According to Ray White, 2023 saw $114.06 million changing hands across the country for caravan assets, following a peak in 2022 when over $300 million was transacted. However, in 2024, sales of mixed-use holiday parks— which offer cabins as well as caravan sites—have already exceeded $100 million.

Ray White Group Head of Research, Vanessa Rader, said there is a lot of interest in the sector, stating that “Northern NSW was a key location of interest together with smaller offerings in Queensland and Western Australian regional markets.”

Ms Rader said yields for these assets are mixed, with a wide variation of assets available depending on location and their features. “This year, transactions have ranged from as low as 6 per cent to upwards of 9.5 per cent, with private investors, family offices, and operator/occupiers the most active buyer groups,” she said.

She commented that investors have been interested in the sector because of the low start-up costs and potential for high returns. “The drive holiday market grew in popularity during the pandemic as travel movements were restricted,” she said.

“Post-pandemic we continue to see strong occupancy levels with the flexibility and relatively low cost attractive to many travellers. A growing ‘grey nomad’ sector in Australia has seen many retirees increase visitor nights, together with remote workers, however, couples and families still remain the largest occupier group with the ability to bring pets an added bonus.”

Ms Rader said occupancy has also been growing steadily, and in fact, “high in April achieving 59.8 per cent in NSW and 64.9 per cent for Victoria, down from January highs of 73.7 per cent and 71 per cent respectively,” she said. “Some of the smaller markets have also seen quality results, with Tasmania seeing occupancy reach 80 per cent earlier this year, while both Western Australia and South Australia saw occupancy around 60 per cent this last month and set new highs in revenue per site.

“Supporting the growth in occupancy anticipated for these destinations, has been the continued uptick in caravan registrations. In 2023, 765,150 caravans were registered in Australia growing 5.3 per cent in the last year, campervans also growing registrations by 4.9 per cent highlighting the ongoing requirement for holiday facilities such as caravan parks.”