New limits for short-stay accommodation proposed in Whitsunday region
Tourists in some of Australia's favourite winter holiday destinations could soon face new limits on where they stay, as local governments crack down on short-term accommodation.
Changes proposed by the Whitsunday Regional Council, which includes popular north Queensland tourist hub Airlie Beach, would zone accommodation rented through companies like Airbnb or Stayz away from residential suburbs.
Mayor Ry Collins said the proposed limits were the result of years of community feedback.
"You obviously don't want to see residents who are living and working here displaced because they can't get a rental or accommodation in the area."
Data from real estate company PRD shows the region had a rental vacancy rate of 1.4 per cent in December, well below the Real Estate Institute of Australia's "healthy" benchmark of 3 per cent.
A council housing report in August stated rental availability had declined by 15 per cent across the region over the past two years, stating that "unprecedented" housing supply shortages and cost increases had "worsened considerably".
In the leafy Whitsundays suburb of Cannonvale, Debra Burns, 63, said preventing more short-term accommodation properties in her area would ensure the idyllic region could support its residents.
"A party house can be some hard-working people getting away for a few days with their families, just having a good time," she said.
Further north in Townsville, dwellings advertised as short-stay accommodation for more than 30 days a year will now be charged commercial rates, rather than residential, in an update to the rates structure introduced by the city council in this year's budget.
In Cairns, short-term accommodation is permitted in the central city area, but is subject to council approval in low-density suburbs.
It comes as new data shows investors in the tropical holiday property market are generating some of the largest returns in the country.
The Whitsundays topped international holiday letting analyst AirDNA's list of top-performing regions for short-term rentals in April, where owners are generating annual revenue potential of $141,372.
A statewide review of the impact of short-term accommodation on the housing market, commissioned by the Queensland government in 2023, found it was a relatively minor contributing factor to the overall housing crisis.
The biggest impact was found in localised areas with a high concentration of short-stay dwellings, such as in popular tourism destinations like the Gold Coast, the Whitsundays, Townsville and Cairns.
A lack of supply was the main driver of the state's housing affordability and availability issues, the review found.
Cr Collins said while the council's proposed changes were not a cure-all to the housing crisis, he hoped they would help separate the strong demand for short-term stays from residential housing stock.
"It is really to create better definition around where exactly we want to see short-term accommodation occur and really define those key tourism precincts," he said.
"We want to ground truth it and make sure it's in line with what the community expects."
The changes are open to community consultation until July 26, before they go to the state government for final approval.
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