This news came from Luxury Fractional Guide last week: two recent studies have found strong potential for the fractional markets in Brazil, Australia and New Zealand.
According to Fractional Life, a study presented at the first South American Shared Ownership Investment Conference found the vacation ownership market in Brazil "is poised for rapid and long-term growth for many years." On the other side of the globe, a recent report commissioned by the fractional exchange company The Registry Collection, titled “Australia and New Zealand Fractional Market 2010″ shows that the potential market for fractionals sits at over 470,000 households and possible sales revenues from $9.3 billion to $70.7 billion (USD).
While The Elan Collection does not currently include properties in these countries (yet), these forecasts show the market for international shared ownership is not only wide, but deep. About 1,208,200 households, or 12 percent of the population across Australia and New Zealand are eligible for fractional ownership. According to the NorthCourse 2009 Fractional Interest Report, 80 percent of the income-qualified households in the U.S. do not own a second home...a need the shared ownership industry hopes to fill. "Even 5 percent market penetration would produce over $4 billion in sales," forecasted the report at the time. (More to come on the U.S. fractional market soon). Earlier this year, the 2010 Ragatz Report also concluded: "The consumer research we continue to do in focus groups and consumer surveys indicate an ever-increasing preference toward fractional verses resort time-share and especially whole-ownership."
What do you think about the depth of the fractional market in 2010? Are you hearing that there will be a leap in potential fractional interest this year on a global level, or do you think it will be more localized? Where does the U.S. fractional market come into play?
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