The annual survey of private residence clubs and fractional real estate interests from Ragatz Associates shows total sales of about $179m in 2020. This amount includes new closed sales, presales, and inhouse resales.
The breakdown of these 2020 North American sales is shown in the table below:
|Private Residence Clubs||$159m|
Overall the total sales have been around $200m for the last 7 years. The peak sales of $1,687m were back in 2007.
To calculate these numbers, Ragatz reached out to 321 fractional interest projects and private residence clubs (prc). Of the 321 developments only 33 actually made some sales in 2020. Most of the inactive developments are older, sold-out fractional interest projects. Of the 33 active developments, 14 are fractional interest projects (product selling for less than $1,000 per square foot) and 19 are private residence clubs (product selling for more than $1,000 per square foot ).
Ragatz notes that "the average annual sales volume in the 33 active projects was $1.4 million for fractional interest projects and $8.4 million for private residence clubs," these were the same levels as in 2019. However, there were three private residence clubs that made much larger sales than the others, and if these are excluded the average for the others drops to $2.3m. In other words, the three large projects averaged sales of almost $41m each in 2020.
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 most common configuration, 65% of the units, is 2- and 3- bedrooms with an average unit size of 1,560 square feet and the average shared-ownership project will contain 27 units.
Prices vary widely between projects. For fractional interest projects the average prices are $164,900 per share, equivalent to $16,675 per week and $505 per square foot. For private residence clubs, these averages are $298,150 per share, $65,950 per week, and $1,950 per square foot. Annual maintenance fees average $9,475 per share, ranging from $7,450 among fractional interest projects to $11,900 among private residence clubs.
The full report, with more detailed analysis, is available at the Ragatz Associates website.