2019-02-12 Attachment 1 to Item 7 - Short Term Accom Online Platform Issues Paper

4.4        Permanent Rental Market and Housing Affordability
Housing advocates contend that the rising utilisation of online accommodation share economy
platforms are affecting the pricing of the permanent rental market and housing affordability. The
Noosa shire has certainly seen rising rental and property prices in recent years, particularly since
2013, outperforming the state market in terms of growth.

The Noosa shire is one of the strongest performing and most expensive in Queensland in terms of
median house price and unit price14. Additionally, median weekly rental payments in Noosa have
been consistently higher than the Queensland average, consistent with Noosa’s higher median
property prices.
Table 5. Historical Average Median Rents
                                        2006           2011       2016
 Median Rents ($/week)                  $250           $330       $380
 Percentage Increase                       -           32%        15%
Source: ABS (2017b)


Table 6. Median weekly rents for the 12 months ending 31 March 2018
                                               Noosa   Noosa          Noosa                            Sunshine
 Dwelling Type               Qld State                                           Noosaville Tewantin
                                               Shire Hinterland       Heads                             Beach
 1 bedroom flat or unit         $310       $300           $248           n.a.          $325    $300       $350
 1 bedroom flat or unit         $350       $385           $305           $420          $390    $360       $410
 3 bedroom house                $350       $465           $420           $575          $505    $460       $540
 4 bedroom house                $420       $560           $560           $705          $633    $520       $670
Source: Agenda – Planning and Environment Committee Meeting, Noosa Council, 7 August 2018


Table 7. Historical Annual Median Sale Prices for Houses and Units
                                                Annual        5 Year
 Median Sale Price
                                                Change        Change
 Houses      $615,000                           9.2%          25.5%
 Units       $485,000                           7.8%          16.9%
Source: ABS (2017b)



Affordable housing advocates attribute rising rental and property prices to the presence and
popularity of online accommodation share economy platforms, such as Airbnb and Stayz, on the
premise that property owners now prefer the higher return that can be generated from short term
letting and are electing to monetise their asset in this way, rather than through long-term renting or
selling. Property owners are aided and encouraged by the useability, accessibility and simplicity of
online accommodation share economy platforms (with a property also available for personal use
from time to time under this model).

Furthermore, properties that typically would have continued to circulate through the residential
property sale market are now considered of higher value as an investment property that can generate
a return as a holiday rental. Indeed, some local real estate agents in the Noosa Shire are advertising
properties for sale as being ‘great for Airbnb’.




Short Term Accommodation - Online Platform Response Issues Paper                                            Page 14