Short-stay accommodation platform Airbnb is placing pressure on rental markets and pushing up house prices in areas with high tourist numbers, according to RiskWise Property Research CEO Doron Peleg. Peleg says people seeking long-term tenancies cannot afford to pay the rates achieved by short-term leasing for holidaymakers. In tourist spots such as Byron Bay, Airbnb has helped to force long-term tenants out and has increased property prices.
“In areas such as these, and particularly in beachside suburbs, we see the overall demand for properties by investors and owner-occupiers going up,” he says.
“Investors know they can use the property for Airbnb and many put in place leases that last 10 months, so they are vacant during summer for holiday-makers. So, when buyers try to enter the market they are faced with competition from investors which drives prices up.
“Those looking for long-term leases generally aren’t keen on moving every few months – so that also encourages them to buy, which means there are more competing for properties and pushing prices up. It’s a phenomenon we are seeing around the world.”