Are luxury hotel rooms in the Sydney area available at a discount during the lockdown?

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at a cheaper rate than they'd normally be offered?

Hard to tell. There is not really a "normal" price for hotels in urban areas any more and the prices fluctuate a lot depending a lot on supply & demand. Before the pandemic, pricing was extremely dynamic and it was not unusual to see room prices go up or down by a factor 3-4 in matter of days. One night last year a dinky Holiday Inn in the Boston area went up to $1400/night for a room that was $120 a week earlier.

This being said, current prices for 5-star in downtown Sydney seem on on the lower side of the spectrum but not in "bargain" territory. Most quote around US$150/night for starters, but once you are in a nicer room plus taxes+fees it'll probably end up in the US$200-$250 range. That feels "normal" for low-season.

FWIW: may favorite place to stay in Sydney is an ocean front room in the Crown Plaza at Coogee Beach: spectacular views from the balcony. However, it's certainly not a bargain at the moment.

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Some. I've promoted some on beatthatflight.com.au (my site) and on the FB page when applicable (I usually tend to focus on flights but there have been some amazing ones).

For example, the 5-Star Hyatt Regency Sydney from $179 for a King Room, with Free Cancellation at New Years and on weekends at Christmas period, was/is a great price.

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