In an attempt to combat deteriorating housing affordability and a tightening rental market, Brisbane City Council will increase rates for properties that are rented as short-term accommodation on sites like Airbnb and Stayz.
The new policy, which will come into effect from July, is part of the state government’s $4-billion budget and is designed to force more homeowners to return their properties to the general rental market.
Under a staged introduction, owners who rent residential properties as short-stay accommodation through websites like Airbnb, Booking.com and Stayz will be asked to self-identify or will be identified through online resources or their neighbours.
The charges will only apply to entire properties, not single rooms or granny flats, and only to those rented out on short-term leases for more than 60 days a year.
Lord mayor Adrian Schrinner said the 50 per cent rate increase would mean a property on Brisbane’s minimum rating category would pay $600 extra a year.
“It is my hope that instead of paying extra, many owners will return these houses and apartments to the long-term rental market which will help ease our housing shortage,” Schrinner said.
According to SQM Research, the amount of available rental properties has halved in Brisbane in the past 12 months with the rental vacancy rate at 0.7 per cent as of May.
Over the past year, rents in Brisbane have increased by 20 per cent for a house and 10 per cent for a unit. A typical Brisbane house is currently renting for $610 while a unit is averaging $430.
Rental listings have also fallen by 4.8 per cent to a record low of 1600 in Brisbane, putting them down 47.4 per cent year on year.
Interstate migration into Queensland, rising at its fastest rate since late 2003, has remained a tailwind for housing demand as people in southern states continue to look for more affordable options.
The state’s population is expected to surge by more than a quarter of a million people in the next four years according to forecasts in the federal budget.
“Brisbane is a victim of its own success with our status as Australia’s fastest growing capital city contributing to a chronic shortage of rental properties,” Schrinner said.
“There is no silver bullet solution to housing affordability, but this is one way we can play a part at a local government level.”
Short-term accommodation data analysis company AirDNA estimated about 3600 homes were currently listed on sites like Airbnb across the greater Brisbane area, including in Ipswich and parts of Moreton Bay and Logan.
The short-stay holiday rental industry injects about $200 million to the Brisbane tourism region and pre-pandemic supported up to 1500 full time jobs.
Airbnb manager for Australia and New Zealand Susan Wheeldon told the ABC the council's move would hurt people who use short-stay accommodation currently facing sharply rising costs of living and economic uncertainty.
Stayz director of corporate affairs Eacham Curry agreed, cautioning against arbitrary fees that are not substantiated by data or consultation.
Experts have argued that properties transitioning to short-stay accommodation was only a small factor in rising rents and fewer listings.
More people are seeking stand-alone homes due to the trend towards working from home as higher housing prices also force more people to stay as renters for longer.
Earlier this year, Noosa shire council introduced a $950 registration fee for short-term accommodation properties.
The New South Wales government has also approved a request for a 90-day-a-year cap on short-term rentals in Byron Bay.
