Asian markets are leading the charge, offering big opportunities for investors looking to reap short-term rental returns. And with average annual revenues exceeding $40k in some markets, these emerging markets are quickly becoming appealing new spaces for rental property investors. This story breaks down the most important data on average revenues, daily rates and occupancy rates across specific Asian markets. Beyond that, though, it does provide a glimpse into the current state of short-term rental investments.
In the second-largest market, San Francisco, an average annual revenue of $43,465 is based on an average daily rate of $311.44. Properties in this area enjoy an approximate annual occupancy rate of 58.9%, indicating a steady demand among travelers and tourists. Coupled with strong occupancy tax rates, the combination makes for an attractive investment alternative. Anyone seeking significant financial returns would be hard pressed to find a more irresistible opportunity.
… and in yet another impressive market, where annual revenue averages $44,737. The average daily rate of properties listed here is $248.90 with an annual estimated occupancy rate of about 54%. Despite a lower occupancy compared to some other regions, the relatively high daily rate compensates, resulting in impressive annual returns for property owners.
One midsize market is enjoying a remarkable occupancy rate of 78.2%. It also has a significantly lower average annual revenue ($42,829) and average daily rate ($160.09). High occupancy is an indication of strong, consistent demand. Even at a greatly reduced daily rate, that’s still a boatload of cash heading straight into the pockets of investors.
Another market brings in the mighty average annual revenue of $43,882. Adding fuel to this market’s fire is an ADR of $181.28 and an occupancy rate of about 69.7%. The short-term renters the market does attract, the market welcomes with open arms. It helps maintain competitive pricing, highlighting the ideal mix of rate and occupancy.
The market averages a bit less annual revenue at $35,842. It has an ADR of $140.81 and a stellar 72.6% occupancy rate. While the revenue may be lower than more established markets, high occupancy ensures that the properties are always booked. This predictable demand means that owners can always count on a reliable stream of income.