Port Royal Annual Report 2015

PORT ROYA L

annual report 2015

17 7 0 G A L L E O N D R I V E

L I V E E XC E P T I O N A L LY ™

1 | PORT ROYAL

PORT ROYAL ANNUAL REPORT 2015

Presented by:

The Team at Gulf Coast International Properties Michael A. McCumber, P.A. and Timothy P. Savage, P.A., Principals

Gulf Coast International Properties presents its annual Port Royal Market Report for 2015. This sought after report continues to be preferred not only by our discerning clientele, but for industry experts as well.

World class integrated marketing efforts coupled with exceptional results has earned us the reputation as Naples premier boutique real estate firm. As the proven Port Royal market leaders, Gulf Coast International Properties associates strive to exceed our client’s expectations through uncompromising integrity and unprecedented concierge service. Our award winning locally owned and operated multi-generational firm exemplifies the Naples reputation for luxury living. Specializing in exclusive one of kind estates, Gulf Coast International Properties invites you to experience the difference to Live Exceptionally™.

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 2

Port royal - By

the

NumBers - yesterday

aNd

today

$1.02 Billion Total MLS Closed Sales from 2006-2010 $1.52 Billion Total MLS Closed Sales from 2011-2015 49%

Increase in Total MLS Closed Sales over 5 year period from 2006-2010 to 2011-2015

$303 Million Total MLS Closed Sales in Port Royal in 2010 $358 Million Total MLS Closed Sales in Port Royal in 2015 18%

5 Year Increase in MLS Total Closed Sales $ in Port Royal from 2010 to 2015

53

Total MLS Closed Sales in Port Royal in 2010

44

Total MLS Closed Sales In Port Royal in 2015

(17%)

5 Year Decrease in Total MLS Closed Sales in Port Royal from 2010 to 2015

270

Average Days on Market for Sold Properties in 2010

257

Average Days on Market for Properties Sold in 2015

(5%)

Decline in Days on Market for sold properties from 2010 to 2015

$5.7 Million

Average Closed Sale Price for a Port Royal Property in 2010

$8.1 Million

Average Closed Sale Price for a Port Royal Property in 2015

42%

Increase in Average Closed Sale Price in Port Royal from 2010 to 2015

Source: Southwest Florida MLS

For more information please visit: www.gcipnaples.com

3 | PORT ROYAL

$69m

Asking Price for a Beachfront Property

2015 $358m 2014 $365m

13 months Approximate supply of properties for sale

For more information please visit: www.gcipnaples.com

2

%

Decrease in Total MLS Closed Sales $ from 2014 to 2015

ANNUAL REPORT 2015 | 4

Average Closed Sales Price: 2015 $8.1m 2014 $6.6m

23

% 2015 257

Increase in Average Closed Sale Price from 2014 to 2015

2014 213

2014 55 2015 49

2015 $1,392 2014 $1,259

13

%

Decrease in Inventory from January 1st 2015 to January 1st 2016

11

%

Increase in average price per sq. ft. for livable homes from 2014 to 2015

For more information please visit: www.gcipnaples.com

21

%

Increase in Average Days on Market for Sold Properties from 2014 to 2015

5 | PORT ROYAL

$110,000,000

$5,000,000

$82,500,000

$3,750,000

$55,000,000

$2,500,000

$27,500,000

$1,250,000

$0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Average Sale Price $

Total Sales $

Port Royal 2006-2015 Total Sales and Average Sale Price

$0

YEAR

Total Sales

Average Sale Price

Source: Southwest Florida MLS

Port Royal in 2015 was an excellent year for sales statistically speaking. The $8.1m average MLS closed sale price was the highest on record while total sales of $358m was second only to 2014 in total sales $ volume. At the same time, total number of sales (44) and inventory levels (about 12-13 months supply) fall well within historic Port Royal norms and suggest a more healthy market than a superficial analysis may suggest. Unquestionably Naples’ finest waterfront community has fully recovered from the downturn of 2008-2011 and surpassed many sales in the ‘run-up’ to that period, we are not seeing the ‘flip’ (defined as re-selling the same property within a year) and high levels of leverage witnessed previously. Gulf Coast International Properties, as a leading seller of Port Royal properties, does believe that the price increases explain in part the slow down in sales and are actually a benefit to overall buyer / seller market balance.

Yet we would also remind prospective buyers that the Port Royal lifestyle is still second to none in Florida and explains why we see such sale prices.

Taking a deeper dive into the Port Royal Market for 2015, average sale prices were at an all time high, well done remodels and beachfront sales. Additionally, a number of premium lots were acquired to collectively drive the $8.1m average sale price. One must consider, especially from 2009-2012, that many of the sales were driven by land acquisition, that historically is a lower sale price than a remodeled or new home. Now that the 2-3 year cycle to build has been reached, we will start seeing more high-end, significant sales prices recorded.

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 6

2014 vs 2015 Performance by Property Type Home Re-Sales

New Construction Sales

Land Sales*

2014

2015

% Change

2014

2015

% Change

2014

2015

% Change

# Sales

42

31

-26%

2

3

50%

8

7

-13%

$ Sales

$292m

$265m

-11%

$18.6m

$36.4m

96%

$43m

$49m

14%

Avg. Sale Price

$7m

$8.5m

21%

$9.3m

$12.1m

30%

$5.4m

$7m

30%

*Excludes ‘tear-down’ sales due to inconsistency of sale value relative to home value Source: Southwest Florida MLS

Port royal sales - 2014

vs.

2015

Home Re-Sales - Defined as non new construction and exclusive of ‘tear downs,’ home re-sales were down 26% in 2015 vs. 2014 in volume but up significantly in average sale price from $7m to $8.5m. Due to the lack of new homes for sale in 2014 and number of homes that had been remodeled, 2014 was a record breaking year for volume re-sales that 2015 wouldn’t beat. Average sale price was way up as the strong market saw a number of homes sell on premium lots with excellent water views, bringing the price up. Also, sale price is reflective of the sheer strength of the market and prices buyers were willing to pay.

New Construction Sales - Despite media reports to the contrary, new construction sales in Port Royal continue at a very modest pace. The sheer level of investment required, time to return (2-3 years) and lack of quality lot inventory all contribute to only 3 new homes closing, or about 7% of total Port Royal MLS sales. However, the $12.1m average sale price and $1,700 per sq.ft. both represent new average highs respectively. Going forward, with 10 homes on the market and/or nearly complete, we will see the number of sales increase significantly in 2016, keeping current market conditions constant.

Land Sales - Land sales, similar to neighboring markets* (Note GCIP represented both the buyer and seller in a record new construction sale price of $2,293 per sq. ft.) Aqualane Shores and Olde Naples, have seen an explosion in average sales price, and a solid increase in overall sales volume, as demand to build has tracked with the overall market recovery. Just this year, average sale price was up 30% over 2014 to reach $7m. Port Royal witnessed multiple sales records, such as a lot and a half selling for over $11m, and a double lot for $14.4m. Its important to note that the number of lot sales has decreased as prices have outstripped demand to the point many buyer chose to buy and remodel an existing home.

2016 Gulf Coast International Properties believes 2016 will be another strong year for Port Royal sales. We project that average sale prices will level off built since 2009 normalizes. We anticipate that new home sales will become a bigger percentage of total sales, driven by supply and premiums required for land and/ or tear downs. We will continue to advise our clients, both buyers and sellers, that the market still presents opportunities for both sides.

Sellers can realize attractive sale prices while buyers have a community that is second to none in the lifestyle that it affords. They can also take comfort in knowing over time that over time Port Royal prices have shown significant appreciation, again due to the incredible quality of life this special waterfront community provides.

For more information please visit: www.gcipnaples.com

L I V E E XC E P T I O N A L LY ™

www.gcipnaples.com Port Royal’s ONLY Inter active Website visit www.gcipnaples-portroyal.com OLDE NAPLES 1144 THIRD STREET SOUTH 707 12TH AVENUE SOUTH 239.434.2558 BOCA GR ANDE 411 PARK AVENUE 941.964.1778

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