DVC Resale Price Changes from 2016-20190 Comments
Disney Vacation Club (DVC) has proved to be a timeshare anomaly with its resale value. While many timeshares carry little to no resale value, DVC is quite the opposite.
DVC’s resale value has always been remarkably strong compared to the rest of the industry, and continues to climb even for resorts with expiration dates approaching in 2042.
DVC’s High Resale Value
One of the keys to DVC having and maintaining a high resale value is the economic principle of substitution. In a blog we published roughly 3 years ago, Why is the Resale Value of Disney Vacation Club so Much Stronger than other Timeshares?, we elaborated on this topic.
In summary, most timeshares struggle to rent their inventory for barely more than the costs of the annual dues, whereas Disney doesn’t have to discount their resort rooms nearly as much. As such, the resale value of DVC remains healthy, as it provides a strong alternative to renting Disney resort rooms on a cash basis.
DVC Resale Selling Price Trends by Resort
While we have observed an overall robust upward trend in DVC resale value since 2016, not all DVC Resorts have experienced the same magnitude of value change. Below is a table showing the price per point (PPP) for all DVC Resorts sold by DVC Resale Market (DVCRM) from 2016 to 2019:
Reasons for the Strong Differences Among the DVC Resorts
Grand Californian (35% PPP increase since 2016): This resort checks off virtually every box to have a high resale value, including an outstanding location, a small amount of rooms, great theming, a diverse room mix and a giant x-factor in that it’s the only game in town (for now)!
Beach Club and Boardwalk (31-32% PPP increase since 2016): Ending in 2042 doesn’t slow down buyers for both these perennial DVC favorites. They offer exceptional locations, great theming and uniqueness. The Boardwalk Resort offers a wonderfully themed boardwalk, reminiscent of Coney Island, with a lively atmosphere and a variety of restaurant and entertainment venues. Not to be outdone, the Beach Club has the best resort pool at Walt Disney World (WDW) in Stromalong Bay, and there is no pool hopping from other resorts here.
Animal Kingdom, Old Key West and Saratoga Springs (23-29% PPP increase since 2016): Due to their large sizes, and lack of close proximity to the major theme parks like some other DVC Resorts, they don’t score any points for scarcity of contracts on the resale market. Regardless, they have a lot going for them, including being WDW based, a great mix of rooms, and typically, being more affordable than other DVC Resorts that are adjacent to a major theme park.
Additionally, Animal Kingdom may be the best themed resort Disney ever built, and Saratoga Springs and Old Key West got a nice bump in value with the newly revamped Disney Springs.
Bay Lake Tower (27% PPP increase since 2016): It’s perhaps the greatest DVC resort when it comes to a combination of location and value (dues, years left and price). Bay Lake Tower is the original DVC monorail resort, and currently, the only DVC Resort you can walk into Magic Kingdom from. There’s no surprise—it is making the upper half of this list.
Hilton Head and Vero Beach (17% PPP increase since 2016): The purchase price for these resorts seems to always have to make up for the fact that they have high dues, lack home resort priority at WDW and have deeds expiring in 2042. Regardless, if you want to go to Hilton Head in the summer or get an oceanfront beach cottage at Vero Beach, you will need to either be really lucky or own points at one of these two resorts. Additionally, if you are looking at the economics of owning in the “under 10 years” category, both resorts are worth consideration.
Grand Floridian (16% PPP increase since 2016): Similar to the Grand Californian, the Grand Floridian checks off all the boxes including being the flagship resort of WDW. However, Grand Floridian is almost always 2nd to Grand Californian in resale value, because, unlike the scarcity of DVC rooms at Disneyland, there are many DVC options at WDW.
Boulder Ridge (14% PPP increase since 2016): Traditionally, Boulder Ridge was just lagging behind other DVC favorites Boardwalk and Beach Club by $10 to $20 per point. However, with a newer option introduced at the same location in 2017 (Copper Creek), Boulder Ridge’s resale value began to lag much further behind those other popular DVC Resorts.
Copper Creek and Polynesian (-3% to 4% PPP increase since 2016): Both of these resorts get a disclaimer on this list in that they are both newer. Polynesian entered the resale market in 2015 and Copper Creek in 2017. When DVC resorts enter the resale market, it’s usually at only 20-30% under what Disney is currently selling them for. This is often the reason as the majority of direct purchasers will finance purchases at the minimum Disney requirement of 10% down. If they are going to sell that property within the first year or two since purchase, they may have to list close to Disney prices to cover the loan. Additionally, they may be able to get those higher prices being early to the market with little competition for that same resort.
There are other reasons that may have contributed to a lack of strong appreciation for both resorts as well. Copper Creek has a more affordable option at the same location with Boulder Ridge, and Polynesian suffers from a lack of having a strong room mix, with just studios and bungalows that, although are very unique, are also very point expensive.
Aulani (1% PPP increase since 2016): The biggest drawback to Aulani’s resale value is location and size. Its location is in paradise, however, DVC Resorts historically do stronger closer to a theme park paradise. The other challenge about the location is that it is far away. Although Vero Beach is not at WDW, it’s reasonable to do a combination trip to the beach with Vero and drive a couple of hours to enjoy WDW as part of the trip too. With a trip to Aulani, visiting a Disney theme park is not going to be a part of the equation.
With resale value its size also works against potential appreciation as there is plenty of supply. Regardless, potentially only Animal Kingdom could rival Aulani as the most impressive standalone resort DVC has ever built. Further, with years of flat appreciation and modest dues increases after opening, Aulani has climbed to number 4 in the most recent rankings of best economical resorts to own.