Avalon Beach was a hotspot for Airbnb short-term vacation rentals until the COVID-19 pandemic took its toll on local tourism. However, a new study has revealed that Avalon Beach is bouncing back from this slump in a big way.
According to the experts from the City Futures Research Centre at the University of New South Wales (UNSW), Airbnb landlords in Avalon Beach have experienced an average of 23.5 percent rise in rental demands from August 2020 to April 2021. It’s the biggest increase among other Airbnb suburb hotspots, such as Bondi, Manly, Darlinghurst, Redfern and Surry Hills, per the study published in the journal Urban Findings.
The report cited that most Airbnb landlords shifted from short-term arrangements to long-term lettings to avoid mortgage stress.
“Many Airbnb’s were converted to long-term rentals, presumably by landlords who are now seeking a more stable income source, particularly given that Airbnb wasn’t even operating for a few months,” study author William Thackway said.
“Now, when you get Airbnb’s converted back to long-term rentals, there’s a new influx of supply to the rental market, and there has been a corresponding reduction in rental prices, and that’s been observed for almost all active Airbnb areas.”
Airbnb rental markets in Manly, Queenscliff, Curl Curl, Fairlight and Freshwater are also bouncing back, with some areas surpassing their highest demands before the pandemic. Bondi, Coogee and Bronte Airbnb markets are slowly ticking up as well but not as much as their numbers before COVID-19 hit.
In late 2020, the Short-Term Rental Accommodation (STRA) policy was updated to help the industry’s recovery post-COVID and extend a reprieve for renters:
- A 180-day cap for homes across Greater Sydney where the owner lives elsewhere, while giving other NSW councils the option to apply to the Department of Planning, Industry and Environment for this cap;
- Hosted STRA homeowners being able to rent their homes out 365 days of the year;
Minimum fire safety standards; and - A Code of Conduct for hosts, guests, online booking platforms and agents.
“The sector has suffered during the pandemic but our whole-of-government approach will get businesses and homeowners back on their feet as restrictions ease and we provide certainty ahead of the popular summer months,” Department of Planning, Industry and Environment Executive Director of Local Government and Economic Policy Luke Walton said.
“We can now share a clear set of rules that support the $30 billion a year industry while protecting the rights of hosts, guests and neighbours.”
However, concerned residents in these Airbnb hotspots said that this should be a temporary fix and must be amended again when more tourists are back in Sydney.
