As hard as it is for some park owners/managers to get their heads around, cabins (which are notoriously depreciating assets) have gone up in price.
At Cabin Connect, we see a huge range of cabins, manufactured homes, and onsite vans for sale and the trend we have been observing over the past 12 months is that prices are going up!
Some cabins have been listed for sale on the Cabin Connect marketplace more than once and in their latest listing, have increased in price on some occasions by over $30,000!
So, the question to be answered… Why are depreciating assets such as cabins going up in price?
The answer is simple, in Australia, we have a supply and demand issue. We have more people wanting to buy onsite cabins or residential lifestyle homes that we can supply. Therefore, demand is higher than supply and this pushes up pricing.
We also have a lag time in cabin manufacturing. Some of the leading manufacturers have extended delivery times due to demand and in some cases, due to delays in obtaining materials. Whether it be windows, flooring, timber or other essential materials to build a cabin, having just one delay, delays the whole project.
We have had the crisis of border closures. This means interstate travel has been reduced and international travel is almost non-existent. With people desperate to escape the confines of their own home, an onsite cabin or van is extremely desirable.
Another factor increasing the value of cabins, lifestyle homes, and onsite vans and annexes is the simple fact the parks are getting better and are offering more and more to their guests on a yearly basis.
With the addition of jumping pillows, pools, waterparks, peddle carts, and more, an increase in appeal offers sellers the opportunity to increase their asking price.
So, is this a bad thing? At Cabin Connect we don’t think so. More people are becoming aware of the opportunity to own a cabin or onsite van in a caravan park, it means families are enjoying quality time together and it indicates that the industry is strong and on a good trajectory.
If you’re interested in buying an onsite cabin, lifestyle home or van, browse the Cabin Connect marketplace and see what your money will buy you!
