The market
Holiday Rentals in the Southern Highlands
Cavmir is an Airbnb marketing agency for Australian holiday homes. This page is for owners and managers of short-stay homes in Southern Highlands.
The Southern Highlands is the part of Wingecarribee Shire around Bowral, Mittagong and Moss Vale, about 100 km south-west of Sydney and about 150 km from Canberra, both measured in a straight line. It is Gundungurra and D'harawal Country, and the council's Local Housing Strategy (adopted in June 2020 and amended in July 2021) says Europeans first explored the area in 1798 and that the Main Southern Railway drove the rapid growth of Mittagong, Bowral and Moss Vale in the 1860s. The same document calls those three the shire's main towns, describes the land between the towns as mostly farmland, and says more than 103,000 hectares, over 38 per cent of the shire, is national park or nature reserve. This page covers the towns owners ask us about most: Bowral and Burradoo, Mittagong, Moss Vale and Sutton Forest, Berrima, Exeter and Bundanoon. The stats box and most figures below come from AirROI's Bowral market, October 2025 to September 2026 (the page was updated on 1 October 2026), which is the closest single read on the Highlands. For Mittagong, Moss Vale, Berrima, Bundanoon, Burradoo and Exeter I use their own AirROI pages or its nearby-markets table, and I say so each time. AirROI quotes Australian dollars after converting from US dollars at roughly A$1.44, and every dollar figure here is as AirROI prints it.
On those figures Bowral is a high-rate market. AirROI counts 191 active listings, up 14 per cent on the year before, with average revenue of A$74,199 a listing (up 6.1 per cent), average occupancy of 44.1 per cent and an average daily rate of A$579. The New South Wales averages AirROI prints beside them are A$46,850 a year and A$445 a night, and it ranks Bowral 38th among the 305 market areas it tracks in the state. The nearby towns look different from Bowral and from each other. On their own AirROI pages for the same twelve months, Berrima averages A$69,853 a listing at A$671 a night with 54 listings, Bundanoon A$67,881 at A$612 with 61 listings, Moss Vale A$56,047 at A$455 with 85 listings and Mittagong A$54,532 at A$482 with 75 listings. AirROI's table of markets near Bowral adds Burradoo, with 40 listings averaging A$81,919 at A$597, and Exeter, with 38 listings averaging A$79,190 at A$778. Each of the five markets with a growth figure added listings over the year, by 11 to 23 per cent, which matters for the pricing and challenge sections below.
The guests are mostly Australians. AirROI puts 91 per cent of Bowral's guests as domestic, with Sydney the largest single origin at 19.1 per cent, then Canberra at 3.0, Melbourne at 1.7 and Newcastle at 1.1. The United Kingdom sends 3.1 per cent, the United States 1.4 and New Zealand 1.3. The pattern holds across the nearby towns: Sydney sends 21.5 per cent of Moss Vale's guests, 22.1 per cent of Berrima's, 20.7 per cent of Mittagong's and 18.9 per cent of Bundanoon's, and Bundanoon draws the most from Canberra at 6.6 per cent. Guests book about 67 days ahead on average in Bowral and stay 3.1 nights, so this is a short-break market that people plan a couple of months out. If you want to see how Sydney and Canberra guests search before they ever reach the Highlands, our pages for Sydney and Canberra cover the two cities that send the most of them.
The homes are mostly houses, and mostly whole homes. In Bowral, AirROI counts 95.8 per cent of listings as entire homes, 68.6 per cent as houses, 20.4 per cent as hotel or boutique stays and 4.7 per cent as apartments. Entire homes with three or more bedrooms make up 56 per cent of the entire homes that report a bedroom count, and 33 per cent of all listings sleep eight or more. Fireplaces are standard rather than special: 47 per cent of Bowral listings have an indoor fireplace, against 61 per cent in Mittagong, 63 per cent in Berrima and 75 per cent in Bundanoon. Free parking is listed by 92 per cent. Size drives revenue more than anything else on the page. Average annual revenue climbs from A$35,100 for a studio and A$42,900 for one bedroom to A$77,200 for three bedrooms, A$88,800 for four and A$143,000 for five or more. Studios and one-bedroom homes run at about 50 per cent occupancy, while homes with five or more bedrooms sit at 37 per cent and charge A$1,284 a night, so the big houses sell fewer nights at a much higher price.
The spread between the top and the middle of the market is wide. AirROI's monthly revenue tiers for a Bowral listing are A$15,000 or more for the top 10 per cent, A$9,240 or more for the top quarter, A$5,280 for the median and A$3,070 or less for the bottom quarter. The median nightly rate is A$425, the median occupancy about 43 per cent, and the top 10 per cent of listings are booked 79 per cent of nights or more. What the better listings have in common is mostly visible in AirROI's amenity table: the average listing with an indoor fireplace earns A$93,500 a year against A$57,400 without one, a BBQ grill A$91,300 against A$55,800, a fire pit A$88,900 against A$68,900 and a pet-friendly listing A$84,800 against A$66,900. Read those as a description of the homes that carry each feature, not proof that the feature caused the gap, since larger and better-placed houses tend to have all of them. They do show what Highlands guests choose to pay for: a fire in winter, a barbecue in summer and somewhere the dog is welcome.
What brings guests to Southern Highlands
- The Bradman Museum in Bowral, on St Jude Street
- Corbett Gardens and the Tulip Time festival, held since 1958
- Ngununggula, the regional art gallery in Bowral
- Berrima, settled in the 1830s and still a largely intact Georgian village
- The Surveyor General Inn, licensed in 1835
- Berrima District Museum, open Friday to Sunday
- Morton National Park walks from Bundanoon
- The Bundanoon Highland Gathering, known as Brigadoon, since 1978