2022-11-14 GC Agenda - Item 4 - Attachment 1 - Short Term Accommodation Monitoring Report 2022

Locations near the river or beach were identified predominantly for visitors and not affordable
to residents, identifying housing for residents in locations such as Tewantin and the hinterland.
The HNA2017 identified the conflict and competition for dwelling stock between permanent
residents and visitors as being a key issue in Noosa’s housing market. It also identified that
continued tourism growth, as seen in the past, would lead to growth in demand for visitor
accommodation, requiring additional visitor only sites, increased use of dwelling stock for
short-term accommodation and the movement of permanent residents out of resorts. Whilst
the HNA2017 recognised the conflict, it did not necessarily provide resolution of the issue,
albeit the rise of houses being used for short term accommodation was in its infancy at the
time.
The tourist accommodation offer in Noosa has a history of being dominated by self-contained
accommodation, being units, townhouses and houses, which made up a considerable part of
the overall dwelling stock. In the absence of greater options and supply of hotel style
accommodation, particularly 5-star hotels, tourists had limited options, with dwellings being
the most readily available accommodation type, particularly for those seeking a higher end
product for larger groups.
With the inherent ability to short term let most multiple dwellings in Noosa, as online booking
platforms accelerated there was a sharp increase in the supply of short term accommodation.
The conversion of dwellings to short term accommodation and the ability to self-manage
properties from a distance using online booking platforms became attractive to investors,
yielding higher returns than permanent rental. 85% of short term accommodation properties
are owned by investors outside of Noosa Shire.
The 2019 Short Term Accommodation Online Platforms Issues Paper identified the challenges
arising from the sharp growth in short term accommodation and use of online booking
platforms. A number of negative effects were identified around over tourism, housing
affordability, the rental market, reduced residential livability and disruption to sense of
community.
Short term accommodation, and associated legacy issues from past planning schemes,
became the biggest issue to resolve in the preparation of Noosa Plan 2020.


Noosa Plan 2020 response
In response to rising concerns of the impacts of short term accommodation on residential
amenity, housing supply and affordability, Council made the decision to make short term
accommodation an inconsistent use in the Low Density Residential zone in Noosa Plan 2020.
Whilst recognising around 800-1000 dwelling houses were likely to have existing use rights, it
was not intended to grow short term accommodation in the zone. Notwithstanding this, a
permanent resident short term letting their property for no more than 4 times and 60 days a
year, was considered acceptable as it did not deplete housing stock and ongoing residential
amenity issues were less likely.
During the first 12 months of NP2020s operation, 214 dwelling houses were successful in
gaining approval for short term accommodation under the superseded planning scheme
provisions and 108 dwellings (including both dwelling houses and units) confirmed existing
use rights.
Overall, 1,046 dwelling houses have now been identified as operating short term
accommodation and will need to confirm they have existing use rights for short term
accommodation under the short stay letting and home hosted accommodation local law. The
number of dwelling houses being used for short term accommodation in the Low Density
Residential zone has continued to grow over the last two years, despite making short term
accommodation an inconsistent use in the Low Density Residential zone, increasing by 12.1%.
The changes introduced by NP2020 making short term accommodation an inconsistent use in
the Low Density Residential zone is considered to have had no negative impacts on short term
                                                                                         pg. 126
Noosa Council Monitoring Report 2022/23