As one of the most active micro-markets in Hawaii, it is pertinent to follow the Honua Kai Real Estate micro-market, to see how it behaves comparative to other subsets, particularly as the Luana Garden Villas sales market begins to develop in phases. The beginning of the year encompasses the high-season influx but in previous year the swing has been much more minimal as activity becomes more year-round than cyclical. Honua Kai Studios In the first half of the year, there was only one Studio listed for sale, Konea 521. Although at first glance it might seem as though the price of $975K may be on the high end of the spectrum, as can be ascertained from the Honua Kai Investment Analysis, the Studios are among the highest return on investments anywhere in Hawaii. It is not surprising that this unit went into escrow within 4 days of coming on the market. So far no Studios have closed at Honua Kai in 2018 (effective end of first half), but that's reflective of the lack of inventory, not absorption. For more information regarding possible investment options within the Studio niche at Honua Kai, contact us. Honua Kai 1 Bedrooms One of the most underserved niches at Honua Kai is the 1 bedroom micro-market, due to varying floor plans, view corridors (which has a HUGE impact on valuation) and square footage. In the first half of the year, of the 22 sales, 12 were one bedroom floor plans at an average price of $863K, median of  $850K. At an average price per square foot of $1,191, that represents one of the highest prices of any 1 bedroom units anywhere in Hawaii - the caveat being that location within the property has a significant role in establishing values, particularly as relating to lower level units facing the upcoming construction. To discuss specifics, contact us. With years of experience in the Honua Kai real estate market at a granular level, we are well poised to provide valuation opinion.  Honua Kai 2 Bedrooms The first half of the year saw 8 two-bedroom units trading hands. With those sales closing at an average price per square foot of $1,369. With multiple units selling near the $2M mark, and one actually going above it (Hokulani 409, selling for $2.26M). With the bulk of these being for premium units (not garden/mountain views), sales prices are reflective of the desirable locations. For those interested in exploring the 2 bedroom Honua Kai micro-market, contact us - a strong understanding of valuation and established relationships with existing owners (who may be open to selling, even if not on the market), we are well poised to assist our clients. Honua Kai 3 Bedrooms The 3 bedroom micro-market can be reasonably divided into three segments: Front row (units directly in the front, generally stacks 01, 02, 50, and 51), those directly behind front row (stacks 03, 04 in Hokulani and 49 in Konea), and centered (the 25-29 stacks). Of course the front row garner the highest prices, but within that segment there can be huge influx due to location (better views, away from kids pool, and in some cases a massive outdoor lanai space that rivals that of a home), and the centered stacks are the less expensive ones due to having a more 'funneled' view corridor and smaller floor plans. Two 3-bedroom units sold in the first half of 2018: Hokulani 603 for $2.9M ($1,494 per sq. ft.) and Konea 551 for $3.9M ($1,748 per sq. ft.). Both were arguably well within their respective fair market value range. The 3 bedroom micro-market (and arguably the high-end sector of the 2 bedrooms) have been impacted with the introduction of Luana Garden Villas, as these are slated to offer a similar space, with less density, and some property managers project that income will be in line with the more expensive Honua Kai 3 bedrooms. To discuss in more depth, contact us. Conclusion / Insights The Honua Kai real estate market continues to be one of the strongest in Hawaii, whether looking at absorption, steady increase in values (surpassing rate of comparable properties), demand, etc. It could be presumed that one of the many reasons why Honua Kai has been so successful is that other new properties that allow short term rentals are on the high end of the market and only offer large floor plans (i.e. Montage Kapalua, Wailea Beach Villas, Hoolei), whereas HK includes real estate options across various price points, starting in the $600K/$700K's, and floor plans to accommodate any preference. The fact that Honua Kai rental programs have consistently put some of the best ROI numbers anywhere in Hawaii is also a point of interest to prospective purchasers - read our Honua Kai Investment Analysis for more info. The introduction of Luana Garden Villas has rekindled interest, particularly by investors, and those sales will be a boost to the Honua Kai micro-market while elevating all other segments - particularly if the economy starts slowing down as a whole. To discuss in greater detail available inventory, projections, valuation, etc, please don't hesitate to reach out at 808-385-5034 (Alex) or 808-392-6657 (Ryan)