April 2025 Market Update: Regional Strength Holds While Cities Stumble - Adelaide the Outlier

As we head through April 2025, we are seeing clear divergence between city and regional Airbnb markets across Australia. From our perspective managing properties in Agnes Water, Port Lincoln, and Adelaide, the pattern is playing out in real time.

The big picture: regional areas are performing well, while most capital cities continue to underperform. But as always, local context matters and one event can make all the difference. Here is how things shaping up on the ground.

Agnes Water: Holding Strong on Holiday Demand

Agnes Water continues to show resilience. April started strong with school holidays bringing in family groups and domestic travelers from Brisbane and surrounds. The regional appeal of Agnes water uncrowded beaches, a laid-back vibe, and proximity to nature continues to resonate with travellers looking to escape the city.

Occupancy across our portfolio has held solid week-on-week, with an average nightly rate above the March baseline. We have noticed guests booking slightly closer to their travel dates than usual, with a current average booking window of just over 20 days. That lines up with broader market data and suggests travellers are still keen but committing later.

One challenge in Agnes Water has been the tightening of guest budgets. While demand is up, we are seeing some price sensitivity. Properties that are well-presented and priced competitively are booking first. Listings that have not adapted to shifting guest expectations - whether that’s in pricing, photography, or amenities are being overlooked.

Port Lincoln: Seasonal Lift and Consistent Performance

Port Lincoln is also seeing solid April performance, especially on weekends. While it does not benefit from large-scale events or major holiday crowds in quite the same way as other markets, it has built a reputation as a reliable destination for nature lovers, fishing trips, and domestic road trippers.

Our April data shows improved occupancy compared to March, driven by steady regional travel patterns and continued interest in South Australian coastal experiences. As in Agnes Water, booking windows are short, with a surge of last-minute weekend stays driving occupancy in the first two weeks of April.

We are also seeing a shift in the type of traveler. Couples and small groups are replacing larger family bookings, likely due to the end of school holidays. This means properties with 1-2 bedrooms, good presentation, and flexible check-in options are performing best.

One watchpoint: midweek bookings have been softer than we would like. This is typical for Port Lincoln in shoulder seasons, but it does mean hosts need to work harder on pricing strategy and dynamic minimum stays to keep calendars full.

Adelaide: Gather Round Gives a Timely Boost

While most cities are lagging, Adelaide is proving the exceptional at least for April. The AFL Gather Round has been a game-changer. Held in April, the event brought thousands of footy fans into the city, pushing up both occupancy and nightly rates. Properties in central locations and within short drives of match venues performed particularly well.

This single event lifted what was otherwise shaping up to be a lukewarm month for the capital. Without it, we likely would have seen Adelaide mirror the softness seen in other capital cities, where CBDs are still battling with lower business travel and patchy tourism recovery.

We are keeping an eye on post-event performance. Early signs suggest a dip in bookings from mid-April onwards, with occupancy trending back to pre-event levels. Still, that early April spike has made a noticeable difference for the month overall.

Looking Ahead: May Uncertainty and Market Signals

Looking forward, May is typically a slower month, and early indicators support that pattern again this year. Booking activity is sluggish, especially for weekday stays. This is consistent across all three markets.

But theres more at play than just seasonality.

We are hearing growing chatter about broader economic headwinds, talk of a possible recession, interest rate pressures, and reduced consumer confidence..

Will these signals filter through to booking behaviour? Time will tell, but we will continue watching closely.

Right now, travelers are still booking, but staying closer to home, booking closer to their travel dates, and seeking value. That means hosts need to stay agile. Flexibility in pricing, strong guest communication, and great presentation are more important than ever.

Final Thoughts: Eyes on the Window, Ears on the Market

As it stands, we are averaging a 20-day booking window across our portfolio. That leaves room for pick-up in the second half of April and early May. Regional markets like Agnes Water and Port Lincoln are well-positioned to absorb late demand. Adelaide may slow after its Gather Round surge, but it still has a strong April base to build on.

So for now make hay while the sun shines. Keep calendars flexible, pricing competitive, and listings fresh. Market conditions are shifting, but theres still opportunity for hosts who stay informed and proactive.

Happy hosting and stay tuned for our May update.