2021-12-13 GC Agenda - Item 8 -Attachment 1 - Housing Needs Assessment

16. Residents V’s Visitors
Noosa Shire is a popular domestic and international tourism destination and tourism is a significant
contributor to the local economy. Data derived by Noosa Council and Unity Water show that at 2016
there were 5,301 existing non-resident (visitor) dwellings. Over 93% of these are in the coastal areas.
There are also undeveloped sites committed in Noosa Plan 2020 for future visitor only
accommodation.
Section 5.3 has explained that since the introduction of the Planning Regulation 2017 premises
occupied by permanent households are not considered to be the same land use as premises for the
short-term accommodation of tourists and travellers. Until recently Noosa Council has not regulated
the use of a house for short-term letting.
Section 9 also touched on the impact COVID19 had in suddenly and briefly increasing the vacancy
rate for permanent rentals, following March 2021.
Much discussion and research worldwide has focussed on whether the rise in short-term letting of
private residences has depleted permanent rental stocks and pushed rental prices up. Research has
most typically focussed on large global cities such as New York, Paris, London, Barcelona and
Sydney. As the research has shown there to be impacts many of these cities are now limiting short-
term rentals to closer resemble the home sharing models that platforms like AirBnB were founded
on.
Regional tourist destinations like Shoalhaven, Byron Bay or Mornington Peninsula, are more relevant
comparisons for Noosa, sharing close drive proximity to a capital city.
Section 10.4 has already addressed to correlation between AirBnB listings and the availability and
cost of permanent rentals, including AHURI’s recommendation on the subject.


16.1        Visitors in residential neighbourhoods
The 1997 Strategic Plan, now over 20 years old acknowledged the importance of a mix of permanent
and visitor accommodation in both houses and units, and recognised that this mix had the potential
to yield conflicts. The long held position has been that where such conflicts arise, the protection of
residential amenity prevails. Notwithstanding this, there is inevitable conflict between permanent
residential and short-term visitor accommodation.
During the community consultation on the draft Noosa Plan 2020, the single biggest issue that
generated the greatest number of submissions was the short-term letting of residential premises to
paying guests. The following provides a summary of these issues and feedback received during the
development of Noosa Plan.
16.1.1          Owners of Short-term rentals
The owners of many short-term let investment properties want flexibility to let their property to short-
term guests as and when they chose either through a local property manager or online booking
platform. Some also want the opportunity to use their property at times themselves or intended on
retiring to the property in the future.
Other benefits for the property owner are financial in nature: higher rental returns than permanent
rental, the ability to adjust the rent on a seasonal basis or peak periods, the regular maintenance
that wards against wear and tear, the ability to claim appliances, furnishings and fittings as well as
maintenance as expenses against income, etc. While tourism demand is strong the annual return
on a short stay property is favourable.
Further, various submissions were received from individuals or businesses who either service,
furnish or maintain short-term accommodation, and from businesses dependent on the tourism
industry more generally.



Noosa Housing Needs Assessment 2021                                                           Page 118