‘There’s only one’: The unexpected holiday idyll that boomed

Asking rents in Jindabyne surged over the past five years, as the hangover from pandemic-era demand and holiday popularity pressured accommodation costs in the alpine holiday idyll.

The median weekly rent for a unit in Jindabyne, a town in the Snowy Mountains region of NSW, jumped by 83.3 per cent in the five years to March, to hit $550. This was the second-highest rise in regional NSW, topped only by Newcastle’s Broadmeadow, where unit rent prices rise by 93.3 per cent to $580 over the same time.

Demand for properties in Jindabyne spiked during the pandemic as people holidayed at home. Credit: Photo: Alex Ellinghausen

By comparison, unit rents in Cooma, the snowy region’s largest centre, rose by 73.7 per cent over the same time period, but the median rent was lower at $330 per week. House rents in Jindabyne also ticked up 34.0 per cent over five years, to reach $700 a week.

Demand for properties in Jindabyne, which is around a 30-minute drive from ski fields in Thredbo and Perisher, spiked during the pandemic when more people were taking domestic holidays, say experts. A limited housing supply has also kept prices high.

“The fact that rents have gone up so much in five years, what it showcases is there isn’t enough rentals for the level of demand in these locations,” said Domain head of research and economics Dr Nicola Powell.

“If you think about what happened over that five-year period, obviously we’re capturing COVID … So the demand for rentals in areas like the ski locations of Australia would have been higher than normal because we were holidaying at home.”

KPMG Australia urban economist Terry Rawnsley said many regional markets got a “shot in the arm” through the pandemic, partly due to remote work.

“There was a big surge into markets like Jindabyne,” he said, noting the area’s high local amenities and natural beauty.

A big driver of demand for rental properties in Jindabyne are the skiing enthusiasts who temporarily swell the town’s population each year. Holidaymakers will often take out a four-month lease at heavily inflated prices. Seasonal workers follow, often renting in the town’s older-style units for the season.

“COVID obviously gave it a bit of a boost in the last five years,” said Michael Henley, the principal licensee of Belle Property Snowy Mountains.

Snow enthusiasts and seasonal workers swell Jindabyne’s population each year.Credit: Alex Ellinghausen

“We also have the seasonality … A unit that might rent for $500 or $600 on a 12-month lease turns up for a 16-week winter lease, and it can get up to $1000 to $1200 a week for those short-term rentals.”

Local agents report more people had been shifting to the region or had picked up holiday homes through the pandemic and beyond.

“We had a significant rise in people that moved to the area. We had a couple of strong, decent ski seasons, and there was a huge amount of properties that were purchased by holiday investors which took a lot of the full-time rental properties out of the market,” said Shannon Fergusson, the principal of McGrath Snowy Mountains.

Permanent arrivals include those who can work remotely. Jindabyne is prized for its snow activities, but also summer pastimes such as fishing and hiking.

Jindabyne is known for its snow activities, but has become a popular place to live year-round.Credit: Tourism NSW

“It’s been a supply and demand as Jindabyne’s become a more popular place for people to live year round. We’ve got a lot of younger people who stay 12 months these days,” Henley said.

“So, that’s just creating a great demand … You know, it’s like the coast, except there’s lots of coasts, and there’s only one Jindabyne.”

For those who have been living in Jindabyne over the longer term, however, the uptick in rents has added pressure, with some agents reporting people had moved out or to cheaper surrounding towns.

Belle Property’s Henley said five years ago tenants could rent a place in Jindabyne for $300 a week, but that same residence would be $550 now.

“For people who have been living here for a long time that have just been cruising along on a low salary, they are now finding it more difficult to rent,” he said.

Still, some local experts see that the tide may now be turning in favour of tenants, with more properties returning to the market.

“We’ve seen quite a few holiday, short-term holiday properties come back into the full-time rental market, where owners weren’t getting the returns over the last two years with poor ski seasons, so they’ve brought them back into the full-time market,” said McGrath’s Fergusson.

The challenging economy could also hamper the ability to travel.

“The economic downturn is probably putting a holiday beyond the reach of a lot of people,” said Olivier Kapetanakos, the president of the Chamber of Commerce in Jindabyne.

For the Snowy Mountains region as a whole, Domain’s Powell said the rental market was balanced between landlords and tenants. While it showed signs of “tightening,” she said this wasn’t surprising as Jindabyne was going into “that seasonally busy time.”