While rising charges and fluctuating occupancy rates means there is often much discussion about the viability of caravan parks, there would appear to be no shortage of potential buyers when one comes on the market..
A great example is the Tweed Heritage Caravan Park at Chinderah in northern New South Wales, which has just sold for $6.08 million.
Real estate agent, Ray White Commercial, said it represented a once in a lifetime option to acquire the fully operational business set up on a substantial parcel of land.
The Tweed Heritage Caravan Park has 147 caravan sites, two large four-bedroom residences, a manager’s office, and covers an area of 40,100 square metres. The gross income potential is estimated at $1 million.
“We had 76 enquiries during the marketing campaign and 15 offers to purchase were received,” said Sam Johnson from Ray White. “Caravan parks and manufactured housing estates are playing an increasingly important role in meeting the housing requirements of the ageing population in Australia.”
The Property Observer publication reports that institutional investors and “cashed up private investors” are looking at this sector of the market.
It reports that the adjoining Chinderah Lakes Caravan Park was recently sold for just under $4 million to the same Sydney-based private fund that bought the Tweed Heritage Caravan Park. The Royal Pacific Tourist Retreat and Caravan Park in Chinderah was also recently sold for $2.5 million.
Comment below.
Lets hope they don’t get too expensive and look after the Grey Nomads on limited budgets.
I’ll wager London to a Brick that the Chinese have their finger in it some where They are the only one’s with the money…….Anyway How can caravan parks make Money ? They should be called Cabin parks
Investors are only buying them so they can close them down and sell for resorts or apartments
I am assuming that caravan parks, whilst a business would be zoned as residential land. Soooooo, me thinks, that in a few years or less that the owners/ developers will close the parks and apply to build cluster home style living on the said land.Most councils are looking for as much condensed living, therefore gaining many $$$$ from rates as possible.
Jay&Dee
How do we know this will remain a caravan/cabin park? There used to be one in Banora Point (same general area) and residents were subjected to intimidation to get them to leave. The owners wanted to re-develop the land.
Accountants have been buying caravan parks for some time now. Why wouldn’t they. The returns from parks in popular areas especially seaside have generated enormous cash returns for those in the industry. Freehold land of course will generally only increase in price so a double up on profits. Even those who lease crown land parks have made an absolute fortune despite not owning the land.
I would imagine much of this would be the prime land location. Just a beautiful spot..
say goodbye to that park as developers move in
saw on TV on the weekend that 2 x private equities are buying up caravan parks ( have approx 30 bewteen them so far) around various areas in Australia and turning them in low cost cabin/resort type accom for retirees and getting rid of the powered and camp sites in the parks.