The annual survey from Ragatz Associates shows an increase of 4% in the total sales for various shared ownership properties in 2013.

Ragatz looks at sales in the USA, Canada, Mexico and the Caribbean, for developments with greater than 5 units. For simplicity, it splits the sales into "fractional interests", which are sold at less than $1,000 per sq ft, private residence clubs, which sell for greater than $1,000 per sq ft and then destination clubs. In reality fractional interests and private residence clubs differ from each other in terms of price, quality of product, services and amenities. Total sales, including pre-sales and in-house resales across all three categories were $517m in 2013.

The table below shows the breakdown of these sales:

    Fractional Interests $80m
    Private Residence Clubs $181m
    Destination Clubs $256m

Fractional interests saw an increase of 13% compared to 2012 and private residence clubs declined by $15m or 8% compared to the prior year. The bright spot was destination clubs which increased by $26m or 11%, largely driven by the growth of Portico and Inspirato. Overall sales volume was down by 78 percent (-$1.78 billion) since the peak year of 2007.

Concentrated Interest

As last year, a few clubs saw high sales. Of the total 75 active fractional projects, five percent had sales over $10 million, while 39 percent had sales of less than $1 million.

Pricing

The average price per share for fractional interests was $115,000 and for private residence clubs was $300,000. Both of these averages reflect a mix of all sorts of units from studios to four bedroom residences, with the average unit size at 1,640 sq ft. Annual maintenance fees average $7,060 per share, ranging from $6,000 among fractional interest projects to $11,625 among private residence clubs. On a per week basis, such averages are $1,045 and $2,565, respectively.

Share Sizes

As a broad rule, private residence clubs have lower share sizes, with a range of 1/8 to 1/12. Fractional interests can have larger shares with 24 percent of the market made up of 1/6 shares or larger.

The full report is available through Ragatz Associates website.

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