Upswing in Airbnb drives up rent cost

AN increase in Airbnb homes in the Douglas Shire is reducing the number of permanent rentals on the market and driving up property prices.

A University of Sydney study revealed that at least one in 10 properties in Douglas Shire is listed on online rental platforms, while the number of Airbnb rentals across the state doubled in the last 18 months.

Mossman and Port Douglas Raine and Horne director David Cotton said there had been an increase in people buying properties to renovate and rent out specifically for the Airbnb market.

“Which is taking permanent rental properties off the market … so it’s driving prices up,” he said.

Over the past year Mr Cotton said there had been a 10 to 20 per cent increase in rental prices in the region.

The lack of permanent rental prices may have an adverse impact on the region’s cornerstone industries such as hospitality and tourism, especially during peak season.

“I’ve heard stories where chefs and waiters and staff on the boats … if they can’t find accommodation they obviously can’t live here so they move on,” he said.

Tourism Port Douglas and Daintree executive officer Tara Bennett said people were turning to short-term rentals because they wanted higher returns on their investment properties.

Ms Bennett agreed that a drawback to the Airbnb phenomenon, especially in small communities like Douglas Shire, was the reduction in affordable accommodation for the community and seasonal workers.