Second Home Report

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Category: Business and Industry

Date Submitted: 11/26/2012 09:35 AM

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Second Home Report Notes

 This report focuses on the second home market. Since one of primary reasons given to purchase a second home is cited as vacation property, there are some instructive notes here relevant to Blue Ocean.

 Thailand and Malaysia are mentioned in the list of countries with strong second-home markets. Malaysia sold 1700 homes to foreigners in 2006 and Phuket, Thailand sold 1200.

 Potential agencies that can help us scour for properties include CB Richard Ellis, Cushman & Wakefield, and Savills.

 In a survey of UK residents, 18% expressed interest in buying a second home. 6% of the total wanted to buy a stand-alone villa, but only 1% of the total was interested in a time-share arrangement. Let’s assume these numbers would approximate our target membership markets in Asia. Blue Ocean, by differentiating the model from time-share, can reach out to the 6% who want the villa experience but cannot afford the costs and upkeep. We would allow them to stay in a villa at a reduced cost as part of our membership package; unlike a timeshare, this arrangement allows them to stay indefinitely.

 The report specifically pointed out Asia as a market with high growth in high net-worth individuals that are prospective second home buyers. Many of these individuals are in the same markets we are targeting.

 One important factor to think about when looking at alternative locations to partner with villas and resorts is accessibility by low-cost carrier. A survey in the report noted that this is a very important factor when people choose where to buy a vacation home. Similarly our members would be more frequent visitors if they can get to destinations at a relatively reasonable cost and without hassle.

 Some low cost carriers identified in Asia include Jetstar Asia, Tiger Airways, AirAsia, LionAir, Viva Macau, Hong Kong Express, and Cebu Pacific Air. Given the choice we should aim for properties that are served by these carriers from...