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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Most caravan parks are part of a chain these days.
As more Off Road RV’s are appearing with large solar capacity & ensuites, the need to stay in a caravan park should decrease.
Get out in the bush & use your ensuite as it was designed for.
I have stayed in parks that are largely permanent cabin residents and I often felt unwelcome. I support permanent park home style accommodation, but I also believe caravan parks should be just that. I have no problem with cabin accommodation for short stay tourists.
Corporate greed continues
Follow the money.
After traveling with our caravan for the past twelve years. I avoid staying in caravan parks when possible, and look for a bush camp or show ground instead. Caravan parks are becoming too expensive to stay in with all the bells and whistles which we personally don’t need. I do understand there are many who require caravan parks for their facilities, not having self contained vans.
The parks that are in a chain are mostly independently owned from what i have been told from a number of staff I have spoken to.
There are a number of parks around where I used to live, these were owned by council and had reasonable rates and managers, a group walked in, the managers were replaced and the rates increased by around 50% and from what i am told the amenities remain the same