Investing in Airbnb in Cairns: How a $420,000 Apartment Earned $71,157 in One Year

Can a Cairns investment property cover its interest, body corporate fees and operating costs, then still leave money in your pocket?

For this Cairns North Apartment, the answer was yes. The two-bedroom apartment generated $71,157 after booking-platform fees in its first 12 months, leaving a reported $14,892 cash surplus after the expenses, including loan interest.

The property: a spacious apartment near the Cairns Esplanade

The property settled in November 2024 for $420,000. Including furnishings, stamp duty and legal costs, their total investment was approximately $445,000.

Built in 2009, the apartment offered two bedrooms, two bathrooms and approximately 148 square metres of space, one block back from the Cairns Esplanade.

Its appeal went beyond its proximity to the waterfront. The apartment was near Cairns Hospital, with access to the airport, cafés and restaurants. The complex also offered two swimming pools and two lifts.

The purchasing logic was straightforward: buy somewhere with reasons for people to stay, enough space to be comfortable, and features that make the property appealing to guests.

What did this Cairns Airbnb actually earn?

The first year produced 63 reservations and the full purchase price was borrowed. Here is the result :

Why the property worked for short-term letting

Three purchasing decisions stood out.

Location with several potential guest markets. Proximity to the Esplanade, hospital and airport gave the owners reasons to consider holidaymakers, work travellers and people visiting for medical needs. Their investment thesis was broader than holiday demand alone.

Space and facilities. Two bedrooms, two bathrooms and access to swimming pools helped shape the guest offering. For families or friends travelling together, that combination can be a compelling alternative to separate hotel rooms.

Flexibility of use. The owners reported selecting an apartment that permitted both short-term accommodation and permanent residential use. That flexibility was central to their buying criteria, giving them options beyond holiday letting. Buyers considering another property should have its specific approvals, conditions and body corporate arrangements checked before relying on the same strategy.

The team also believed the purchase price compared favourably with the cost of replacing a similarly sized apartment in that location. This was part of their assessment of value, rather than a guarantee of future price growth.

High body corporate fees did not prevent a strong result

Almost $12,000 a year in body corporate fees could easily put a buyer off.

In this case, the owners saw value in a well-maintained complex with facilities that supported its appeal to guests. The relevant question was whether the purchase price, accommodation income and total expenses worked together.

This property results illustrates why an investment needs to be assessed as a whole. A property with higher expenses can still deliver attractive cash flow when its income supports those costs.

Get started with Airbnb in Cairns

Already own a property? Contact Pebble Stays to discuss Airbnb management in Cairns and assess its short-term rental potential after management costs.

Cairns tourism provides an encouraging backdrop

The wider visitor economy also offers reasons to pay attention. Tourism Tropical North Queensland reported record international visitor spending of $1.3 billion in the year ending March 2026, up 27.6% on the previous year. These are regional tourism figures, not Airbnb revenue figures. Read TTNQ’s September 2026 update.

That spending provides encouraging context for accommodation owners. It does not mean every property will perform equally well. Location, presentation, pricing, seasonal demand and operating costs still determine how much of the opportunity reaches an owner’s pocket.

Cash flow was only part of the result

Alongside the cash surplus, the apartment reported an estimated capital gain of approximately $60,000 over the first year, based on comparable sales.

Combined with the $14,892 surplus, that represented approximately $75,000 in reported cash flow and estimated growth. The growth was unrealised, rather than rental income or money received from a sale, and the estimate was based on comparable sales.

For the owners, the attraction was the combination: accommodation income helping carry the investment while they held it for the longer term.

Looking to buy or manage an Airbnb in Cairns?

This case study demonstrates what can be possible when property selection and short-term rental operation work together. A publicly advertised $420,000 apartment produced more than $71,000 after platform fees and a positive cash result after the owners’ reported costs.

The next step is to assess what a suitable property could look like for you.

Looking to buy? Contact The Buyers Co for help identifying and assessing Cairns investment properties, comparing opportunities and negotiating your purchase. Let the team know you are interested in a property with short-term rental potential.

Looking for management? Contact Pebble Stays to discuss your Cairns property, its accommodation potential and the support you need to manage it.

The cash surplus reflects the expenses described, before personal income tax. Individual results will vary.