The Westview Caravan Park (Australia) is for sale, offering an opportunity for investors to tap into Dubbo’s thriving tourism sector, including the well-known Taronga Western Plains Zoo.
The 10-acre property boasts 18 cabins and an array of outdoor facilities, such as a swimming pool and barbeque areas with fire pits and gas heaters, ensuring year-round enjoyment for visitors, according to a report by the Real Estate View.
According to a report from Ray White Commercial, there has been a strong demand for caravan parks as domestic tourism flourishes, with accommodation business brokers Julian Garness offering the Dubbo property for sale at $3.8 million.
Garness highlights the appeal of caravan parks as they provide a profitable blend of a desirable lifestyle.
Westview Caravan Park has received a mix of buyer inquiries, including those from the corporate tourism sector and accommodation companies looking to expand the park and facilities.
There have also been inquiries from families seeking a change of lifestyle through the purchase of the park. The park, located at 13R Narromine Road, has ample room for growth, with land included to potentially increase the number of cabins from 18 to 36.
With a combined net profit of just under $1 million in the last two years, the return on investment for a new buyer is estimated at 13% to 14% per annum.
Garness notes that the area around Dubbo offers more than just the zoo, with a growing industry and infrastructure, including solar farms, light rail, and other significant projects underway or in the pipeline, providing a boost to the accommodation businesses.
The sale of the Westview Caravan Park also includes a spacious four-bedroom house for the managers or owners to live in.
Vanessa Rader, head of research at Ray White Commercial, explains that over the past four years, the demand for caravan parks has been on the rise, with a notable increase in domestic tourism in 2022 leading to strong improvements in hotel occupancy rates, including caravan and camping sites.
The national occupancy average (for caravans, camping, and cabins) in 2022 was 61.5%, exceeding the 2019 result of 49.4% prior to COVID-19.
The rise in caravan and RV sales over the last ten years has also played a crucial role in the growth of this market segment, with increasing demand leading to rising prices and growing revenue for caravan and camping sites, reaching 43.2% in NSW to $46.
The long-term potential and continued growth in domestic tourism make caravan parks an attractive investment opportunity, particularly with the added benefit of large land parcels providing future possibilities.
However, Rader cautions that the increases in interest rates may result in some adjustment in values and a reduction in investment activity in 2023 as quality assets continue to be tightly held.