Proposed Hilton Head subdivisions mark resurgence in development
Two subdivisions proposed in recent months on Hilton Head signal a surge in housing not seen on the island since before the economic downturn, real-estate agents and developers say.
The communities -- Silver Moss and Salt Creek Landing -- would rise on Spanish Wells Road.
Silver Moss would have 48 houses priced between $400,000 and $600,000.
Salt Creek Landing would have 39 houses priced between $300,000 and $450,000.
The houses, which come with marshfront views and in-ground swimming pools, are the first subdivisions of five lots or more at such prices proposed since the Great Recession, according to town records.
Although there is limited buildable land on the island, developers say cash buyers, fewer foreclosures and an increasingly reliable housing market mean planned communities are once again a worthwhile investment.
"What we're seeing is builders feeling more confident to go into development and speculation building," said Ashley Feaster, executive officer of the Hilton Head Area Homebuilders Association.
David Brown, president of Southern Lifestyle Properties, envisioned Silver Moss as an apartment complex when he bought the 12 acres in 2005. A rash of quick sales of foreclosed homes last year convinced him to sell house lots instead.
"Short sales weeded out a lot of the buying opportunities," he said. "... I know land is at a premium, and there weren't any new houses available for the price I was going to sell."
Salt Creek Landing was originally part of The Paddocks, a 48-lot subdivision that borders Jarvis Creek.
Developer Tim Wright sold those lots in three months in 2005, before the downturn. "It's scary how fast things were going," he said.
When the economy tanked, Wright decided to hold onto the 17-acre Salt Creek site.
He chose to move forward again with the recent arrival of more cash buyers.
Retirees from the Midwest and Northeast are weary of long-term mortgages and increasingly paying more upfront, according to the National Association of Realtors.
Forty percent of South Carolina's home sales were all-cash during the first quarter, according to association data. Cash sales in the state made up 37 percent of home purchases in all of 2012, and 34 percent last year, those statistics show.
"I think builders see an opportunity," Wright said of the two new subdivision plans.
Construction of roads and installation of utilities should begin in a few months at both subdivisions, and model houses will open next spring, developers say.
"People are looking for new and no-hassle, and that's what they'll get," Brown said.
Follow reporter Dan Burley on Twitter at twitter.com/IPBG_Dan.
Related content:
- Beaufort County has second-most underwater mortgages in SC, Aug. 3, 2014
- Cash is king for Beaufort County's upscale real estate market, May 8, 2014
This story was originally published August 29, 2014 at 8:07 PM with the headline "Proposed Hilton Head subdivisions mark resurgence in development."