The survey of private residence clubs and fractional real estate interests from Ragatz Associates, shows total sales of $198m in 2019. This is the highest sales volume in 3 years, with a 3-year increase of 13.1%. It is the first year when the survey has excluded destination clubs.
The breakdown of these 2019 North American sales is shown in the table below:
|Private Residence Clubs||$167m|
Overall the total sales have been around $200m for the last 6 years, with the peak being back in 2007 at $1,687m. This amount includes new closed sales, presales, and inhouse resales.
To calculate these numbers, Ragatz reached out to 319 fractional interest projects and private residence clubs (prc). Of the 319 developments, 42 actually made some sales in 2019. Most of the inactive developments are older, sold-out fractional interest projects. Of the 42 active developments, 22 are fractional interest projects (product selling for less than $1,000 per square foot) and 20 are private residence clubs (product selling for more than $1,000 per square foot ).
Ragatz notes that "the average annual sales volume in the 42 active projects was $1.4 million for fractional interest projects and $8.4 million for private residence clubs." However, there were four private residence clubs that made much larger sales than the others, and if these are excluded the average for the others drops to $4.5m. In other words, the four large projects averaged sales over $20m each in 2019.
The most common share size in both the fractionals and the prcs is 1/8th to 1/10th (so about 5 to 6 weeks of use each year). The average development contains 26 units, with 2- and 3- bedrooms being the most common configuration and an average unit size of 1,635 square feet.
Prices vary widely between projects. For fractional interest projects the average prices are $161,500 per share, equivalent to $22,200 per week and $535 per square foot. For private residence clubs, these averages are $248,000 per share, $63,475 per week, and $1,950 per square foot.
The full report, with more detailed analysis, is available at the Ragatz Associates website.