The Letto Property Group STR Performance Index

In an increasingly complex and dynamic Australian property landscape, the ability for astute investors to identify and leverage high - performing markets is paramount. Letto Property Group is pleased to introduce our proprietary benchmark study, the Q1 2026 Short - Term Rental Performance Index. This inaugural report provides a detailed analysis of the short - term rental (STR) sector across three of Australia’s most significant eastern seaboard markets: Sydney, Brisbane, and the Gold Coast. In a climate of shifting housing values and evolving travel behaviours, the short - term rental market presents both unique opportunities and challenges. Drawing on our deep market intelligence and proprietary data, this index offers a comprehensive perspective on the key performance indicators shaping investment returns, providing a crucial tool for navigating the current economic environment.

Sydney: A Story of Enduring Stability and High Demand

Sydney continues to affirm its status as a global city, with a robust and mature short - term rental market that demonstrates remarkable resilience. Our analysis for the first quarter of 2026 reveals a market characterised by consistently high demand and premium pricing. With a substantial inventory of 11,435 active listings, the city maintains a strong 79% occupancy rate, a figure indicative of its deep and unwavering appeal. This level of demand underpins an impressive median annual revenue of $78,000 per property and a formidable average daily rate (ADR) of $399, the highest of the three cities analysed. These figures underscore the city's enduring allure for both domestic and international visitors, cementing its position as a blue - chip location for STR investment.

When contextualised with broader property market trends, the performance of Sydney's STR sector is particularly noteworthy. According to the latest CoreLogic/Cotality Home Value Index from February 2026, the broader Sydney property market has experienced a period of relative stability, with a slight 0.1% contraction over the quarter but a solid 6.0% growth year - on - year [1]. This stability comes at a high entry point, with a median dwelling value of $1,296,039. As noted by Cotality Research Director Tim Lawless, "The clear slowdown in housing conditions across Sydney... could signal an easing in growth conditions elsewhere" [1]. Despite this cooling, the consistent and high-yielding revenue generated from the STR sector provides a compelling alternative for property owners. The data suggests that while the capital investment required is significant, Sydney remains a well - positioned market for generating strong, predictable rental yields that can effectively service high - value assets.

Brisbane: An Emerging Powerhouse with Strong Growth Potential

Brisbane's short - term rental market is on a significant upward trajectory, mirroring the city's broader economic and demographic boom. While its occupancy rate of 68% is more moderate compared to its southern counterparts, the market is delivering a healthy median revenue of $70,589 per annum. The average daily rate of $285 indicates a market that, while not yet at the premium levels of Sydney, offers accessible value for visitors and a solid, rapidly growing return for property investors. The growth narrative for Brisbane is arguably one of the most compelling in the country.

The city’s property market has been a national outperformer, with the CoreLogic/Cotality data revealing a remarkable 17.3% annual growth in home values and a 4.8% increase in the last quarter alone [1]. This has propelled Brisbane’s median property value to $1,080,538. This growth is occurring within a supply - constrained environment; property listings in Brisbane are currently 31% below the five - year average [1]. This supply and demand imbalance is a critical factor for investors, as it suggests that both property values and rental yields have significant room for further appreciation. The combination of rapidly appreciating asset values and a burgeoning STR market presents a powerful dual opportunity for capital growth and rental income. As Brisbane continues its transformation into a global city ahead of the 2032 Olympic Games, we anticipate a continued strengthening of its STR performance metrics.

Gold Coast: The Nation's Highest - Yielding Market

The Gold Coast has unequivocally emerged as the highest - yielding short - term rental market in Australia for Q1 2026. This premier tourist destination is not just meeting but substantially exceeding expectations, boasting a median revenue of $92,000 per year, a figure that comfortably outperforms both Sydney and Brisbane. The market is expanding at a ferocious pace, with active listings growing from 6,109 to an anticipated 7,400 in the near term. Occupancy is on par with Sydney at a robust 79%, and the average daily rate is strong, fluctuating in a healthy range between $320 and $381.

This exceptional performance is buoyed by a confluence of powerful factors. The Gold Coast's property market has been white - hot, with prices jumping an astonishing 80% in just five years [1]. The city’s population is surging, likely surpassing 700,000 in 2025, and its reputation as Australia’s number one domestic holiday spot and fastest - growing convention destination provides a resilient and ever - expanding demand base [1]. Recent data from Webjet has shown a 35% year - on - year increase in bookings to the Gold Coast, as travellers pivot towards domestic destinations in response to global instability [1]. For property investors, the Gold Coast represents a market that is not only delivering the highest returns in the present but is also underpinned by powerful, long - term fundamentals that point to sustained future growth.

Comparative Performance Analysis

To provide a clear overview of the relative strengths of each market, Letto Property Group has compiled the following performance comparison table. The data clearly illustrates the Gold Coast's leadership in revenue generation, while Sydney commands the highest premium on a nightly basis, and Brisbane shows the most aggressive property value appreciation.

Source: Letto Property Group Proprietary Data; CoreLogic/Cotality [1]

This analysis reveals distinct profiles for each city. The Gold Coast is the clear leader for investors prioritising immediate cash flow and yield. Sydney, with its high ADR, is ideal for owners of premium assets in a stable, mature market. Brisbane offers a balanced proposition, combining solid yields with the highest potential for near - term capital growth, making it an attractive option for investors with a strategic, longer - term horizon.

Conclusion: Navigating Opportunity in 2026

The Letto Property Group Q1 2026 Short - Term Rental Performance Index reveals a landscape of diverse and compelling opportunities across Australia's eastern seaboard. The Gold Coast has firmly established itself as the standout market for yield, driven by an unstoppable combination of tourism, population growth, and lifestyle appeal. Sydney remains a bastion of stability and premium returns, offering a safe harbour for capital in uncertain times. Meanwhile, Brisbane presents a powerful growth story, promising significant upside for investors positioned to capitalise on its rapid development. As the Australian property market continues to evolve in response to economic pressures and shifting consumer behaviours, our proprietary analysis demonstrates that the short - term rental sector offers significant potential for generating superior returns. Letto Property Group remains committed to providing the market intelligence and strategic insights necessary for our clients to navigate this dynamic environment with expertise and confidence.

References

[1] Letto Property Group 2026, Consolidated Research Brief, internal document, March. Sydney, NSW.