Demand for caravan parks skyrockets

• The COVID-19 pandemic and the hangover from hotel quarantines has seen the demand for caravan’s skyrocket
• The majority of caravan park sales have been sold off-market
• Tourism regions have benefitted from the closure of international and state borders, seeing increased visitors and expenditure from pre-pandemic conditions

The COVID-19 pandemic and the hangover from hotel quarantines has seen the demand for caravan sites skyrocket, according to an analysis by m3property.

Average cabin occupancy rates have risen over the past year to September in Western Australia, Tasmania, Northern Territory, and Victoria, according to m3property’s analysis of data from the Caravan Industry of Australia.

The majority of caravan park sales have been sold off-market with the most notable sale being Colonial Tweed Holiday Park & Home Park which sold as a going concern for $13.8 million reflecting a yield of 6.59%.

Sites benefit from border closures

m3property researcher Casey Robinson said some tourism regions have benefitted from the closure of international and state borders, seeing increased visitors and expenditure from pre-pandemic conditions.

“As the impact of the pandemic lingers, demand for caravan sites and cabins will remain strong.”

Ms Robinson said, “The Yorke Peninsula and Fleurieu Peninsula in South Australia saw an increase of 36.31%T and 21.55% respectively in domestic visitor numbers during the year to June 2021 compared to the year June 2019.

“WA’s Coral Coast recorded a rise of 20.66% while Gladstone in Queensland attracted an increase of 17.75%.”

Ms Robinson said, “NT recorded the strongest growth rising by a staggering 29 percentage points (pp) with occupancy at 74% while both WA and VIC recorded rises of 5pp.

“Strong growth was also seen for powered sites with NT recording occupancy of 62% equating to an annual increase of 40pp while WA rose by 16pp to an occupancy of 60% with both Tasmania and Victoria increasing by 8pp. Occupancy for powered sites in Queensland rise by 13pp to 74%, the highest of all states and territories during the September quarter.”

m3property Special Use national director James Ruben said the impacts on occupancy rates across the accommodation sector have been incredibly disparate.

“Some regional motels are busier than they have ever been. A stark comparison with some metropolitan hotels that are still struggling to maintain occupancy of 20%.

“Caravan parks have been one of the big winners.”

Overnight cabin stays

Ms Robinson said, “powered sites also had moderate growth with NT rising by 23% to $48 a night while Victoria recorded the second highest increase at 10% with these sites costing $44 per night.”