Active listings
Findings in Table 1 show that Airbnb hosts have suffered significant reductions in listings with the outbreak of COVID-19 pandemic but losses varied across different room types. Overall, Active Airbnb listings in Sydney dropped to 5,298 in February compared to 8,461 in January. In March, there are only 4,979 active listings, a reduction of 41% compared to January. This decline would reflect domestic and international border closures and cancellation of domestic travel for purposes other than essential work.
The “entire home” and “shared room” suffered the highest reduction in listings (42% and 74% respectively, Table 1). This is understandable given COVID-19 is a highly communicable virus and social distancing measures were enforced in March. A “hotel room” can be safer than other room types when considering COVID-19 transmission, and whilst listings dropped significantly by 31% in February compared to January the category witnessed a 17% growth from February to March for an overall decline of 19%. The “private room” also has a 39% decrease from January to March.
Table 1: Active Airbnb listings from January to March 2020
|
January
|
February
|
March
|
Overall number change January to March
|
|
Number
|
Average Price
(AUD$)
|
Number
|
Average Price (AUD$)
|
Number
|
Average Price (AUD$)
|
|
Entire home
|
6321
|
275
|
3756
|
242
|
3691
|
219
|
42%
|
Private room
|
1996
|
79
|
1435
|
85
|
1214
|
78
|
39%
|
Hotel room
|
67
|
245
|
46
|
209
|
54
|
179
|
19%
|
Shared room
|
77
|
44
|
61
|
39
|
20
|
42
|
74%
|
SUM
|
8461
|
|
|
5298
|
|
|
4979
|
|
41%
|
|
|
|
|
|
|
|
|
|
|
In fact, in January, the Sydney Airbnb market was prosperous with a total revenue of 13 million dollars including 11 million dollars for host as estimated in this study. Six suburbs have an income more than 0.5 million dollars on average per month in January Hosts from the suburbs Pyrmont-Ultimo and Haymarket-Rocks in the inner city as well as Bondi beach have a total income of more than 0.7 million each (Figure 1). The suburbs - Bondi junction, Palm beach and Manly are popular tourist areas and/or shopping centers with a total income over 0.5 million respectively.
Table 2: Average income of platform and hosts for active listings from January to March 2020
AUD($)
/night
|
Entire home/apt.
|
Private room
|
Hotel room
|
Shared room
|
platform
|
hosts
|
platform
|
hosts
|
platform
|
hosts
|
platform
|
hosts
|
Jan.
|
43.0
|
320.8
|
12.2
|
90.7
|
33.6
|
250.8
|
6.3
|
46.9
|
Feb.
|
39.5
|
294.8
|
13.0
|
97.3
|
28.3
|
211.3
|
5.5
|
41.4
|
Mar.
|
36.1
|
269.7
|
12.0
|
89.5
|
24.4
|
181.8
|
5.8
|
43.6
|
However, with the increasing positive cases in Sydney and Australia’s travel bans, Airbnb hosts’ income loss was about 8 million AUD less and 70% lower in March than that in January (Figure 2). The inner city of the Greater Sydney has been hit the hardest with a 47% decrease of hosts’ income comparing March to January. This area used to have the most concentrated active Airbnb listings as it not only has the bustling shopping centers but also many popular tourist attractions including Sydney Opera House, Sydney Harbor Bridge and China Town. Unfortunately, this area has also been reported to have the high density of Covid-19 confirmed cases (154 cases by 15 April 9). The other tourist attractions and shopping centers such as Bondi junction and beaches with the highest 177 confirmed cases also has an 80% decrease of income from January to March 2020.
Our findings further show that suburbs with high concentration of Chinese ethnic groups have also been hit hard. Hurstville, which is known as a Chinese concentrated suburb, has witnessed a 64% decrease in March compared to January. That could be a result of a decline in international students with associated friends and family when the Australian government issued a travel ban on travelers and visitors from China on 1 February 10.