Sydney, Australia | Availability-Legislation Link for Extended-stay

Rosie Thapa

Industry News, Relocation and Global Mobility, Situ News, Situ White Papers, Travel, Travel News

As other countries, Sydney has been defining its laws around short-term accommodation rentals in residential property over the last few years. Similar to New York, Sydney has rules that include a differentiation between hosted and non-hosted accommodation, where the latter has a limit of 180 days per year unless the stay is 21 days or over.i  If the host is present (even in an annexe building) a residential property can be rented all year in Greater Sydney. This limit of 180 days does not apply in other areas of New South Wales.  

Sydney, Australia | Exploring the Availability-Legislation Link for Extended-stay Accommodation

Approved tourist and visitor accommodation development, such as serviced apartments, bed and breakfasts, hotels, motels, camping grounds, or caravan parks are not required to be compliant with these laws and can continue to be listed on booking platforms. 

As in other parts of the world, regulation is, in part, driven by the effect on stretched housing markets of short-term rentals being offered on digital booking platforms. An opposing point of view to limiting short-term lets is that those renting out their home.

in this way can earn a much-needed extra income at a time when fixed-rate mortgage interest is high. This allows people to pay their mortgage and stay in their property, which maintains the diversity of accommodation inventory. ii  

Availability remains strong within the commercial short-term rental sector, with increased travel post-pandemic undiminished. One accommodation partner mentions that traveller demand for bigger spaces remains high, with a preference for accommodation that allows guests to work from home and to seamlessly mix work and leisure. Good wi-fi, a pool, and a gym were all high on travellers’ requirements list. 

In terms of available inventory, this partner is bringing on more stock every week due to the  strength of demand in Sydney and the increased confidence of property owners. They note that Victoria has been slightly less quick to bounce back and that there is a lack of availability in Brisbane, which has high rates of occupancy. Another partner mentioned that larger room types are in more demand and sell out more quickly, but that this is also true for one-bedroom apartments at their Sydney properties within 10 km of the central business district. Most, they said, are sold out three months in advance. 

With hotels across Melbourne, Sydney, and Brisbane, these partners are looking to increase inventory in various locations, including more key areas of Sydney, particularly the west. They note that the strength of business demands this growth trajectory. In terms of events in Sydney, any global conference, particularly in tech or pharma, causes high demand, as do student arrivals. Many students now have significant budgets and pay up to and above $300 a night for a one-bedroom or studio suite for a period of months. 

Overall, the strength of the market does not show any sign of slowing down and, like Singapore, is driving investment into residential long-stay serviced apartments, which remain unaffected by the laws that limit the short-term vacation rentals of individual properties.  

Again, like Singapore, the extended-stay apartment product is gaining increased traction, with a noticeable upturn in travel and in the demand for roomier places to stay after the pandemic. Buildings that include leisure spaces are likely to be popular with guests staying in Sydney, as travellers blend business and leisure trips into one stay. 


The content of this white paper and subsequent blog posts of the same content is only accurate as of the date of the white paper’s release and will constantly evolve due to the ever-changing nature of the local property market. For the most recent update please contact your Accommodation Specialist at Situ. 

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Do you need a stay in Sydney? Do browse our selection of great Situ serviced apartments in Sydney, or pick up the phone and give one of our friendly accommodation specialists a call at +44 (0)1392 690 079.