Price of Jindabyne Airbnb rentals increases as house prices soar in the regional NSW suburb

The holiday price hike comes as house prices in the regional NSW suburb have nearly doubled in two years.

In February 2020, at the onset of the COVID-19 pandemic, the median house price in Jindabyne was $690,000. Two years later, house prices have risen 97 per cent.

The latest house price data from CoreLogic shows, in February, Jindabyne's median house price reached $1.36 million.

Most of the growth happened in the last 12 months, in which property values rose 72 per cent.

Amid the boom, home owners have been cashing in and turning a major profit, according to Michael Henley, director of Snowy Mountains real estate agency Henley Property.

"We've had a lot of people that are selling up or leaving this area because they're getting an amazing amount of money. A lot of people have been going down to the [NSW] South Coast," he said.

"So there's been quite a few people who have been selling up [and putting] $2.5 to $3 million in their back pocket."

According to CoreLogic's recent Pain and Gain report, 98.1 per cent of sales in the Capital region, which includes Jindabyne, made a profit in the final quarter of 2021. Sellers in the region made a median gain of $330,000 on profit-making sales.

As property prices have risen, so too has the price of holiday rentals.

Analysis by short-term rental data firm Airdna found prices for holiday rentals in Jindabyne are up 25 per cent for future bookings in July this year, compared to last year.

Holidaymakers will pay an average $726 per night for an Airbnb or Stayz rental in Jindabyne this July, compared to $580 in July 2021.

While it's important to note travel was limited due to lockdowns during last year's winter season, Airdna shows this year's prices are 33 per cent higher than pre-COVID times. In July 2019, the average daily rate was $545.

The price rises are more modest either side of July, with the average daily rate up 4 per cent in June and 5 per cent in August. The data shows the price of a holiday rental in September is down 9 per cent compared to last year.

Mr Henley said it's practically impossible to secure a permanent rental in Jindabyne, as most rental homes become short-term holiday rentals during the snow season.

"It's incredibly difficult and at this time of year it's basically impossible - you can't get a 52-week lease at the moment because as we lead into winter, anybody who's just buying something they're going to rent out, they put it out there for 16 weeks [as a holiday rental]," he said.

He said a home that would normally be listed for $700 per week as a rental property could fetch around $1700 to $1800 per week during winter.

Jindabyne Chamber of Commerce president Olivier Kapetanakos said many business owners are struggling to find accommodation for holiday staff.

Some Jindabyne workers reside in neighbouring suburbs or towns, such as Berridale, but rents are rising there too.

"Families have been priced out. I know of one family who had been established very well in Berridale for a lot of years ... they had to leave because the landlord decided that the $350-odd a week that they were paying was not enough," Mr Kapetanakos said.

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Mr Kapetanakos said the rental squeeze had been going on for some time.

"Being part of the chamber, I get to meet a lot of business people and one of the things that I noticed earlier on is that the successful older businesses, established businesses had all bought property in the past [for] staff accommodation and that to me leads, I think, to the paradox that we've always had the issue," he said.

"I think there are some people that are opening up their homes and renting out individual rooms ... that's becoming a little bit more popular."

Mr Henley said during the region's peak of growth last year, sellers could "put anything on the market and it would sell for way beyond expectations".

But the property price boom is passing.

"We're past the FOMO market. We're in the 'fear of paying too much' market now," he said.

"Right now we're going back to more of a traditional market where this time of year we're selling lots of apartments and holiday-style houses in Jindabyne."

The Pain and Gain report stated while tree change and sea change markets have seen relatively high rates of capital growth since the onset of the COVID-19 pandemic, the rate of growth in popular regional markets has started to ease in recent months.

"Higher average mortgage rates, rising advertised stock levels and affordability constraints are already seeing values slip across Sydney and Melbourne and the impact of interest rate tightening may also affect profitability for more recent buyers," CoreLogic's Eliza Owen said.

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