Which NSW suburbs and price-brackets offer the best returns on Airbnb?

As Airbnb becomes more widely used, considering the potential benefits of renting a spare room through the sharing-economy platform, seems more and more like a good idea... This article considers the Airbnb "index scores" (as explained below) for different individual suburbs, and different groups of suburbs organised into price-brackets, to show variation across the state in how returns from short-term renting compare with property sales prices.

The index score for a suburb, calculated using ShareCover's Stacked Up app, expresses a comparison between the estimated monthly potential income from renting on Airbnb (based on a private room for 2 guests) and the median sales price for unit-type properties in the area. Index scores are ranked within the range of 1-100 for suburbs across NSW. Read more about the Stacked Up App 'index score'.

As was shown in a previous blogpost, non-Sydney suburbs show consistently higher index scores, and this generally correlates with those suburbs having lower median sales prices for unit properties. Furthermore, as can be seen in the bar chart below, the average index score for suburbs with median unit prices at the lower-end of the scale are much higher than those that are more expensive. Here's a chart to illustrate.

 

 

We've also compiled 5 lists of the top 5 suburbs in NSW in terms of their Airbnb private room index score. The results may surprise you! And if you're interested by South Tamworth's top-ranking index score (which happens to be the highest in the state of NSW), you can read more about it in a blogpost here.

Of suburbs where the median unit price is under $500,000, the top-ranking suburbs by index score are:

  1. South Tamworth
  2. Cowra
  3. East Tamworth
  4. Jindabyne
  5. Boolaroo

Of suburbs where the median unit price is between $500,000 and $750,000, the top-ranking suburbs by index score are:

  1. Booker Bay
  2. Leura
  3. Huskisson
  4. Soldiers Point
  5. Magenta

Of suburbs where the median unit price is between $750,000 and $1,000,000, the top-ranking suburbs by index score are:

  1. Byron Bay
  2. Avalon Beach
  3. Avoca Beach
  4. Sydney
  5. Blue Bay

Of suburbs where the median unit price is between $1,000,000 and $1,500,000, the top-ranking suburbs by index score are:

  1. Palm Beach
  2. Pyrmont
  3. Gymea Bay
  4. Bondi Beach
  5. Woolloomooloo

Of suburbs where the median unit price is over $1,500,000, the top-ranking suburbs by index score are:

  1. Huntleys Cove
  2. Seaforth
  3. The Rocks
  4. Milsons Point
  5. Dover Heights

 

Click here to have a go at using the Stacked Up App yourself!

 
Read the Stacked Up App Disclaimer

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