The annual survey of residence clubs, fractional interests and destination clubs, from Ragatz Associates, shows total sales of $516m in 2016. This is roughly the same as the total sales in the last few years. The mix between the different components has varied a little over the years but the total has consistently been around $500m.
The breakdown of these 2016 North American sales is shown in the table below:
|Private Residence Clubs||$142m|
To calculate these numbers, Ragatz reached out to 310 fractional interest projects and private residence clubs, along with six destination clubs. Of the 310 developments, 57 actually made some sales in 2016, as did all six destination clubs. Most of the 253 inactive developments are older, sold-out fractional interest projects.
Of the total 57 active projects, just four of them had sales over $10 million, while eighteen had sales of less than $1 million.
The size of a share in each of these developments can vary from 3 weeks of ownership, up to 12 weeks. When compared to the peak year of 2007, per share prices have decreased by 37 percent, per week prices by 39 percent, and per square foot prices by 20 percent. The average development contains 43 units, with 2- and 3- bedrooms being the most common configuration and an average unit size of 1,590 square feet.
Looking at the destination clubs, Ragatz estimates there is a total of 19,850 members across the clubs. The average residence in the clubs has a reported value of $2.7 million and contains 3,200 square feet.
The full report is available at the Ragatz Associates website.