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

4.6 Economic and Social Assessment – AEC
AEC was engaged by Council to undertake an economic and social impact assessment for
input to this monitoring report on the provisions in Noosa Plan 2000 as they relate to short
term accommodation, tourism and housing supply. Using the findings from this monitoring
report, visitor data, short term rental dwelling supply and demand data, as well as overall
property sales and rental market data, the AEC report assesses the recent, current and
potential impact of the relevant scheme provisions on short stay accommodation and the
economic and social impacts of maintaining and/or extending these provisions.
The full report is attached as Appendix 13 with the following key findings evident from AEC
analysis of relevant datasets:


Market analysis
•   COVID-19 and subsequent border closures and lockdowns had a profound impact on
    visitation to Noosa, including the supply of, and demand for, short stay accommodation.
•   However, the number of visitors to Noosa has recovered strongly post-COVID-19, with the
    extent of the recovery being much more positive than in SEQ over the past two years since
    the adoption of NP2020 and record numbers of visitor nights being recorded in the March
    quarter 2022.
•   The share of paid visitor nights in rented dwellings has increased sharply in Noosa over
    the past year when compared with the historical average, with nights spent in short term
    rentals in January to September 2022 being the highest ever over that period and record
    occupancy rates in August/September 2022.
•   Total dwellings available for short term rental in Noosa increased by 5.7% between April
    2020 and October 2022, from 4,754 dwellings to 5,025 dwellings.
•   Looking at supply across LDR zones, the number of dwellings used for short term
    accommodation increased by 12.1% from 846 dwellings to 948 dwellings (12.1%
    increase).
•   The increase in dwellings available for short term rental between April 2020 (just prior to
    the introduction of NP2020 making short term accommodation an inconsistent use in LDR
    zones) and October 2022 suggests that NP2020 has not detrimentally impacted on market
    supply to meet tourism demands.
•   In terms of residential dwelling sales volumes, the property market cooled in 2019 and
    early 2020 in Noosa but activity jumped from late 2020 for both attached and detached
    dwellings.
•   While changes in Noosa’s residential dwelling sales volumes have tracked relatively
    consistently with SEQ, median sales prices in Noosa have recently increased substantially
    more than in SEQ with the increase between year ending March 2020 and year ending
    March 2022 being 56.8% (compared with 26.9% for SEQ).
•   The average sales price for a detached house in Noosa in YE March 2022 was 159%
    higher than in SEQ and 210% higher than in Queensland, while the average sales price
    for an attached dwelling was 186% higher than in SEQ and 204% higher than in
    Queensland.
•   There has been no noticeable negative impact of NP2020 on demand or values, with
    people wanting to buy more dwellings in Noosa and at considerably higher prices.
•   Strong demand has, however, worsened housing affordability for Noosa residents and
    workers.



                                                                                       pg. 131
Noosa Council Monitoring Report 2022/23