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

2.9.4 Housing
The supply and use of dwellings for short-term accommodation directly affected the supply
and availability of dwellings for permanent occupation by residents, in terms of rental supply,
vacancy and sales price.


2.9.4.1 Rental vacancy rates
The Housing Needs Assessment 2021 (HNA2021) identified changes in the rental market that
can be attributed to the initial COVID -19 restrictions between March and June 2020 and
corresponding availability and higher rental vacancy rate of dwelling stock normally used for
short-term accommodation in April 2020. A sharp drop in vacancy followed in June 2020
onwards correlating with easing of border closures and domestic travel restrictions, net internal
migration, and return of dwelling stock back to short-term accommodation use.
Following this period rental vacancy rates were at an all time low and unprecedented demand
for rental properties from locals and interstate migrants saw unsustainably low supply and
price increase. Refer to commentary and Figures 20-22 in Appendix 8.


2.9.4.2 Rental bonds
In relation to the numbed of rental bonds, the HNA2021 found there was an increase in rental
bonds in the early part of 2020, corresponding with the initial border closures and lockdowns:
       … There has been much discussion about the impact of COVID19 on the availability
       of rental accommodation in Noosa Shire. What this data shows is that from early 2020
       there was actually an increase of RTA bonds. When international borders and some
       state borders closed there were investors who transitioned properties from holiday
       letting to long term tenancies so the quantum of rental accommodation actually
       increased for a period. From late 2020 it has been dropping again, but not significantly
       below the levels of 2019. In combination with the vacancy rates, this means there is
       still a significant number of properties being rented, however competition is much
       stronger than it once was, largely a result of increased interstate migration…. Since
       mid-2020 there has been unprecedented demand for rental properties. Rental prices
       have increased to levels that are not sustainable on local incomes, particularly single
       person wages.


2.9.4.3 Housing prices
The effects of COVID-19 saw residential property transactions fall substantially in the eight
capital cities during the June 2020 quarter. The residential property price index fell -2.2 % in
Sydney, -2.3% in Melbourne and -0.9% in Brisbane.
The ABS – A series of unprecedented events – June quarter 2020 stated:
       COVID-19 restrictions and uncertainty drove a sharp decline in housing market activity
       that led to large falls in the value of new housing loan commitments in April and May,
       with the May fall (11.6%) being the largest in the history of the series. June saw some
       recovery with a rise of 6.2% in housing loan commitments.
Whilst there was an initial fall in property transaction in the early stages of COVID 19 – the
market quickly changed with an unprecedented housing boom and substantial property price
growth and property transactions in Noosa.




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Noosa Council Monitoring Report 2022/23