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Caravan Park Market Review - June 2010
The commencement of this year’s tourist season was again heavily dependant on the quality of the weather in the southern states compared to that in Queensland. In spite of a lengthy wet season, initial reports suggest that it has been an exceptional start to the 2010 season as Caravanners progressively make their way north.
Read more...Resort News Magazine - Issue June 2010
Most motel owner/operators/managers will tell you they are rarely in the onsite residence. Maybe this is why the motel residence is the most forgotten about, ignored, and neglected, part of many, many motel complexes. In “the good old days” motels were typically built with a lovely 3 or 4 bedroom home above or beside reception where the owner/operators (who were often the one’s having the motel built) were going to live with their children, and operate the motel business as a family concern. The motel was not only built as a place of business but also a home for the family to live and run the operation
Caravan Park Market Review - June 2010
Monday, 21 June 2010 11:45
The commencement of this year’s tourist season was again heavily dependant on the quality of the weather in the southern states compared to that in Queensland. In spite of a lengthy wet season, initial reports suggest that it has been an exceptional start to the 2010 season as Caravanners progressively make their way north. Outback regions in particular have benefited as a direct result of the wet season with an influx of tourists enjoying the abundance of wildflowers and birdlife.
We are optimistic that the remainder of the season will be strong and extend into the traditional shoulder months of October/November. Inhibiting factors faced by operators over the past couple of seasons seem to have abated somewhat. This is due in the main to increased confidence within the economy and to a lesser extent the price of fuel having stabilised.
As a result of improving sentiment over the past 12 months the Caravan Park Market has, as reported in earlier editions, continued to gain traction. This more positive outlook is supported by a number of Parks having either recently sold or now under contract. A number of others Parks presently for sale are also experiencing high levels of enquiry.
However, increasing interest rates continue to be of concern to buyers. As yields for Parks have remained relatively strong in comparison to other market sectors, any increase in interest rates has had a diminishing affect on a buyers yield gap. Expectations are that interest rates will continue to increase for the remainder of the year with many economists predicting a .25% increase each quarter to the end of 2010 - a projected base rate of 5% (up from 4.5% at present).
We continue to be of the view however that the Caravan Park Market will hold its own in 2010 as demand will counteract the negative impact of increasing bank interest rates and thus keep yields/returns at current levels.
On another note, we’d like to thank the Berzinski family for the opportunity to be involved in the successful sale of their Park, the Big4 Port Douglas Glengarry Holiday Park, earlier in the year. To act on behalf of the Berzinski family, who have been a major factor in the success of the industry in the Far North region of Queensland for 20 years, was an absolute pleasure and we wish them all the best in their future endeavours. We’d also like to welcome the new owners, Max and Margie Brady, to the Queensland Caravan Park Industry after a number of years in the WA Caravan Park Industry. We wish them well and trust they will enjoy their new venture.
To our valued client’s we wish you all the best for the remainder of the 2010 Tourist Season.
New Website – QTHB now have a new and improved website allowing greater exposure to our clients, through easier navigation and features such as video presentations. To visit our site visit www.qthb.com.au
For any owners wishing to discuss the market at present or for an obligation free appraisal on the value of your Park please do not hesitate to call one of our experienced brokers.
Market Updates will continue to be issued on a quarterly basis in order to keep clients better informed of the trends in this continually changing market.