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Luxury Kauai vacation home market is optimistic

Optimistic outlook for luxury vacation-home market

One of the drivers that buffers our Kauai market from the duldrums is the ongoing purchasing of luxury property. These are properties that are extraordinary and often expensive. I generally look at this market as being above $2 million in price, though it could be lower. These couple of snippets below from the 2008 Annual Wealth report validate this notion.

The outlook for owners of "prime property" - "the most desirable, and normally most expensive, property in a defined location" - notably for vacation homes, is much more optimistic, according to the 2008 Annual Wealth Report by property consultants, Knight Frank and Citi Private Bank.

"The boom in second-home ownership over the past decade will be nothing compared with the growth we will see over the next decade," the report says.

Liam Bailey, head of residential research at Knight Frank and the author of the report, notes that while the market for prime residential real estate will be weaker this year and next, thanks to the global credit crunch
, the outlook for prime property over the medium and long term is strong, as the rich get richer and wealth increases across the globe.

Global prime property prices rose by 11 percent worldwide in 2007, according to the Wealth Report. It notes that rising affluence across the globe is likely to spur sales of vacation homes. "Rising affluence generates another market: second homes and holiday homes," it says. (The Wall Street Journal)

Ron and Gwen Margolis
On Top of The Aloha Beat
The Pulse of Kauai Real Estate
Century 21 All Islands
email: ron@landinkauai.com
24 Hour Information Line: 800-582-9585
Cell: 808-346-7095

Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: ron@hawaiilife.com

Comment balloon 0 commentsRonnie Margolis • May 30 2008 12:16AM



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