As the summer comes to an end, let's take a look at the state of the market at one of our favorite properties, Honua Kai.
New ListingsThe month of August saw two new listings come on the market:
Konea 638 - This one bedroom / one bathroom is on the northern outside perimeter of the Konea tower. With a 6th floor location, there is enough elevation to guaranteed privacy and ocean view corridors, while being near the wing elevator provides convenience in accessing the ground-level amenities. Priced at $990K, we'll see whether the market brings enough demand for absorption at or near the asking price.
Hokulani 403 - A three bedroom / three bathroom interior courtyard residence priced at $3.2M. North-facing, view corridors are framed by the resort pools, Duke's, and of course the awe-inspiring Pacific Ocean. Contact us to learn more about seasonal sunsets. At the list price, with this level of attributes and square footage, this unit is one of the better deals within the 3 bedroom niche on the market.
New EscrowsThe month of August saw one more listing go under contract. Hokulani 244 is a partial ocean view on the northern perimeter of Hokulani, near the side elevator and staircase - convenient location to say the least. With a list price of $959K, it will be interesting to note its final sales price when sale records.
SoldA total of four units traded hands in the month of August, detailed below:
Konea 521 - A Studio in the Konea tower, on the south east corner of the interior (arguably preferable than the north west corner due to orientation) sold for $960K, marking by far the highest sale of a Studio at Honua Kai, breaking Konea 615's previous record of $891K. It will be interesting to see whether 521's will spur comparable sales of studios - although studios are known as being very strong rental revenue generators, the basis of ROI is founded on the cost of acquisition.
Hokulani 309 - The '09' stack is in much demand due to the L-shaped lanai. Such pent up demand is reflected on sales prices, with 309 selling for $2M, well within what can be argued to be its fair market value range.
Hokulani 815 - Much like the '09' stack, the '15' also offers the L-shaped but arguably in a better location as it is protrudes further into the center of the perimeter - big views, protected from the tradewinds. Selling $2.2M (above the $2.1M listing price), the 8th floor elevation is well reflected on the sales price.
Konea 449 - As we had noted on a previous update, the '49' stack offers a near front-row location, without the necessary premium to be front row. The listing price of $2.96M was surpassed by the actual sales price of $2.99M, which is all within what is expected of second-row three bedroom units, particularly so in the higher floors.
ConclusionWith only one more unit going into escrow, there are a total of 4 in escrow now which includes some that have been under contract for several months. Although the end of summer generally signifies a slow down in absorption, over the past few years the downturn has been less drastic but we might see it more pronounced this year as we head into September / October. Inventory is slower now, with only two units coming to market in the past month, which will either be reflected by more aggressive demand ('we need to buy one now as there are no other options') or less absorption (people waiting out the market to bare more inventory). Next month we will have a quarterly update to more deeply assess both recent activity and a bird's eye view of the market. For those interested in discussing Honua Kai listings, contact us.
Specializing in Makena and Wailea real estate, Alex Cortez is fully dedicated to representing his clients ethically and diligently. Contact him at 808.385.5034 or Alex@MauiRealEstateSearch.com for more information.