Up to 24 per cent of properties are listed on short-stay platforms in Lorne, where 74 Dorman St is selling with a $2.95m price tag.
The sell-off of holiday rentals is tipped to continue along the coast as property investors weigh up the cost of Victoria’s new Airbnb tax.
Short-stay accommodation owners are set to be hit with a 7.5 per cent levy under legislation introduced into parliament this week.
The Short Stay Levy Bill will also give councils the power to ban holiday letting altogether or dictate the number of days a property can be listed.
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The Surf Coast Shire said it looked forward to exploring what this might look like for the municipality.
Mayor Liz Pattison said the legislation, aimed at encouraging investors to return properties to the long-term rental market, aligned with the shire’s strategy to improve access to affordable residential accommodation.
Revenue from the levy would be paid to Homes Victoria for social housing, with a portion of funds to be invested in the regions.
It will apply to all bookings made from January 1 next year.
Surf Coast Shire Mayor Liz Pattison welcomes the short-stay levy. Picture: Alison Wynd
“The affordability crisis is a national issue we’re feeling the impacts here on the Surf Coast. It’s getting harder for people to find the accommodation they need and can afford,” Ms Pattison said.
“We know the short-stay market is attractive for property owners, rather than the long-term market. This is tearing at the social fabric and economic prosperity of our communities.”
About 10 per cent of total private dwellings on the Surf Coast are listed on the Airbnb platform.
In Lorne that figures is as high as 24 per cent.
“Key workers are being priced out, and this is impacting on our local economies and liveability of our towns,” Ms Pattison said.
“Workers cannot afford to live where they work, not just in hospitality, but also in health, education and emergency services.”
The ‘Salty’ shack at 27 Swan Pde, St Leonards, is a popular Airbnb listing that’s now selling for $800,000 to $850,000.
The interior has had a beachy renovation.
Great Ocean Road Real Estate director Ian Stewart said it would be a good thing for the Lorne if the levy flushed some property owners into the tight long-term rental market.
But he said it would further undermine confidence in a market already hit hard by land tax and a slump in visitor demand due to the cost of living crisis.
“It’s just another one of those germs in the bag of negativity that the Victorian property market has had to deal with,” Mr Stewart said.
“Unfortunately, the Victorian property market has been hit as hard as any property market in the country with the extra taxes that have been forced upon us.”
Great Ocean Road Real Estate director Ian Stewart.
He said his office had held multiple discussions with Lorne property owners seeking appraisals to ascertain whether holding onto their houses stacked up.
Felicity O’Brien, who manages 100 coastal properties through her business Airready, said many Airbnb owners were already switching to long-term rentals as they needed more consistent returns to cover land tax.
She said the quietest winter for bookings had only compounded mounting financial pressures.
This two-bedroom apartment in the Mantra Lorne resort, which has just gone under offer, generated a 6 per cent nett return last year.
“It’s hard times anyway at the moment because people are not spending the money. It’s needs to be really competitive and people are really concerned what the future brings,” Ms O’Brien said.
“So the market is generally very low and then having the levy that comes in in January on top is definitely a concern of everyone in the industry.
“It’s ultimately going to be more expensive for guests.”
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