Franklin Short-Term Rental (Airbnb) Market
Franklin TAS Investment Analysis
HOLD
— 3.2% gross yield on a $738,000 median.
THE MARKET
Franklin has compounded at 3.3%/yr over 5 years — a house that cost $627,415 in 2021 is worth $738,000 today. Properties are sitting on market for 68 days (buyers have negotiating room). At the same growth rate, today's median reaches $868,076 by 2031.
- **Median house:** $738,000 | **Units:** $116,534 - **Gross yield:** 3.2% | **Net yield:** 1.7% - **5yr price CAGR:** 3.3%/yr | **3yr forecast:** 3.7%/yr - **Population:** 8,908 | **Owner-occupier rate:** 36% | **Affluence:** Average
- **Supply pipeline:** Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- **Vacancy:** 2.8% (stable) | **Rental demand:** Moderate - **Median weekly rent:** $450/wk | **Days on market:** 68 (worsening) - Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- **Median nightly rate:** $175/night | **Occupancy:** 65% - **Estimated annual STR gross:** ~$41,519/yr - **vs long-term rent:** $23,400/yr (+77% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Franklin maintains 3%+ annual growth and vacancy stays below 2.0%, median prices could reach $848,700 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Franklin pull back 10-15% from $738,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.
KEY RISKS
- No significant risk factors identified for this suburb
COMPARABLE MARKETS
- **Austin Ferry** (TAS): $638,011 median, 4.3% yield, 8.7% 1yr growth - **Bellerive** (TAS): $900,000 median, 3.5% yield, 8.8% 1yr growth - **Bicheno** (TAS): $810,000 median, 2.5% yield, 17.0% 1yr growth
THE PLAY
Franklin offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.
- Entry range: $664,200 – $811,800 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market falling below 35
This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.