If you have ever pulled into a holiday park and thought, “we could run a place like this”, you are not alone.
Caravan parks look straightforward.
But buying one well is a property deal and a business deal in the same breath.
Get the right park, in the right structure, in the right location, and you are buying a cash flow asset that can also appreciate underneath you.
The Caravan Park Market In 2025
Domestic travel is still the engine of this category, especially regional road trips.
Industry revenue is about $5.5 billion in 2025 to 26.
Profit is roughly $413 million, with average margins around 7.5 percent.
Australians took about 15.2 million caravan and camping trips in 2024, generating 57.1 million nights, and over 90 percent of those nights were in regional areas.
That is why strong parks are still trading hard, even with more competition on the edges.
A quick scan of caravan parks for sale in Australia will show you the spread between upgraded parks with clean earnings, and tired parks that are cheap for a reason.
If you want a wider benchmark, it is also worth looking at accommodation businesses for sale in Australia and tourist attractions for sale in Australia, to see how parks stack up on pricing and returns.
Why Caravan Parks Attract Serious Buyers
Buyers come into this sector for three reasons.
Stable domestic demand.
Multiple income streams on one footprint.
Property upside from land and improvements.
Most parks earn from:
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Powered sites.
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Unpowered sites.
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Cabins and self contained units.
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Add ons like laundry, kiosks, pet fees, tours, and late check outs.
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Longer stays where the location supports it.
Travellers aged 55 and over remain the largest and most dependable demand base, and they stay longer and return more often.
That repeat behaviour is what stabilises occupancy outside peak periods.
Step 1: Choose The Right Ownership Structure
This is your first filter, not a minor detail.
Freehold parks cost more up front, but you own the land, control redevelopment, and hold long term security.
Leasehold parks can be cheaper to enter and sometimes show strong cash returns, but every forecast depends on the lease term, rent reviews, and renewal rights.
Capital costs are a real barrier in this industry, so a weak lease can quietly crush returns.
Before you go further, check:
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Years remaining on the lease.
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Renewal options, and who controls them.
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Rent escalation method and timing.
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Make good or upgrade obligations.
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Any restriction on adding cabins or sites.
If the lease is short or the escalation is aggressive, either price that risk properly or walk away.
Step 2: Stress Test The Location And Demand Mix
Parks win because of travel behaviour, not brochure language.
Look for hard drivers:
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Highway access and visibility.
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Proximity to beaches, lakes, national parks, or touring routes.
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Regional employers like mines, hospitals, defence, or industry hubs.
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Event calendars that reliably fill shoulder seasons.
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Town growth and an infrastructure pipeline.
Then look at who stays, and why.
Healthy parks usually have a mix across sites, cabins, and some longer stay income.
Cabins and premium units have delivered the strongest tariff growth, so parks with modern stock and clear upgrade paths tend to outperform.
Also benchmark substitutes.
Short stay rentals have expanded sharply in regional and coastal areas, which can pressure nightly rates in high demand towns.
If you want a fast sense of how location changes performance, compare caravan parks for sale in Queensland with caravan parks for sale in New South Wales.
Step 3: Follow The Earnings Levers
Parks do not make money by being “nice”.
They make money through yield and utilisation.
Verify:
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Occupancy by month over at least two years.
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Average tariff by accommodation type.
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Length of stay trends.
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Repeat visitation.
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Add on revenue as a share of total income.
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Labour model, owner managed versus staffed.
If the vendor cannot show clean system exports that back the story, assume the story is optimistic.
Due Diligence Checklist For First Time Buyers
Financials
Get 24 months of profit and loss, monthly occupancy, and tariffs by category.
Confirm what is recurring versus one off.
If it is not in the bank, it does not count.
Assets And Capex
Walk every cabin and site.
Check roads, drainage, power, water, septic, pools, amenities blocks, and camp kitchens.
Deferred maintenance is the silent killer in parks.
Compliance
Confirm state caravan park licensing, Building Code requirements, and accessibility compliance.
If food is served, check food safety obligations too.
If you cannot evidence it, assume it does not exist.
Red Flags That Should Slow You Down
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Profit depends on cutting maintenance rather than improving yield.
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Cabins look tired but pricing assumes premium tariffs.
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Lease term is short or rent escalation is heavy.
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Occupancy only holds in one peak window.
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Council or planning limits block expansion.
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Local short stay supply is rising faster than tourism demand.
Two red flags, negotiate hard.
Three, walk.
What To Do Next
Start watching listings now, even if you are months away.
The best parks go to buyers who already know what good looks like.
Browse caravan parks for sale in Australia, then filter to your target state.
If you are weighing regions, review caravan parks for sale in Queensland, caravan parks for sale in New South Wales, and caravan parks for sale in Victoria to see how pricing and earnings shift by location.
Pick five parks and compare structure, location drivers, guest mix, cabin condition, and earnings after a normal year.
You are not buying a holiday.
You are buying a cash flow property business that can fund your freedom.