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Kangaroo Island has become more popular among prospective buyers lately. Picture: supplied.

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Keen investors and househunters are turning their eyes to Kangaroo Island after the popular tourist destination was named one of the world’s must-visit locations.

Real estate experts have reported increased interest in KI properties since Lonely Planet included it in its 50 must-visit spots for 2024 last week, coming in at No. 2 on its regions list.

Martin Real Estate director Colin Martin said prospective buyers had all of a sudden started calling about an old Emu Bay caravan park he has had on the market since February.

“Since then we’ve had inquiries on the property, which we never got before,” he said.

“I’ve had six inquiries that are good inquiries.”

Mr Martin said the 1.22ha property at 58 Hamilton Drive came with development plans to transform the former caravan park into a cabin park, which was appealing to buyers.

The Emu Bay property at 58 Hamilton Drive currently has a cabin on it. Picture: Martin Real Estate.

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It used to be an old caravan park. Picture: Martin Real Estate.

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“Historically this was owned by the council and it was a caravan park,” he said.

“It was sold around 17 years ago to the current owner and they were going to develop it as onsite cabins.”

The property currently has several power supply outlets for caravans and a three-bedroom cabin, which Mr Martin said was popular among tourists.

“Even the cabin that’s on the site is booked up until February next year,” he said.

Century 21 Kangaroo Island principal Michael Barrett said he had also noticed the increased interest in the area.

“We’ve released some new listings as well so it’s difficult to know but certainly our inquiry level has picked up, we had a bit of a lull there through October,” he said.

“It’s definitely increased in the past week-or-so.

Mr Barrett has listed six properties in the past week, a combination of both houses and land.

With summer among the KI property market’s busiest periods and a lot happening in the area over the next few months, including port upgrades commencing and the Southern Ocean Lodge due to reopen, Mr Barrett said there would be a flurry of activity in the region.

Renders of what the park could look like if cabins were built on it. Picture: Martin Real Estate.

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Kangaroo Island Mayor Michael Pengilly. Picture: Matt Loxton.

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According to latest PropTrack data, Kangaroo Island has a median house price of $410,000 after climbing 17.1 per cent in the past year and 74.5 in the past three years.

Kangaroo Island Mayor Michael Pengilly said property in the area had long been undervalued but that was starting to change.

“It’s now lifting to approach what it should be,” he said.

While he said Lonely Planet’s recommendation offered “publicity you can’t buy”, he warned it could also have a negative impact, particularly if it becomes over exposed and people’s expectations get too high.

For the most part though, he said it was great for the Island.

“It puts confidence in the future of the island for those who invest and live here,” he said.

“We’ll always be a secret hiding spot for a lot of people.”