The Australian Property Report July - December 2025 25 Coolum Beach, QLD Disclaimer: Whilst all care has been taken to ensure accuracy in the preparation of the particulars herein, no warranty can be given, and interested parties must rely on their own enquiries. support local sustainable initiatives are gaining a reputational and competitive advantage. Flexible cancellation policies and seamless check-in experiences are no longer perks; they are fast becoming standard expectations. From an investment perspective, certain regions continue to outperform. Sydney, Melbourne, the Gold Coast and the Sunshine Coast are maintaining strong occupancy rates, with Sydney averaging 77% and the Gold Coast at around 80%. These markets, especially beachside and inner-city locations, remain reliable performers. At the same time, more investors are turning their attention to emerging regions like Perth, Fremantle and Hobart, where occupancy rates and the number of listings are both on the rise, offering new opportunities for early movers. Still, parts of the markets are seeing the impact of new regulations. Byron Bay has seen a marked decline in occupancy, now sitting at 66%, largely due to its 60-night cap. Properties in the small exemption zone, however, continue to perform exceptionally well with 83%+ occupancy. Noosa, once one of the top performers, is also seeing signs of market saturation. A surge in listings has diluted demand, reducing occupancy from over 81% to around 74% and putting downward pressure on average daily rates, particularly outside peak seasons. The ultra-luxury market in these regions continues to be an exception, holding steady despite broader declines. Throughout these changes, the role of advocacy has grown in importance. The Australia & New Zealand Short Term Rental Association (ASTRA) has stepped up as a critical voice for the industry, working to negotiate fair regulation and offer guidance to operators. Their engagement with local and national governments has helped balance the interests of communities with those of property owners and guests, though challenges remain as more jurisdictions consider tighter controls on STR activity. Looking ahead, competition is expected to intensify, particularly in high-growth and emerging markets. For operators and investors, this will require a more refined approach to pricing, guest experience and differentiation. From a traveller’s perspective, this competition translates into more choice, better value and an expanding range of accommodation styles and experiences. In a market that is simultaneously expanding and consolidating, success will come to those who can adapt. (*data Airbtics, AirDNA)
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