Caravan Park Business Valuation

Caravan parks are very popular businesses to buy in Australia. they represent a “dream ” of getting the perfect balance between lifestyle, getting away from it all, whilst still making a great profit, and sitting on a parcel of land which may one day be worth a lot more money than the price originally paid.

Many ex-farmers have traditionally purchased caravan parks as their retirement business, they see the chance to move to the coast in a pleasant seaside town as the perfect business after farming. There have also been corporate buyers entering the caravan park market since 1995, particularly in boom towns close to mining areas, such as Gladstone, Mackay, Kunannurra, Port Hedland, Karrratha, and Darwin. These sorts of locations are often used to house workers rather than holidaymakers.

Sometimes the highest and best use of the land upon which the caravan park sits changes.

As a site becomes part of the growth of a town and the value of the land increases, it may be that the caravan park is purchased and sold and a resort or housing subdivision replaces it. Whilst this is sad for sentimental reasons, it is great news for the outgoing owners, as they receive a wonderful cheque for their capital gain!

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