The demand-driven surge in site fees means caravan parks are being seen as a really solid investment, according to a leading commercial real estate expert.
And Vanessa Rader, Head of Research at Ray White, says that – with caravans and RVs continuing to grow in popularity – the trend looks set to continue.
“With demand for these vehicles continuing to rise, so too has the cost to occupy sites across most of the country,” she said. “With increased occupancy comes rising prices … revenue achieved in caravan/camping sites growing as much as 43.2% in NSW to $46/site.”
Ms Rader said Tasmania was currently home to the most expensive sites in the country at $61, representing a 26.7% annual increase.
Van park occupancy is up ... and so are site fees! PIC: Cizza
“The national occupancy average (for caravan, camping and cabins) for 2022 sits at 61.5% well ahead of 2019 (prior to Covid-19) results of 49.4%,” she said. “Looking by state, Tasmania and Queensland have continuously averaged above the national rate, while Western Australia has bucked the trend showing high occupancy during the lockdown periods in other states.”
Ms Rader said Western Australia had enjoyed the most consistent level of occupancy over the past few years. Despite border closures during Covid-19, demand stemming from local visitors was instrumental in growing average rates over the past few years to now average $52/site, a 16.6% annual increase.
She said Queensland was home to more than a quarter of all caravan and RV registrations and has recorded strong increases in revenue in these parks, currently averaging $42/site up 36.7%.
“Looking ahead, the viability of caravan parks as an investment looks sound particularly due to their long-term potential, coupled with domestic tourism levels continuing to increase as the drive segment grows,” Ms Rader said. “The current high cost of airfares and accommodation has aided in the uplift in demand for occupiers, keeping vacancies low and the prospect of continued rate increases high.”
The Ray White expert said the large land parcels associated with these sites was also attractive to buyers, opening up future opportunities and alternative uses as well as their often positive cash flows stemming from high occupancy and growing returns.
“However, the increases to interest rates may result in some softening in values and an expected reduction in investment activity during 2023 as quality assets continue to be tightly held,” she said.
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Don’t use them for that reason.
Caravan parks fees have priced us out or their market. They need to stop lobbying against free or low cost sites because those of us on low incomes simply cant afford their fees
Just don’t stay at van parks
I have found some are just greedy and some are reasonable.
Max, you are correct. Stayed at a van park in Townsville over Christmas period and their rate stayed constant $38 a night. Van parks asking $65- $85 a night I just give a BIG miss, now that is greed. Still trying to figure out what extra van parks do for people when they hike their rates during what they call “peak periods”.
We look for showground, pony club or sporting club sites in our travels. As long as facilities are clean, these alternatives are a great moneysaver. Too bad about petrol costs tho.
Yes when my Health, lets me, get rolling again I will be using Low Cost / FREE CAMPING or Shiow Society Grounds. I do not need, all the FLASH jumping Castles, etc, just Quiet & clean Caravan Parks with Clena Amenity Facilities. SIMO.
Love some of these comments. It’s like businesses are not allowed to make a profit. Lots of the Free Campers love caravan parks for their facilities when needed, but still whinge when they have to pay. Low income, but spent $150K + on the rigs. Tight A*%#s.
Hi just because they were able to buy these units, does not say they are rich, just careful how they use their money to survive. We are self-funded but by no rich, but we live buy our means so if free camping helps us to save, we do it we do go to caravan parks if not a rip off price Gus
Well said Gus, this is our situation too.
Which caravan park do you own Ron?
Yes we have a nice vehicle and caravan, doesn’t make us rich. We are self funded and living on less than the age pension. We do a mixture of free/low cost and caravan parks. If that makes me a tight a*%# so be it.
If you lay out the kind of money a park costs you are certainly entitled to make a return. All businesses are entitled to make money. If businesses don’t make a return they will no longer be there. That goes for all businesses
No one’s saying they don’t deserve a return. Most are just saying that the rate of return is probably too high. Baked beans are around $2 a can wherever you go and the price doesn’t double at xmas or easter. Using the baked beans analogy why are some parks $30 a night and some $50 a night. Expenses can’t be that differential between the two. Then they throw in the peak season rates which are blatant profiteering. Just saying mate.
Parks are constantly criticised for poor amenities and facilities. So they improve them . . Then they are criticised for high prices…… so the let the amenities etc fall into disrepair. Return to start.
There’s nothing in a caravan park that interests us.
People in caravans looking at other people in caravans.
We choose to bush camp not because its free but because of the freedom.
Hope you clean up after yourself and take all rubbish with you
As we do, I am sure they would
Hope you don’t put your prices up in peak season
Don’t stay in them anymore, priced us out of the market.
‘User pays’ is a fair and reasonable principle. Don’t expect local businesses, local rate payers and tax payers to subsidise your travels.
There are very few true caravan parks, now most of them have cabins.Why isn’t the Motel association screaming.. If the trend keeps going, they will get rid of van sites .And where do we go from there, I have no problem with them making money but as long as it’s a FAIR price.Just not greed.
There are plenty of cheaper alternatives
I travel solo and I pay the same price as two people at a caravan park as I am told it’s per site. So my choice as self contained to have freedom and meet a lot of lovely fellow travelers is to free camp.
We have travelled 75% of Australia and free camp in our self contained van, so great to be in the bush. The only time we caravan park is for staples ,washing, & food. As for fuel we paid $3.75 ltr at Cameron’s Corner on the way to the rock. Take it or leave it.
Wow.
Inflation running at just under 8% and park fee increases of 30 to
40%. Many businesses have done it tough the last couple of years but many have not increased fees by anywhere that amount.
I guess that demand will ease, will the price???
The problem is politically driven with land tax costs causing parks to close in particular with beach located parks. Soon van owners will be Way in excess of sites available in parks, Govt greed will kill the caravan RV in the end. Effectively crushing small business relying on Grey Nomads and families
No …price is inelastic..goes one way ,up..forget Keynesian economic theory
I agree prices don’t come down
Sorry industry association but don’t count on me to finance your jumping castles. In one particular 200 night trip across Australia and back, we spent a grand total of zero dollars and zero cents on camping fees. In the past year, the total remains at zero dollars and zero cents and only when hell freezes over will there be any change.
But it is good to hear there are lots of travellers willing to pay your extortionate charges, simply because it means less demand for free camping.
We still travel but try to use free or minimal $ camp grounds where possible or if parks in the area are priced too high. The cost of fuel also means we need to save in other areas.
Further to previous comment. Free or low cost camping allows us to spend a bit more in the surrounding towns.
Yes it will slow down my use of Caravan Parks & We will do mor FREE CAMPING where possible & Safe to do so. There was a few Low Cost Caravan (OVERNIGHT ONLY ) premises developed as long as your Rig was Self Contained { Have it’s Own Ensuite and Grey Water Tank for the Kitchen Sink Waste Water ETC.} also there is more Caravaners using a Town’s / Shire Council Local Show Society Show Grounds where they may have facilities for Caravaners, this is good as it brings in money to the Towns and Shires. Cheers : Simo.
Yeah, increased park fees have certainly changed our habits. Much more ‘free’ camping!
Looks like we will use more rifle clubs, show grounds, farm stay, and most of all free Camps, bush camps I will not pay any more then 30 max a night. The biggest reason people use the park washing machine and we have ours on board. Stuff the Caravan Parks People will vote with their feet and set up for bush camping. I don’t need the Caravan Parks at Al
Accommodation prices are out of control… Apparently profits are the most important factor and those of us who are not extremely affluent, are simply expendable nuisances… People will put up with life’s challenges for as long as they can, but sooner or later the top one or so percent, of obscenely rich sociopaths will be held accountable… Remember the French and Russian revolutions…
Ron I personally know a park owner in South Australia, making a living. Give me a break. They net about 1.2 to 2 million $ a year. Not a bad little earner for people just like you making a living !!!!