Landlords of short-stay rentals in the heart of Sydney that once fetched hundreds of dollars a night have been forced to return them to the long-term rental market amid the pandemic, with the supply glut slashing prices for locals.
Some owners of traditional rental properties are renovating dated listings to compete better with the influx of immaculate, hotel-style listings, agents said.
Thousands of available short-stay listings in Greater Sydney were shed over the year to December, according to data from short-term rental analytics firm AirDNA.
More than 20,300 short-term listings were available in December 2019, falling to under 11,400 a year later.
There were fewer than 800 available listings in both the CBD and Bondi in December, from some 1700 and 1200 respectively a year ago.
It comes as long-term asking rents in the city and eastern suburbs, popular areas among tourists and students and saturated with short-term accommodation, have been hard hit. The pandemic prompted a rise in unemployment and a dearth of international students and tourists, as well as an influx of empty holiday accommodation into the long-term rental market.
Asking rents in Millers Point recorded a staggering 30.5 per cent reduction in the median asking rent to $695 a week in the year to December, the latest Domain Rent Report shows.