Confidence in Real Estate Underscores Kiawah’s Long-term Appeal, Stability

We are well into summer when temperatures and seasonal visitor numbers are on the rise. And there are several encouraging signs that Kiawah real estate activity is also increasing.

Kiawah Island Real Estate is seeing more sales as the worst grip of the national recession seems to be loosening bit by bit. Strong home and homesite sales on the Island in January, April, and May demonstrate continued buyer confidence; and increasing numbers of inquiries and qualified sales leads bode well for the coming months. New construction has continued at a steady pace, as has the renovation and expansion of existing homes, from oceanfront to interior properties. Mortgage rates are still at historic lows.

Kiawah Island is benefiting from several advantages during this down market, compared to other areas. On a “macro” level, our region was affected late by the economic down turn. As a result we have been impacted somewhat less severely than most. On a “micro” level, Kiawah remains a desirable place to live for its unique lifestyle, incredible natural beauty, unparalleled amenities, and proximity to one of America’s most charming cities, Charleston. We are a stable community of 4,500+ owners with 35 years of experience in how to manage bumps in the road. And Kiawah has a solid history of property appreciation, continuing investment in quality infrastructure and amenities, and a good resale record. The long-term commitment to enhancing life on the Island made by all Kiawah entities fosters success now, and should continue to do so.

Diana Permar, President of Permar Inc., a national real estate market research firm, observes that these factors have helped to position Kiawah “at the top of the market” now, and for the future. “Kiawah Island is a mature place with a long record of price appreciation,” says Permar. “KDP, Kiawah Island Golf Resort, KICA, the Town of Kiawah, and the Clubs are all financially sound – certainly unusual today.”

“Proximity to Charleston is another valuable part of Kiawah’s strength,” she adds, referencing the city’s diverse economy, growth projections, and reputation as ‘Best Small City in America.’ Permar says that the relationship with nearby Charleston is key, the “X” factor few other resorts can rely on. “Kiawah is such a unique place – among the best communities of its kind in the US; and an integral part of a region anchored by historic Charleston. This is a difficult, if not impossible, combination to match.”

On the Island, KDP along with KICA, the Town of Kiawah, and the Resort, continue to make major improvements here. These improvements are investments in our (and your) joint asset base – i.e., the Island’s appearance, ambiance, and appeal overall. These continue to enhance the Island experience and thus the inherent value of everyone’s real estate. Recent and current improvements include:

•  Construction of The Station at Freshfields, the 3,670 square ft. new general store that will provide a New York-style deli, a brushless carwash, beverages, sundries, and fuel; and will be a key additional convenience for property owners, guests, and visitors.
•  The extension of the Kiawah bike path from the Main Gate to Freshfields Village, to include the addition of a bridge for the path, all new Parkway landscaping, and paving of the Kiawah Parkway to Betsy Kerrison Parkway.
•  Continuing ARB activity for both new permits and major renovations, indicating that our property owners are continuing to invest with confidence in their homes.

Also, the five star Sanctuary hotel is continuing to draw quite favorable interest – and bring potential property owners each day on the Island. The Sanctuary earned Mobil’s Five-Star designation for 2008 in addition to receiving the AAA Five Diamond Award, membership in Preferred Hotels & Resorts Worldwide, and the highest ratings from Travel + Leisure, Condé Nast Traveler, and Andrew Harper’s Hideaway Report.

During any economic period, but more so during challenging times, property owners want to place their confidence in options that are likely to continue to reward them, personally and practically. If long experience is a reliable guide, Kiawah should continue to do both.

As Permar says, “Kiawah has shown competitive muscle in the downturn, outperforming other key coastal communities over the last four years. Everything is in place for people to build good lives here. Kiawah is a leader in the market and in lifestyle.”

People will continue to buy property on Kiawah sooner rather than later, as they recognize that today’s market conditions are still favorable for purchases. This may be an opportune time to continue – or to add to –your own Kiawah experience.