17 Jul 2023
Words John Miller AccomNews

Megatrends in an evolving industry

ResortBrokers has been connecting caravan park buyers and sellers across Australia for 38 years. As one of the country’s longest-established commercial property agencies active in this sector, we can hitch you up with the right people whether you’re buying or selling.

Two megatrends we’ve seen over time have been the increasing corporatisation of the caravan park industry and the growing importance of manufactured housing estates (MHEs) to the sector. ResortBrokers has acted for vendors large and small, from family operators to big players, so we’ve seen the caravan park industry from all sides for almost four decades.

There are now some very large corporates, funds and investment syndicates in the caravan park space. And they’re on the acquisition hunt for good value. In 2016, ResortBrokers sold Tween Waters Holiday Park at Merimbula to ASX-listed Aspen Group. This year, we sold them Black Dolphin Motel & Apartments across the road. Aspen has now integrated the two sites and rebranded it Tween Waters Merimbula.

In the retirement space, major players include Lifestyle Communities, Ingenia Communities Group and Gateway Lifestyle Group, all of whom ResortBrokers has sold properties to. These groups are increasingly looking at MHEs.

MHEs, also known as land lease communities, grew out of the caravan park industry. They are increasingly popular because they are appreciably cheaper than traditional housing. MHE residents own their own manufactured home but not the land it occupies. Instead, they pay a ground rent to the estate operator. Because they pay rent, they are eligible for government rent assistance, which is unavailable to residents of traditional retirement villages who don’t rent since they own a strata title lot.

MHEs are even more in the spotlight today. With our country now in the grip of a housing affordability squeeze, and with rising cost of living pressures, Australians, whether they’re struggling families or cost-conscious retirees, are looking for more economical housing solutions.

MHEs are increasingly stepping into that gap. At present, MHEs account for only a tiny proportion of the total caravan park sector, but there’s no doubt they will be one of the largest accommodation growth markets of the future. This will create huge opportunity for existing owners of caravan parks because the relevant zoning is already in place.

If you’re one of those owners, it’s no good knowing all this if you can’t make the right connections. That’s where ResortBrokers can help. Our extensive networks of buyers and sellers in the caravan park industry, built up over several decades and constantly expanding via our nationwide reach of over 30 brokers in every state and territory, puts us in a privileged position to make introductions happen.

In the last five years alone, we’ve brokered the sale of more than 50 caravan parks totalling more than $144 million. Our landmark deals include the Barkly Homestead at Tennant Creek, Colonial Tweed Caravan Park (pictured above) in Tweed Heads South, Moama on Murray Resort in Moama, BIG4 Stuart Range Outback Resort in Coober Pedy, and the aforementioned Tween Waters Holiday Park in Merimbula.

This is a fast-moving market with opportunity aplenty if you know where to look and connect with the right people. As always, it pays to keep abreast of trends to see where opportunity lies. 

To learn more, visit ResortBrokers’ dedicated caravan park portal here.