Forest Lakes Country Club, Nova Scotia, Canada

The Nicklaus Design Impact on the Value of a Development

Independent market research has determined that Nicklaus Design Golf Courses greatly enhance the value of a project and have a direct impact on the value and continued growth of the residential pricing.

World renowned ‘Golf Research Group’ calculates the value of designer names in golf developments and sells the data to investors. Its net present value (NPV) index shows the importance of architect branding. Courses designed by one of 40-odd top designers have an NPV of $28.9 million, compared to $17.5 for lesser-known designers and $7.9 million for courses that list no architect at all. This means that homes on developments on top designer courses are worth on average 365% more than homes on courses with no recognised designer. Investors expect that brand value to spill over into their homes, and they are right.

Jack Nicklaus is their undisputed champion. Homes in developments with Nicklaus courses are worth an average of $1.2 million and have more than doubled in value in the last 10 years. The average value of an entire Nicklaus-related development is $245.7 million, the highest in the market.

Colin Hegarty, president of Dallas-based Golf Research Inc., has done extensive tracking of statistics regarding golf course architects over the past decade. Hegarty said his firm found that Nicklaus has the biggest impact on U.S. home sales among designers. Nicklaus has designed 75 golf courses in real estate developments over the past five years, and the average net present value of real estate on each course is $185 million.

The Nicklaus Design brand has had huge impact and success worldwide, with South Africa being a case study of an international market greatly influenced by their brand. South Africa is currently in a significant property downturn, yet the two most successful residential projects in the country have been communities with a Nicklaus course as its centerpiece.

The first four Nicklaus courses opened in South Africa—all since 1998—have earned the prestigious honor of Golf Digest’s Best New Course in South Africa, including 2007 winner St. Francis Links.

  • Pearl Valley, the second Nicklaus course to open in South Africa (2003), is now the most expensive Golf Estate in South Africa, per square foot of land.
  • At Simola (opened in 2005) in Knysna, developers sold 80% of inventory within six months after it was launched. Other communities within a 100-kilometre radius have not achieved this level of sell-through even two or three year launching.
  • St. Francis Links (2006) on the Southeast Cape of South Africa was first launched without the Nicklaus name. The Jack Nicklaus designed course was only added after the sales launch. On average, sales of property after the Nicklaus brand was added were 85% higher than property sold without the Nicklaus brand. The course is now 94% sold out.

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Homes on developments on top designer courses are worth on average 365% more.

Average value of Nicklaus development is $245.7 Million, the highest in the market

Source: Golf Research Group.