Most first-time short-term rental investors start with the wrong question. They ask which suburb earns the most. The better question is which suburb, and which building, lets you earn it reliably once rules, strata and costs are counted.
Brisbane remains one of the country’s more compelling short-stay markets: tight rental vacancy, strong interstate migration, a steady stream of corporate and hospital visitors, and the 2032 Olympics pulling infrastructure into the inner city. Here is how we would think about where to buy.
Start with the rules, because they have moved
In December 2025, Brisbane City Council proposed a permit system for short-stay accommodation, with development approval expected for houses in low-density zones and fines above $140,000 for non-compliance. Nearly 500 suburban homes were flagged.
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In May 2026 the Lord Mayor announced the permit scheme would not proceed at this time. Existing local laws continue to apply, and the council has said it will work with booking platforms on problem operators. This is a pause, not a guarantee, so treat it as a live risk when you model any purchase. |
Two practical takeaways. First, apartments in high-density inner-city buildings carry far less planning risk than suburban houses. Second, your body corporate by-laws are the gate that matters most for apartments. A building that restricts short stays cannot be rescued by any council position. Always read the by-laws and confirm the building’s short-stay status before you sign.
The inner-city shortlist
These precincts combine walkability, corporate and event demand, and apartment stock built for short stays. The figures below are indicative ranges for a professionally managed two-bedroom apartment, drawn from published Brisbane market estimates. Treat them as a starting point for your own numbers, not a forecast.
| Precinct | Occupancy | Nightly rate (2-bed) | Guest profile |
| South Brisbane / West End | 85-90% | $230-260 | Culture, families, corporate |
| Fortitude Valley | 80-90% | $240-270 | Events, groups, nightlife |
| New Farm / Newstead / Teneriffe | 75-85% | $300-330 | Executives, special occasions |
| Kangaroo Point / CBD | 80-85% | $220-250 | Business travel, conferences |
| Woolloongabba / Coorparoo | 75-82% | $220-250 | Stadium, Mater, Olympic build |
| Bowen Hills / Spring Hill | 75-85% | $210-250 | Showgrounds, hospitals |
Citywide average occupancy sits closer to 60-65%. The gap between that number and the table is largely the difference between average and well-run, well-located stock. Event weeks can lift nightly rates sharply, but do not build your model on them.
Valley or South Brisbane? The Valley tends to win on rate and skews to younger groups. South Brisbane offers a broader guest mix and steadier midweek and family bookings. If you want fewer party-related headaches, that mix matters as much as the rate.
The long game. Woolloongabba and Bowen Hills are the Olympic and Cross River Rail plays. Expect capital growth to matter more than day-one income there, with event-driven demand building toward 2031-2033.
Six principles for choosing the asset
- 1. Buy the building, not just the unit. Confirm short-stay approval, by-laws and levies first. Strata rules can end a deal.
- 2. Prioritise walkability. Properties near transport, dining and entertainment consistently attract better rates and reviews.
- 3. Match the precinct to the guest. Universities and hospitals in St Lucia, Kelvin Grove and Herston bring visiting academics, clinicians and patient families through the year.
- 4. Decide between yield and growth. Premium riverside suburbs command the top rates. Emerging pockets often offer more growth than income. Know which one you are buying.
- 5. Pressure-test compliance. Even on a paused scheme, assume you will need insurance, house rules and a reachable 24/7 contact.
- 6. Plan the operation before settlement. Pricing, guest support, cleaning and linen are where returns are won or lost.
Gross is not net: a worked example
A headline income figure is revenue, not profit. Here is a simple illustration using mid-range assumptions for a well-located two-bedroom apartment.
| Line | Illustration |
| Nightly rate x occupancy | $240 x 78% |
| Annual gross revenue (365 nights) | ~$68,300 |
| Less management at 20% | ~($13,700) |
| Left before property costs | ~$54,600 |
From that last line come strata levies, council rates, insurance, utilities, consumables, furniture replacement and your finance costs. Run your actual building through the same table before you commit. This is also why a longer-term rental can still win on certain properties: the short-stay premium is real, but it narrows once every cost is on the page.
Before you make an offer
- Read the by-laws and confirm short stays are permitted in the building.
- Check the current council position and the property’s zoning.
- Ask for the building’s actual short-stay history, not the agent’s estimate.
- Model three cases: conservative, expected and event-light.
- Stress-test the mortgage at a higher rate and lower occupancy.
- Decide who runs it: you, a co-host or a full manager.
| Thinking of buying a short-term rental?
We run the numbers on the specific building with you, before you buy, including net returns and compliance risk. No generic averages. mahendra@makuliving.com | Maku Living, Brisbane |