The recent sale of a caravan park WA for a whopping $22.1 million is a clear indication of the ongoing attractiveness of the sector for investors.
It’s part of a trend that is resulting in fewer ‘mom and pop’ caravan park owners as corporates pay attention to the increasing popularity of caravan parks since the pandemic struck.
There has also been a rise in the number of people looking for longer term accommodation in caravan parks … the highest demand reportedly coming from downsizers, fly-in, fly-out workers and homeless people.
Hillside Garden Village set on nine hectares of natural bushland in Mount Richon, 25 kilometres southeast of the Perth CBD, reportedly attracted multiple offers before it was snapped up by Eureka Villages.
There are more caravans on the road then ever and that is being reflected in the value of caravan parks. PIC: Ezza
The park boasts 200 licensed short and long-stay sites, including caravan sites, self-contained units and powered sites. It also has ablution blocks, a carwash bay, a swimming pool and a social club.
The sale is believed to have been helped by the significant proportion of permanent park homes sites, which are less exposed to seasonal variations in demand.
The Hotel Conversation publication reports that the sale followed an ‘Offers Invited’ campaign run by Knight Frank’s Tony Delich and Empire Commercial Property’s Craig White on behalf of local private syndicate.
Mr White told the Hotel Conversation that the park’s strategic location near Armadale Central Shopping Precinct and public transport enhanced its appeal.
“Hillside Garden Village is a well-established village and caravan park with an impressive trading history giving the buyer a profitable income,” he said. “However, the significant landholding also offers future redevelopment potential if desired, with the property currently zoned for residential uses.”
The West Australian newspaper reports that the sale highlights the changing face of ownership of sites once the domain of mum and dad operators, which it says are now primarily owned by big corporates and superannuation funds.
Dale Wood, director of Caravan Park Brokers Australia and New Zealand, told the West Australian that the sale price of the assets, and their revenue, had jumped significantly since the pandemic hit, largely because of the heightened demand for long-term housing.
“I have some parks that I have personally sold where (the owner) is getting more than double what they paid four years ago,” he said.
Mr Wood, who owns the Twin Waters Caravan Park in Mandurah, says the occupancy rate there had shot up from 50% to more like 90% in recent years.
And while acknowledging it was a sad trend, he said his site was transitioning away from caravans towards long-stay park homes, although he said he would never force anyone out against their will.
“The amount of permanent residents is increasing all the time, and we have people at our door all the time, asking for accommodation,” he said.
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