a diverse crowd including students and creatives. | King Street shops, Newtown Festival, Enmore Theatre, Camperdown Cemetery, Carriageworks |
| Darling Harbour | Popular waterfront area with attractions, shopping, and dining. Great for families and tourists looking for entertainment and leisure activities. | SEA LIFE Sydney Aquarium, Wild Life Sydney Zoo, Darling Quarter, Australian National Maritime Museum, Harbourside Shopping Centre |
| The Rocks | Historic area with cobblestone streets, museums, and markets. Close to the Sydney Harbour, it's a favorite among tourists for its charm and history. | Sydney Opera House, Sydney Harbour Bridge, The Rocks Market, Museum of Contemporary Art, Cadman's Cottage |
| Manly | Coastal suburb known for its stunning beaches and relaxed atmosphere. A popular getaway spot for both locals and tourists looking for sun and sea. | Manly Beach, Shelly Beach, Manly Corso, Manly Sea Life Sanctuary, North Head Sanctuary |
| Chippendale | Emerging area with a vibrant dining scene and creative spaces. Close to universities, it's appealing to both students and professionals. | Central Park Mall, White Rabbit Gallery, Chippendale Green, Sydney Brewery, The Old Rum Store |
| Potts Point | Trendy neighborhood with a mix of historical buildings and modern apartments. Close to the Sydney CBD, known for its dining and nightlife. | Macleay Street eateries, Elizabeth Bay, Kings Cross, Woolloomooloo Bay, The Art Gallery of NSW |
Understanding Airbnb License Requirements & STR Laws in Sydney (2025)
Yes, Sydney, New South Wales, Australia enforces high STR regulations. Obtaining a license and ensuring compliance is almost certainly required according to current 2025 STR laws. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Sydney to ensure full compliance before hosting.
(Source: AirROI data, 2025, based on 72% licensed listings)
Top Performing Airbnb Properties in Sydney (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Sydneybased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
HourGlass- Absolute Beachfront
Entire Place • 6 bedrooms
OMG Sub-Penthouse + Pool + Bridge Views
Entire Place • 3 bedrooms
Waterfront Oasis | Infinity Pool | Gardens | Sauna
Entire Place • 6 bedrooms
Luxe Retreat - Pool, Spa, Sauna, Gym & Cinema
Entire Place • 6 bedrooms
The Bower House Manly - 4 Bedroom Entire House
Entire Place • 4 bedrooms
Casa Del Palmbu
Entire Place • 5 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Sydney (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Sydney based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| MadeComfy | 181 | $6,967,461 | 6578 | 4.38/5.0 |
| L'Abode Accommodation Speciali | 97 | $5,782,038 | 1598 | 4.69/5.0 |
| Contemporary Hotels | 38 | $3,210,062 | 224 | 4.85/5.0 |
| Hotelesque | 79 | $2,984,060 | 1259 | 4.82/5.0 |
| Milan | 51 | $2,724,152 | 3944 | 4.64/5.0 |
| Annie | 51 | $2,723,523 | 2365 | 4.52/5.0 |
| Sam | 24 | $2,677,929 | 503 | 4.84/5.0 |
| Dom | 39 | $2,650,719 | 3060 | 4.75/5.0 |
| Urban Stays Australia | 58 | $2,462,911 | 2456 | 4.74/5.0 |
| Gabriel HH | 54 | $2,410,242 | 2961 | 4.70/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Sydney.
Dive Deeper: Advanced Sydney STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Sydney. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsSydney Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Sydney
- The Sydney Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 83.5% of the 12,920 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Sydney, Apartment/Condo properties are the most common (53.7%), reflecting the local real estate landscape.
- Houses represent a significant 35.8% portion, catering likely to families or larger groups.
- The presence of 5.9% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like others, outdoor/unique, unique stays (combined 4.6%) offer potential for unique stay experiences.
Sydney Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Sydney
- The dominant room capacity in Sydney is 1 bedroom listings, making up 33.7% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 60.8% of the active Airbnb listings in Sydney, indicating a high concentration in these sizes.
- A significant 24.0% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Sydney.
Sydney Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Sydney
- The most common guest capacity trend in Sydney vacation rentals is listings accommodating 2 guests (27.1%). This suggests the primary traveler segment is likely couples or solo travelers.
- Properties designed for 2 guests and 4 guests dominate the Sydney STR market, accounting for 49.2% of listings.
- 26.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Sydney.
- On average, properties in Sydney are equipped to host 3.8 guests.
Sydney Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Sydney
- The most common availability pattern in Sydney falls within the 271-366 days range, representing 35.8% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 66.1% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Sydney (30.5%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 35.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Sydney Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
1916 listings
15.4% of total
2 Nights
2506 listings
20.2% of total
3 Nights
824 listings
6.6% of total
4-6 Nights
1376 listings
11.1% of total
7-29 Nights
1291 listings
10.4% of total
30+ Nights
4518 listings
36.3% of total
Key Insights
- The most prevalent minimum stay requirement in Sydney is 30+ Nights, adopted by 36.3% of listings. This highlights the market's preference for longer commitments.
- A significant segment (36.3%) caters to monthly stays (30+ nights) in Sydney, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 30+ Nights minimum stay, as 36.3% of Sydney hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 15.4% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 36.3% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Sydney.
Sydney Airbnb Cancellation Policy Trends Analysis (2025)
Super Strict 60 Days
242 listings
2.1% of total
Super Strict 30 Days
150 listings
1.3% of total
Flexible
1513 listings
13% of total
Moderate
2701 listings
23.2% of total
Firm
2677 listings
23% of total
Strict
4371 listings
37.5% of total
Cancellation Policy Insights for Sydney
- The prevailing Airbnb cancellation policy trend in Sydney is Strict, used by 37.5% of listings.
- A majority (60.5%) of hosts in Sydney utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.
Recommendations for Hosts
- Consider adopting a Strict policy to align with the 37.5% market standard in Sydney.
- With 37.5% using Strict terms, this is a viable option in Sydney, particularly for high-value properties or during peak demand periods.
- Regularly review your cancellation policy against competitors and market demand shifts in Sydney.
Sydney STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Sydney
- The overall average booking lead time for vacation rentals in Sydney is 47 days.
- Guests book furthest in advance for stays during December (average 65 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in July (average 28 days), indicating more last-minute travel plans during this time.
- Seasonally, Winter (58 days avg.) sees the longest lead times, while Summer (35 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (47 days) as a baseline for your pricing and availability strategy in Sydney.
- For December stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 65 days out to capitalize on advance planning.
- Target marketing efforts for the Winter season well in advance (at least 58 days) to capture early planners.
- Monitor your own booking lead times against these Sydney averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Sydney (2025)
Amenity Prevalence
Amenity Insights for Sydney
- Essential amenities in Sydney that guests expect include: Wifi, Smoke alarm. Lacking these (any) could significantly impact bookings.
- Popular amenities like Kitchen, TV, Hot water are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Sydney: Wifi, Smoke alarm.
- Prioritize adding missing essentials: Wifi, Smoke alarm.
- Consider adding popular differentiators like Kitchen or TV to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Sydney to stay competitive.
Sydney Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Sydney
- The typical guest profile for Airbnb in Sydney consists of a mix of domestic (63%) and international guests, often arriving from nearby Sydney, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Chinese.
- Domestic travelers account for 63.0% of guests.
- Key international markets include Australia (63%) and United States (8.3%).
- Top languages spoken are English (61%) followed by Chinese (6%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Target domestic marketing efforts towards travelers from Sydney and Melbourne.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Sydney Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Penrose | 12 | $6,289 | $620.93 | 41% |
| Berry | 118 | $5,654 | $557.39 | 41% |
| Jaspers Brush | 13 | $5,268 | $514.74 | 38% |
| Burrawang | 11 | $5,048 | $551.43 | 40% |
| Bombo | 10 | $4,796 | $588.27 | 42% |
| Gerringong | 120 | $4,402 | $508.59 | 37% |
| Green Point | 16 | $4,336 | $371.72 | 42% |
| Exeter | 33 | $4,183 | $521.75 | 37% |
| The Council of the Municipality of Kiama | 125 | $4,145 | $432.53 | 42% |
| Berrima | 49 | $4,130 | $448.16 | 41% |