Southern Highlands

As of May 2026, Bowral, Mittagong, Kiama have 888 active Airbnb and VRBO listings. This represents a 5% decrease from the previous year.

The average Airbnb or VRBO in Southern Highlands generates A$64K per year. High-performing properties earn A$140K/year, while low-performing properties earn A$30K/year. The stark disparity between top and bottom performers suggests that revenue outcomes are highly sensitive to specific asset-level positioning despite a contracting supply environment.

Airbnb and VRBO can be profitable in Southern Highlands. Average annual revenue is A$64K with 34% occupancy. High-performing properties earn up to A$140K/year. The wide revenue variance indicates that market saturation levels vary significantly by property type, allowing elite assets to maintain strong earnings despite a broader downward trend in revenue.

The average occupancy rate for Airbnbs and VRBOs in Southern Highlands is 34%. This occupancy level, combined with an average nightly rate of A$478, results in a RevPAR (revenue per available room) of A$129 per day.

4+ bedroom properties demonstrate the strongest performance in Southern Highlands, with annual revenue of A$98K. These properties balance operating costs and rental demand most effectively in the Southern Highlands market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Southern Highlands area. Bowral: Moderate. Part of Southern Highlands Council requiring development consent for STRs, 90-day non-hosted limit. Code of Conduct mandatory. Moderate enforcement with complaint-based action. Mittagong: Moderate. Same Southern Highlands Council rules as Bowral - development consent needed, 90-day cap for non-hosted, Code of Conduct required. Enforcement mainly complaint-driven. Kiama: Moderate. Registration required, 180-day annual cap for non-hosted rentals, Code of Conduct compliance. Moderate enforcement through complaints and audits. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Southern Highlands Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 5% year-over-year, while RevPAR has decreased 15%. This indicates balanced supply-demand dynamics. This simultaneous contraction in both listing count and revenue suggests a market correction where weaker inventory is being removed, potentially stabilizing future yield potential.

Launch around January, 2-3 months before peak winter season (April peaks). This pre-peak timing lets you build reviews when competition is -4% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-August) when gaining traction is harder.

The most common amenities in Southern Highlands listings include: Kitchen (93%), Tv (89%), Air Conditioning (78%), Heating (76%), Private Yard (68%). Amenities that boost revenue the most include Pool, Hot Tub, Washing Machine, with Pool properties earning approximately 136% more (A$188K/year vs A$80K/year).

Monthly estimated revenue per listing in Southern Highlands over the last 12 months: May: A$3K, June: A$4K, July: A$4K, August: A$3K, September: A$3K, October: A$4K, November: A$3K, December: A$5K, January: A$4K, February: A$3K, March: A$4K, April: A$6K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Southern Highlands is A$478, down 3% year-over-year. By property size: 1-bedroom properties average A$257/night, 2-bedroom properties average A$337/night, 3-bedroom properties average A$419/night, 4+ bedroom properties average A$903/night. Rates peak in April and are lowest in August.

Guests in Southern Highlands book an average of 35 days in advance, down 20% from last year. By property size: 1-bedroom: 30 days, 2-bedroom: 33 days, 3-bedroom: 34 days, 4+ bedroom: 41 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Southern Highlands Airbnb and VRBO market has seen the following changes: supply declined 5%, revenue per listing decreased 15%, occupancy fell 11%, average nightly rates decreased 3%, and lead time decreased 20%. These broader metrics reflect a softening demand landscape, forcing shorter booking windows and lower pricing pressure across the board.

In Southern Highlands, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Monday. Weekends show 88% higher occupancy than weekdays.