Sydneysiders with apartments listed on Airbnb are jacking up prices more than 10-fold for New Year's Eve, with price tags higher than the city's best-positioned luxury hotels.

Rooms with a view command the most egregious increases. A two-bedroom apartment overlooking Darling Harbour, advertised for $229 a night in early December, shot up to $998 on Christmas Eve and $2499 on New Year's. Another Pyrmont unit increased by 1500 per cent, from $148 to $2000 plus fees.

One host, Pauline, usually offers a room in her shared Woolloomooloo apartment for $125 a night. But on New Year's it is listed for $1640. That's more expensive than a deluxe suite at the Shangri-la, with its panoramic views of the harbour and marble bathroom (although a minimum four-night booking is required for the New Year's period).

Pauline, who did not want her last name used, said she had not received any interest in the property since raising the price this week, but was not fussed if the room was booked. "We just thought – if we get it, we get it; if we don't, we don't," she said.

Sydney has more than 15,000 properties listed on Airbnb, ranking 10th worldwide. Hosts set their own prices and the company's manager in Australia, Sam McDonagh, said users were entitled to test the waters at busy periods.

"The market ultimately decides if the price they've set is fair," he said.

Hosts are also turning to professionals to manage their properties. One apartment in Pyrmont (asking price $2226 on New Year's Eve) was hosted by "Ed and Andy", which turned out to be Edward Howell and Andrea Bosca from Host Angels, an Airbnb management service.

The pair started their business a few months ago and take responsibility for about 50 properties in Sydney; liaising with tenants, exchanging keys and advising on listings.

Mr Howell conceded many holiday asking prices are deliberately inflated and will never be accepted. Owners with good vantage spots don't necessarily want to lease out their apartment, he said, and will price accordingly.

"A lot of those [listings] may not actually be realistic and may not be booked," Mr Howell said. "But you would definitely expect to see more than double the nightly price … double or triple at least. More so for places that have views."

Many homeowners only list their property for a limited period over Christmas and New Year's, and use the profits to fund their own vacation. Airbnb takes a 3 per cent cut after a room is booked, but the remainder of the money goes to the host.

And it's not just homes being flogged in the online marketplace. For $28,000, a luxury motor yacht with its own crew will ferry you around the harbour on New Year's.

Inflation is also present at Sydney's premium hotels. A "superior king suite" at the Intercontinental on Circular Quay is available for $2500 on New Year's, compared to $315 normally, but it lacks harbour views. Over at the Shangri-la, rooms with views of Darling Harbour were available from $900 a night. Some hotels, such as the Hilton, are already booked out.