The Changing Role of Caravan Parks as a Housing Alternative and Implications for the Real Estate Market

Caravan parks in Australian capital cities have provided a source of housing at the lower end of the market for many years. This includes opportunities for both private rental and home ownership, and this form of housing type is considered to be an accepted and viable private sector alternative to low cost housing. However, emerging trends in the property market have threatened the viability of caravan parks, which are commonly valued on an income basis. For example, a recent phenomenon has been the closure of caravan parks for higher and better land uses, such as medium density accommodation. This is partly due to typical caravan park attributes, which are commonly large level parcels of land located on main roads with accompanying high exposure. In order to maintain or increase income levels, some caravan parks have focussed on more profitable short term tourist opportunities rather than traditional long term housing. Whilst the closure and conversion of caravan parks raises crucial questions for Australian social and housing policy, there are also implications for the broader property market. This paper examines the changing role of the operation of caravan parks, with the emphasis placed on their economic feasibility. The research is based on a survey of 30 caravan park operators in Queensland, Australia. The factors influencing caravan parks are identified, and suggestions to address the changing role of caravan parks are canvassed.