Marina berths are hot property in booming boating market

Demand for marina berths has reached new highs on the back of COVID-19 as boat enthusiasts seek to secure a different kind of water property.

In turbulent economic seas, marina berths are proving hot property as boaties circle mooring investments along some of Australia’s most popular coastlines.

But opportunities to invest in these alternative assets are becoming increasingly limited due to an increase in boat ownership on the back of COVID-19.

According to data from the Australian Boating Industry Association, boating registration jumped from 910,000 in 2019 to 925,000 in 2022.

With close to a million boats registered but only 296 marinas established around Australia of which 224 are commercial, Marine Industries Association membership and programs manager Ed Shute said urgent government action was needed to create future recreational berthing opportunities.

This recreational marina berth in Port Lincoln is for sale with an asking price of $59,000. Picture: realcommercail.com.au/for-sale

In a 2021-published survey entitled  ‘Australian Marinas: Economic, Social and Environmental Performances’, the MIA cited concerns over inadequate supply of in-water boat storage, with the average marina home to 210 boat spaces with just 160 recreational berths.

This equates to less than 50,000 in-water mooring opportunities nationally.

“Some marinas are experiencing occupancy levels close to 91% while in other places around Australia, occupancy sits at around 75%, which is quite high, especially for non-peak seasons,” Mr Shute said.

“So these levels cause challenges around summer when people want to move from one state to the other to chase the sun, and we expect this issue to get worse as more boats are released over the next five years.”

Opportunity knocks in Port Lincoln

Demand for recreational berthing opportunities has been far reaching with buyers eyeing off popular tourist hot spots to moor their vessels, according to Kemp Real Estate agent Carl Semmler.

This includes Port Lincoln in South Australia where Mr Semmler is selling berths 69, 89 and 90 at Port Lincoln Cove Marina, with respective asking prices of $59,000 and $290,000.

There are 70 years remaining on leaseholds for berths 89 and 90. Picture: realcommercial.com.au/for-sale

“We’ve seen an increase in demand, probably for the past two years, especially from people outside of town needing to house their boats,” he said.

“Other buyers attracted to our berths are people who have purchased homes not on the water so are in need of a berth to house their boat.

“So most of the interest we get are from buyers wanting to use these berths for their own use as you don’t really get a return by renting them out as an investment. 

“But it’s rare to have these listings and the two joint ones are a bit unique as they are recreational bursaries, meaning they are leaseholds with approximately 70 years left on the berths.

“Berth, 69, meanwhile, is a community title freehold and is ideal for smaller fishing vessels and recreational boats.”

Are marina berths a good investment?

Marina Berth sales broker Bruce Bell said demand for berths was generally driven by where people lived and holidayed.

This, he said, had resulted in price increases of up to 50% at selected marinas, however, he advised against purchasing berths for investment purposes. 

Marinas are generally built on crown land, meaning berths are sold via leaseholds or community freeholds which expire after a set period.

“If you bought a 20 year lease on a berth, what you’re really doing is renting it for 20 years but paying the rent 20 years in advance,” Mr Bell said.

“So the word investment is very dangerous to use in respect to berths because it’s more of a lifestyle decision.

“Of course you can rent it out on a weekly basis but the return is just not worth it.”