Balga’s hidden gem: $135-a-night donga raises concerns over tourism and long-term rentals being shortchanged

Suburban short-stay venues — including this $135-a-night donga in Balga — are undermining the rental market and may not give tourists the holiday experience they expect, claims the peak hotel lobby. The Australian Hotels Association said glossy adverts on short-stay rental sites are misleading travellers into staying in areas with limited amenities and significant social problems. Suburban areas with short-stay rentals — including homestay venues offering private rooms in the host’s home — includes Gosnells, Beechboro, Champion Lakes, Westminster, Byford and Baldivis. Balga - which is shedding its longstanding image as one of Perth’s roughest and toughest neighbourhoods but remains one of its most disadvantaged areas - has a few short-stay options. It includes the $135-a-night mining-style donga set in the courtyard of a battleaxe property. Described on accommodation site Booking.com as “your cosy, private retreat in the heart of Balga,” the self-contained donga comes with a double bed, kitchenette and modern bathroom. Breakfast is not provided and children, pets and parties are banned. “Perfect for solo travelers or couples, this self-contained studio offers a peaceful escape with everything you need for a relaxing stay,” said the advert. “Tucked away in a quiet residential area, you’ll enjoy privacy and tranquility while still being just a short drive from shops, cafes, parks, and public transport.” “Whether you’re here for work, a weekend getaway, or a longer stay, this peaceful Balga studio is the ideal base to rest, recharge, and feel at home.” The owner did not respond to calls. AHA chief Bradley Woods said some glossy listings were distorting tourist’s perceptions. “Tourists booking heavily curated listings may believe they are choosing typical holiday locations, only to find limited amenities and significant social challenges,” he said. “Sustainable tourism means aligning visitor expectations with reality and protecting local housing supply. That balance supports Perth’s reputation.” AirBnb declined to comment and Booking.com did not respond to contact. But analysis by The West Australian shows the short-stay accommodation, which is priced between hostels and hotels, offers a missing piece of the accommodation market Most suburban offerings are homestays — which involve a private room within the host’s home or a self-contained unit on site — and usually cost between $95 and $150 a night for a double room. A double room at a three or four star hotel room however is usually priced at about $150 to $200 a night. This includes a room with beach views at the four-star Cottesloe Beach hotel, which costs $170 a night. The five-star The Melbourne Hotel costs $208 per night for a king room over Christmas. The analysis shows short-stay accommodation, including homestay options which offer a private room in the host’s home, tend to offer better value for money than hostels. Spinner’s Hostel in Northbridge offers a bunk bed in an eight-bed mixed gender dormitory for $69, breakfast included. Hostel G on Stirling St in the city costs $94 for night in a similar dorm. But Mr Woods said the suburban short-stay venue were also undermining Perth’s long-struggling rental market. “(These) listings are increasingly concentrated in suburbs that can least afford to lose rental homes,” he said. “Each dwelling shifted to short‑stay removes a potential long‑term rental for a local family.” Perth’s rental market remains in chronic shortage, with the Cotality group index indicating it is 1.1 to 1.3 per cent vacancy rate, which is well below the 2.5 to 3 per cent of a balanced market. Airbnb has long claimed its venues have minimal impact on the rental market. It claims it found 88 per cent of Australian Airbnb hosts surveyed would not offer their homes on the long-term rental market if night caps were introduced or lowered. Its research said that if each host were limited to a reduced number of nights in which they could rent their property, they still would not put their home on the long-stay rental market. “Only 12 per cent of Australian Airbnb hosts surveyed said they would likely put their home on the long-term rental market if night caps were introduced or lowered,” said Airbnb. Michael Crosby, Airbnb head of public policy, Australia and New Zealand, said any effort to curtail shortstay rentals would not boost the traditional market. “The research clearly demonstrates harsh restrictions like night caps are not effective in solving our housing issues and simply hurt those trying to earn some extra money to offset the cost of living,” he said.