Impacts of short-term holiday rentals on long-term accommodation vacancies to be investigated
Rental Shortages
The booming holiday market in Douglas Shire is just one of several factors being associated with the ongoing rental home shortage in the region.
A Queensland-wide shortage of rental properties has prompted the state government to launch an investigation by industry experts into impacts the short-term rental market is having on housing supply.
The move follows concerns that the number of properties placed on short-term rental sites such as AirBnB and Stayz, might be worsening the current tight rental market.
“Yes, there has been pressure on the rental housing market due to people wishing to take advantage of the booming holiday market,” LJ Hooker Port Douglas’s Nicki Samson told Newsport.
However, she added there are many components to consider that have all placed pressure on the sector:
“Existing rental properties being sold to owner occupiers,” Ms Samson said.
“The pending Qld land tax changes – which have now been scrapped – certainly scared off investors to Queensland for a time.”
Nationally there is another major element of the ongoing rental squeeze showing no signs of easing soon – interest rate hikes.
“The rising interest rates mean the investor yield has dropped off even with rising rental returns.”
Deputy Premier and Minister for Planning Steven Miles said that while the number of short-term rental properties was relatively small in comparison to the entire housing sector, the government would look at all avenues that may result in an increase in properties being available for longer term rental.
“We are listening to the community, industry, councils and other stakeholders, who have raised these concerns on both sides,” Mr Miles said.
In the meantime, in one major Douglas Shire real estate office at least, there is some light at the end of the tunnel.
“As we come to the end of the traditional tourist season, we are seeing that the take up rate for rental properties is back to a more normal level,” Ms Samson said.
“Our rental availability percentage is at 2.5.
“But we need more investors back in the market, that will provide more rental homes for tenants.”