Driven by platforms such as Airbnb and Stayz, the short-term rental market in Australia has doubled in value over the past two years to $1bn and supports over 40,000 full-time jobs, according to a new report from MadeComfy, a short-term property management specialist.
Examining tourism in Australia over 2016-17, the report found that the demand for short-term rentals (STRs) has more than doubled over the last two years in Sydney, Melbourne, and Brisbane.
With STRs making up 11.8% of total tourist accommodation and over 8.5 million international tourists (many from China, Japan, and South Korea) coming to Australia each year, the opportunity for growth in this market is immense.
A 2017 study by economics and policy consultancy ACIL Allen found that STRs across Australia provided 7.1 million nights of accommodation in 2016, generating over $1bn in revenue. The majority of accommodation was provided in New South Wales, which saw 2.5 million nights that year. Victoria ranked second, with over 2 million nights, and Queensland third, at just over 1.2 million nights.
Combining ACIL Allen’s data with its own, MadeComfy showed that STR average weekly revenue far outperforms the long-term rental (LTR) average in all three states. The weekly LTR average for both houses and apartments in Sydney was $550, whereas the STR averages was $733 for apartments and $1,211 for houses per week.
In Melbourne, the LTR average for houses and apartments was $420 and $400 respectively, compared to the STR average of $577 for apartments and $898 for houses. Brisbane registered an LTR average of $370 for apartments and $400 for houses, as well as an STR average of $447 for apartments and $720 for houses.
Hey, MadeComfy would know. She's one of the top commercial Airbnb operators in NSW. Would seem that most of her properties are what the Land and Environment Court refers to as an "Illegal Use of Premises"? Effectively turning residential property into hotel accommodation robs us of critical housing, rips residential communities apart, plus has shocking effects on genuine tourism accommodation providers. Wake up world! Stop using Airbnb/Stayz. Residential Housing is for the housing of Residents.