Honua Kai August 2015 Market Update

The summer season has come and gone and we can now get a better perspective of the Honua Kai real estate market. Although our 2015 Mid Year Review provides a good bird's eye perspective, with our market being so season-dependent, the end of summer can provide context that other more conventional quarter-based analysis cannot. 

August

New Listings - With 10 new listings hitting the market, August turned into one of the busiest listing months in recent memory:

Hokulani 316 - Ocean views from this unit, but as it faces the construction (which is said to scheduled for the upcoming 24-36 months) it may take some time for absorption - although it is the only ocean-view 1-bedroom unit in the market today. Priced at $870K. 

Konea 214 - Mountain-view unit on the southern perimeter of the Konea tower. Priced at $892K for the 690 square foot unit.

Hokulani 1034 - Penthouse-level unit on the Hokulani tower. Due to its elevation, the unit does have ocean views from its lanai, although most of the view corridors are oriented towards the mountain. Priced at $1.36M.

Konea 145 - Ground level interior courtyard unit, very much sought-after large floor plan at 1,315 square feet. Developer unit priced at $1.39M

Konea 726 - Some of the higher-floor units on the outside perimeter of Konea have ocean views AND benefit from not having direct exposure to the sun. Priced at $1.395M

Konea 343 - Inner courtyard units have proven to be in high demand and with a list price of $1.465M, this developer unit is priced accordingly.

Konea 139 - Ground level units enjoy the convenience of ingress/egress to the common elements without having to go down hallways/elevators and although this unit does not have ocean views (low elevation), it will be absorbed with its $1,512,450 asking price.

Hokulani 829 - The center stacks offer square footage, view corridors and privacy. And with this 8th floor unit's location, the view corridors are commanding. Asking price of $2.369M

Konea 749 - The '49' stack on the Konea tower offer what are arguably the best values for premium 3 bedroom villas - big ocean views without the front-stack price tag. Priced at $2,812,450, this developer unit is a strong value.

Konea 350 - Front stack developer unit on the north end of the Konea tower, for added privacy and less noise from the pools. Priced at $3.61M.

Sold - Four sales recorded in the month of August.

Konea 409 - Another premium 2 bedroom unit selling. Developer unit sold for $1.505M to a current owner - thereby enjoying 2 years of pre-paid HOA's. 

Hokulani 215 - Second floor interior courtyard unit. Developer sale, closing for $1.3M

Konea 103 - Very special unit due to its ground-level location (high ceilings) and as the second stack from the front, it as an earshot from all the pools, etc. The sale closed for $1.505M making it (arguably) one of the best deals in recent months.

Hokulani 1037 - One of the 'best of the best' 3 bedroom units at Honua Kai due to its elevation, square footage (almost 2,400 sq. ft.), privacy, and outlandishly large lanai with over 900 square feet of outdoor space. With a sales price of $2.985M, it sold for MORE than the asking price. It's worth noting that Hokulani 1025 is for sale - a different floor plan and much different view corridors, but a spectacular unit nonetheless. 

Year to Date

The first 8 months of 2014 were strong, with 54 sales far outpacing the 35 sales of 2015 YTD. The average and median have increased from $1.327M and $1.035M to $1.776M and $1.505M respectively, which by any measure are huge increases. As we mentioned, the higher quantity of sales in previous years is turning into fewer, big sales in 2015. 

The summers months proved to be a stark difference. June, July and August of 2014 had 14 sales, totaling over $16M in sales volume far surpassed the 7 sales of the same period of the current year, which totaled $10.57M. It could be argued that the drastic slowdown is reflective of less-than-ideal conditions all coming together at the same time - Canadian dollar continues to have low exchange rate, the pool renovation has taken longer than most expected (by the time it's completed, nearly FIVE months), the construction next door having a negative impact on southern-facing Hokulani units, and many units coming on the market at prices well above what could be argued as the range of fair market value. For sellers, it is critical to be priced well, reflective of current market conditions and the value proposition of the subject unit.

For those interested in purchasing or selling a Honua Kai condo, contact us. Our expertise in the Honua Kai micro-market will be vital in achieving your real estate objectives.