Honua Kai April 2015 Update

Now that we are in May, the last drove of sales from high season is trickling in as recorded sales. As such, it provides a better purview on which to measure the state of the market. So with that, let's discuss our Honua Kai market.

New Listings

Hokulani 530 - The floor plan of this unit is popular due to its size, with approximately 765 square feet of interior living space. Mountain view unit, priced at $789K.

Hokulani 412 - This 1,100 square foot unit offers ocean views, which are unlikely to be affected by the construction on the parcel to its south - but we cannot attest/guarantee this. Priced at $1.1M, it is a strong value in a market in which 2 bedroom units have been selling well above 1K per square foot.

Konea 526 - The sale of Konea 426 for $1.3M has proven to be a significant mark of value for 2 bedroom units - a year ago it would have been hard to believe that a 2 bedroom mountain-view unit would sell for that price. As such, Konea 526 being directly above is priced fairly at $1.375M - as a developer sale, contact us to find out if there are any applicable incentives for the purchase.

Developer Inventory

Below is an updated list of developer inventory, but it is subject to change without notice. For confirmation of what is currently available, contact us below or call 808-385-5034.

New Escrows

The month of April saw 4 units - not counting developer units not on the MLS - go under contract.

Konea 614 - This will be an interesting one to watch when it closes. Listed for $739K, the 690 square foot unit has mountain view corridors and may be setting a new benchmark for mountain-view one bedrooms units when measured by price per square foot.

Konea 345 - Well-priced at $1.395M, it is easy to see why this interior courtyard unit went under contract. In comparison to developer units (adjusting for elevation and stack location), it should sell close to its asking price.

Konea 629 - As the developer's inventory of inner courtyard, center of the 'U' dwindled, values of units in this niche has soared. Priced at $2.195M, it is reflective of the state of the market and could prove to be a good value to the new owner.

Hokulani 501 - With an asking price of $5M, Hokulani 501 has a small pool of potential, viable buyers. But boasting one of the most magnificent view corridors anywhere on Maui and one of the strongest short-term cashflow and long-term equity growth potential, it is easy to understand its absorption in a luxury segment that has been stagnant this year.

Sold

Four sales recorded in the month of April, compared to 5 sales in the same month last year. However, a telling sign of the kind of units being absorbed is the median sales price: April 2014 median sales price of $796,600 versus April 2015's $1.412M median. 

Hokulani 140 - The outside northern perimeter of Hokulani is much sought after with its quiet tropical setting. The sale of 140 for $810K is not surprising but is reflective of the rising 1 bedroom market. This unit is considered a garden view.

Konea 426 - This was a bit surprising. A mountain view 2 bedroom selling for $1.3M? Great job by the listing agent - and it should serve as notice to potential buyers that the market IS increasing and waiting too long may result in being priced out of the market.

Konea 407 - Interior courtyard on a mid-level floor level. Its sales price of $1.525M is precisely where one would expect it to be. It is a developer sale and credited pre-paid HOA fees of one year to the buyer.

Hokulani 250 - Front row at Hokulani. Due to the view corridors being somewhat impacted by Duke's, the sales price of $3.07M is understandable.

Conclusion

One thing to keep in mind when analyzing the Honua Kai micro-market is that the market is shifting upwards quickly under measured, sustainable steps. Using comparable sales (whether for an appraisal or for a broker's price opinion) that are more than 6 months in the past will lead to flawed/inaccurate valuation. To compare the first 4 months of 2014 to the same time period of 2015 shows underlying trends: 2014 Jan-Apr recorded 24 sales,  at an average of $1.36M and a median of $935K, for a total sales volume of $32,642,450, which compares to 2015 Jan-Apr's 21 sales - so although the number of sales is lower, the average increased to $1.7M and the median to $1.485M, which resulted in a total sales volume increasing to $35,699,450. All other things being equal, our advice to prospective buyers is to explore today's market and see if available inventory will meet their needs - waiting will result in being under different market conditions, which may be at that point no longer an economically viable option.

Contact Us

For those looking to explore what the Honua Kai condo market has to offer, contact us - we keep abreast of micro-market trends in real time and have expert-level knowledge of the property and its unique value proposition. Call 808-385-5034 or fill out the form below.