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Me and a few others are theorizing its a multi-continent spawn again cuz im seeing a lot of ocean. But maybe not.
If you have buddies, there are summoning mechanics to get together. It's not terribly far into the tech tree. Easy to get in your first hour of play.
Even if they're wrong and they are on this itty bitty continent with everyone else, I have not seen 2000ish hearthfires on my exploration of it today. Seen like, 15. So possibly continental spawning but definitely not localized spawning.
It's not a great spawn or settlement spot with limited area reachable by horse but I already started setting up lol.
But if where you are is a small place(let’s say about 10 min across etc), you might be luck to spawn on an island that you can claim;)