Queenstown Short-Term Rental (Airbnb) Market
Queenstown TAS Investment Analysis
BUY
— $213,000 median with 16.5%/yr growth over 5 years.
THE MARKET
Queenstown has compounded at 16.5%/yr over 5 years — a house that cost $99,254 in 2021 is worth $213,000 today. Properties are sitting on market for 88 days (buyers have negotiating room). At the same growth rate, today's median reaches $457,098 by 2031.
- **Median house:** $213,000 | **Units:** $134,130 - **Gross yield:** 7.2% | **Net yield:** 5.7% - **5yr price CAGR:** 16.5%/yr | **3yr forecast:** 18.5%/yr - **Population:** 14,804 | **Owner-occupier rate:** 41% | **Affluence:** Low
- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- **Vacancy:** 2.4% (improving) | **Rental demand:** High - **Median weekly rent:** $295/wk | **Days on market:** 88 (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:** $15,340/yr (+171% 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 Queenstown maintains 3%+ annual growth and vacancy stays below 1.7%, median prices could reach $244,950 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Queenstown pull back 10-15% from $213,000, with vacancy rising to 4.3% and rental yields softening as tenants gain leverage.
KEY RISKS
- No significant risk factors identified for this suburb
COMPARABLE MARKETS
- **Oatlands** (TAS): $245,326 median, 20.1% yield, 6.7% 1yr growth - **Port Arthur** (TAS): $222,471 median, 24.5% yield, -0.7% 1yr growth - **Ross** (TAS): $250,510 median, 10.0% yield, 6.1% 1yr growth
THE PLAY
Queenstown presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 7.2% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.
- Entry range: $191,700 – $234,300 - Minimum gross yield to target: 7.5% - 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.