Adelaide Short Term Rental Market Report 2025

Introduction

Adelaide's short-term rental (STR) market continues to show stable performance, driven by strong seasonality and consistent rental demand. However, revenue growth and regulation challenges present some headwinds for operators.
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Key performance indicators as of early 2025 reflect a mixed but optimistic outlook:

• Annual Revenue: $51.8K (0% YoY change)
• Occupancy Rate: 59% (-4% YoY)
• Average Daily Rate (ADR): $315.91 (+4%)
• Revenue per Available Room (RevPAR): $180.68 (+1%)

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While occupancy has slightly declined, strategic pricing has supported growth in ADR and RevPAR, sustaining stable revenue performance. This report provides an in-depth look at market trends, geographical hotspots, regulatory landscape, and consumer behaviour to inform STR stakeholders.

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Overview

Adelaide’s short-term rental (STR) market is showing resilience and strategic pricing gains, despite seasonal fluctuations and tightening regulations.

Market Size and Growth

• As of 2024, Australia's STR market was valued at AUD 3.4 billion, projected to reach AUD 6.4 billion by 2030 (CAGR 11.5%).
• Adelaide’s STR market reports an average annual revenue of $51.8K per property, with a 59% occupancy rate and ADR of $315.91.
• RevPAR sits at $180.68, supported by steady seasonal performance and event-driven demand.

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Short-term rentals are primarily concentrated in key districts:

• Central Business District (CBD): Encompasses Adelaide (5000), catering to business travellers and city tourists due to proximity to Rundle Mall, Adelaide Central Market, and major transport hubs. High demand for modern apartments and executive suites.
• Coastal Suburbs (Glenelg & Surrounds - 5045): Iconic beachside destination offering vibrant nightlife and family-friendly stays. Includes Glenelg, Glenelg North, South, and East, with strong interest in boutique apartments and holiday homes.
• Premium Coastal Zones (5022): Grange, Henley Beach, and Tennyson offer upscale beachfront homes in quieter environments, attracting affluent travellers seeking relaxed luxury.
• Cultural & Heritage Areas (North Adelaide - 5006): Blend of historic charm and modern appeal with proximity to Adelaide Oval and River Torrens. Popular for boutique guesthouses and serviced apartments.
• Trendy Inner-East (5067): Includes Norwood, Kent Town, and Rose Park, appealing to professionals and short-term relocators with stylish townhouses and boutique Airbnbs.
• Western Coastal Suburbs (5024): West Beach, Fulham Gardens, and Fulham are popular for families due to beach access and closeness to the airport.

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Seasonal Trends

• Peak Demand: December to February, driven by summer holidays, warm weather, and major cultural events like the Adelaide Fringe and WOMADelaide.
• Off-Peak: Winter months (June–August) see reduced bookings due to cooler weather, with ADR and occupancy hitting their lowest points in July and May respectively.
• Shoulder Seasons: Spring and autumn present moderate demand and offer opportunities for rate optimisation and promotional campaigns.

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Adelaide’s STR performance is highly seasonal, but strategic pricing, cultural festivals, and premium beachfront offerings allow operators to maintain steady returns throughout the year.

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Legislation

The short-term rental (STR) regulatory environment in Adelaide is currently managed at the local council level, with growing attention toward compliance and control measures.

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Current Regulations:

• As of July 1, 2024, Adelaide City Council mandates that non-hosted properties rented out for more than 90 days annually be reclassified under the "Commercial – Other" category, incurring higher commercial rates.
• While there is no overarching state-wide licensing system in South Australia, certain councils—like The Barossa Council—require development approval for converting dwellings into tourist accommodation, regardless of guest count.

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Compliance Requirements:

• Property owners must comply with key safety standards, including functional smoke alarms, safe emergency exits, and adherence to fire safety codes.
• Hosts must also maintain adequate insurance covering third-party injury and liability.

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Upcoming Changes:

• Adelaide City Council is considering a formal permit and registration system for STRs, particularly in the CBD and North Adelaide.
• The proposed Short-Term Holiday Rental Accommodation Bill (introduced in 2021) remains under parliamentary review. If passed, it would mandate statewide registration, establish a code of conduct, and introduce penalties for non-compliance.

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These developments reflect a shift toward greater oversight and professionalisation of the STR market in Adelaide. Hosts are encouraged to stay updated and ensure ongoing compliance with emerging regulations.

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Market data

Performance across Adelaide’s suburbs reflects varying levels of demand and pricing success. Key metrics show where STR operators are seeing the strongest returns.

• Highest Annual Revenue: Grange & Henley Beach ($64.7K)
• Highest ADR: Grange & Henley Beach ($395.71)
• Strongest Growth: West Beach & Surrounds (+11% revenue, +12% RevPAR)
• Stable Performer: Adelaide CBD ($51.9K revenue, +3% YoY)
• Under Pressure: Inner-East Suburbs (−4% revenue, −3% RevPAR)

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These results suggest that coastal and premium-lifestyle areas lead in performance, while inner-suburban zones may benefit from targeted marketing and occupancy boosts.

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Key Insights:

• Coastal suburbs outperform in ADR and revenue during summer.
• Glenelg and Henley Beach suburbs benefit from strong holiday demand.
• CBD and North Adelaide show pricing resilience despite mid-year occupancy dips.
• Inner-East and West Beach areas present growth opportunities with targeted marketing and promotions.

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Regional spotlight

The coastal corridor spanning Grange to Tennyson remains one of Adelaide’s most desirable beachside regions for short-term rentals. These suburbs blend relaxed seaside charm with proximity to city attractions, making them highly attractive to both local holidaymakers and interstate visitors. With pristine beaches, local cafés, and scenic walking trails, this area is increasingly favoured by families, couples, and remote workers seeking both tranquillity and convenience.

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The short-term rental market across these suburbs has shown notable growth in demand, particularly during warmer months and key travel periods. High occupancy rates and increased tourism are driving up average daily rates (ADRs), and investors are increasingly targeting these beachside pockets for their consistent performance and year-round appeal.

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Key Highlights (2024 Data):

• ADRs across Grange, Henley Beach, Henley Beach South, and Tennyson averaged $372.9 in 2024, showing consistent demand throughout the year.
• Summer months (December–February) saw ADRs rise significantly, with peak ADRs reaching $458 in December.
• January 2025 saw a new peak of $472, driven by holiday travel and Adelaide’s festival season.
• February 2025 ADRs remained strong at $401, indicating continued interest beyond the holiday period.

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Grange–Tennyson ADRs – Last Quarter 2024 and Early 2025 Year-on-Year

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With high ADRs and a reliable flow of tourists, these beachside suburbs offer promising opportunities for short-term rental investments. Whether you're looking for long-term growth or peak season gains, this stunning stretch of Adelaide's coastline is worth your attention.

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Case Study: Impact of Events on STR Revenue

Major cultural events significantly enhance STR performance:

• Adelaide Fringe Festival (Feb-Mar): ADRs surge to $315+, with RevPAR exceeding $240.
• WOMADelaide (March): Drives early-autumn demand, extending peak season beyond summer.

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These events help stabilise occupancy and rates even in shoulder seasons.

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Conclusion

Adelaide’s short-term rental market continues to demonstrate strong fundamentals despite moderate occupancy dips. Coastal and event-driven destinations such as Glenelg, Grange, and Henley Beach consistently lead in revenue and ADR, benefiting from both lifestyle appeal and strategic pricing.
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The market’s seasonality remains a key characteristic, with summer peaks and winter troughs that can be offset by aligning pricing strategies with local events and travel trends. Meanwhile, regulation is evolving, and hosts should stay informed to ensure full compliance and avoid penalties.
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For investors and operators, opportunities remain robust—particularly in high-performing coastal areas and neighbourhoods with strong tourism demand. With a data-driven approach and agile pricing tactics, STR stakeholders can position themselves for sustainable growth in Adelaide’s dynamic rental landscape.

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