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Latest News
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 - March 2008
Tuesday, 01 April 2008 00:00
The 2008 tourist season is almost upon us with it’s commencement contingent on the affects of an earlier than usual Easter, a well documented wet-season for most of Queensland and southern weather patterns.
Permanent Parks continue to perform well throughout Queensland, most notably in areas where there are accommodation shortages such as mining areas and strong regional centres.
With regards to the major issues of concern to the industry at present; the issue of roadside stays has been well addressed by the Caravan Parks Association of Queensland with good progress having been made. The association also continues to lobby the State Government regarding Land Tax in the hope that common sense will soon prevail. Previous concerns over the affect of fuel prices have abated as current fuel prices are now accepted as the norm.
The Caravan Park Market - Australia’s strong economic conditions have placed considerable inflationary pressures on the RBA of recent times with interest rate increases failing to slow the economy at present. These increases (most significantly 7 in the last 3 years) have had an easing affect on the Caravan Park market most notably in the past 12-18 months. It is generally accepted that expected yields/returns reflect the RBA’s cash rate at any given point in time (currently at an 11 year high of 7.25%). It would be fair to say that Interest Rate increases have seen some buyers drop out of the market and others take a more conservative approach to acquisitions.
Having said all this, current yields/returns from a vendor’s perspective are still extremely low in comparison to where the market was 3-4 years ago. This is allowing those presently selling or looking to sell to maximise their sale prices as the good news is there are still more buyers than sellers.
It would however be premature to say interest rates have peaked and that Caravan Park yields/returns will remain where they are as the RBA expects inflation to continue rising in 2008 before cooling in 2009. The next batch of inflation data is due in May with analysts forecasting another 25 basis point rise at that time.
Buyer expectations will continue to mirror interest rate increases or decreases as they seek to maintain a fair and reasonable gap between a purchasing yield/return and the borrowing interest rates ultimately imposed by the banks.
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.