Byron Bay short-term rentals face major cap as hotels boom
NSW’s Byron Shire is set to see a significant decrease in the number of days short-term rental properties can be rented out without the owner present.
Effective September 24, 2024, the maximum number of "unhosted" rental days will drop from 180 to just 60 per year. Unhosted rentals typically involve properties booked through platforms like Airbnb where the owner isn't residing on-site during the guest's stay.
The Minns government implemented the restrictions in response to a growing concern over housing availability. A shortage of long-term rentals and a perceived oversaturation of properties dedicated to the short-term holiday market were identified as key issues.
While the cut to 60 days was announced a year in advance to allow property owners to adjust, Byron Shire Mayor Michael Lyon suggests the change was foreseeable. He said the move is partly responsible for a recent surge in hotel-style developments in the area, including the recently opened 32-room boutique accommodation, Basq House.
According to its Melbourne owners, Basq is inspired by the grandeur of Moroccan riads, with many luxury rooms overlooking a magnesium pool. Rooms are available from $425 a night.
“What we’ve seen because of the proposed changes, but also because Byron is attractive for investors, is that a lot more hotels have been developed, many at the higher end of the market, but also across the spectrum,” Lyon said.
″People are investing more into that type of commercial holiday accommodation in the town centre (Byron Bay), where you want it – and that’s a great thing. That’s because investors move well ahead of time. So, we’ve already seen the benefit of this policy coming into place, both through this kind of accommodation and also through the return of properties to the long-term rental market.”
Airbnb Australia and NZ spokesman Michael Crosby defended the impact the company has had in the Byron region.
Crosby said there’s evidence that night caps, “both locally and internationally, have not worked to improve housing costs or supply” but that Airbnb has brought several economic benefits to the region.
Local governments with a vested interest in the short-term rental market are now closely watching how the government’s restrictions will play out in Byron.
Jonathan Jackson, 22nd July 2024
