24 Continuing an upward trend reflecting both increased demand and a maturing industry, the short-term rental (STR) market in Australia has started the year with strong momentum. Listings on platforms like Airbnb have grown by 11% year-over-year, with total listings rising from 121,000 in 2021 to 132,000 in 2024. Australia now ranks 10th globally in terms of short-term rental listings, supported by a 25% increase in listings year-over-year, indicating a vibrant and competitive landscape for both investors and travellers. This growth is unfolding alongside significant regulatory change. From January 1st 2025, Victoria introduced a 7.5% levy on all STR bookings, a move that has already started to dampen new listings as owners reassess the financial return. In New South Wales, a 180-night cap on non-hosted properties has been implemented, while Byron Bay has imposed a strict 60-night annual limit outside of a small exemption zone. These changes are reflective of broader political and community pressures to manage housing availability, especially in tourismheavy areas. Despite these challenges, demand for short-term stays remains strong, though we are seeing shifts in guest behaviour. There is a noticeable trend toward shorter booking windows and reduced length of stay, driven in part by high interest rates and cost-of-living pressures. Travellers are booking closer to their travel dates and staying for shorter periods, but interestingly, they are still opting for premium, high-quality accommodations when they do travel. This shift underscores the continued resilience of the luxury segment, particularly among leisure travellers. A defining feature of the current market is the rise of the eco-conscious traveller. Demand is growing for properties that not only provide comfort and aesthetic appeal but also align with sustainable values. Energy-efficient appliances, solar power and environmentally friendly construction methods are increasingly seen not just as desirable but as differentiators. Guests are also paying attention to operational practices. Properties that minimise printing, use eco-aware signage and Short term rental market report. Lantern Apartments, Thredbo, NSW Australia’s short-term rental market continues to grow, despite tightening regulations and shifting traveller behaviours.
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