Ginn Drops Villa Prices in Reunion Resort near Orlando, Florida
Move follows success of price reductions of several Hammock Beach Ocean Towers condos
Palm Coast, Florida – June 30, 2008 – An Orlando area GoToby.com reader reports that the Ginn Company has reduced prices on over 100 villas surrounding the water park in its Reunion Resort near Orlando’s Disney World. He tells me that prices now start around $325 thousand. The new prices are rumored to include 50% of the furniture package, a $35 thousand value, plus a club membership.
This is another sign that cash flow has trumped Bobby Ginn’s long-standing strategy to hold prices steady at his resorts. Ginn recently nailed contracts on 25 Ocean Tower condos in Hammock Beach, near Palm Coast, by reducing prices by an average of 50%. Holding prices at previous levels is good for existing property owners and club members, but the reality of today’s market makes that strategy untenable. Artificially high prices stall real estate sales, reducing direct sales revenue, club membership fees and the resulting monthly dues. Some unhappy and/or financially strapped property owners in several of Ginn’s communities have stopped paying their monthly membership dues, further cutting Ginn’s cash flow.
At Tesoro, another Ginn development in Port St. Lucie, a group of property owners had been unsuccessful in efforts to sell their properties. They decided to try another strategy. Six homes and 16 lots were offered in a reserve auction Saturday. When contacted, a local real estate agent responded that he was not authorized to release any information about auction results. He referred me to the auctioneer, J.P. King Auction Company from Gadsen, Alabama. The company has not responded to my inquiries.(story)
Rumor: (noun) A current story or statement without confirmation or certainty as to facts
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