A new report into the Australia and New Zealand fractional market claims the sector there could generate anything from AUD$9 billion to AUD$70 billion in sales revenue, with potential consumer demand from up to 470000 households.
The Australia and New Zealand Fractional Market 2010 report was commissioned by The Registry Collection and compiled by Ragatz Associates, Australian market research firm, Bergent Research, and law firm Baker & McKenzie.
The report addresses developer concerns over the potential consumer take up of the product, confusion or inexperience in tailoring the right fractional offering for the market and confusion over the compliance and corporate regulations that apply under Australian law, all factors which have hindered the development of the fractional ownership industry in this region so far.
Bergent Research interviewed 400 prospects for the report, mostly wealthy residents between 40 and 59 years of age, with different levels of knowledge of fractional real estate. Nearly half of all prospects interviewed considered fractionals a viable alternative to other holiday accommodation. Queensland in Australia and the Bay of Islands in New Zealand were the most popular locations for a fractional holiday property.
The report concludes that there is a market for the fractional product within Australia and New Zealand and that there is an opportunity for developers to earn increased profitability if a fractional offering is conceived and developed correctly.
Results of the report were presented at the ‘Fractional Real Estate Essentials’ pre-conference event that preceded the Australian, New Zealand & Pacific Hotel Industry Conference (ANZPHIC 2010) in Sydney (7 to 9 July).