As one of the most active micro-markets on Maui, conditions at Honua Kai can vary greatly from the overall Maui real estate Market. As such, let's discuss the current state of the Honua Kai real estate market, broken down by unit size as that will provide the most context. To start, please use the map below as a reference of unit location within the complex, as that is arguably THE most critical component in valuation. Studios With the least amount of units, the niche of Honua Kai Studios will continue to be one of the most interesting to observe. Currently there is only one unit on the market, Hokulani 219. Of course, being on the 2nd floor of Hokulani has certain challenges, which must then be reflected on price. In the past six months, there have been two studios sold, Konea 615 for $891K and Hokulani 223 for $700K. The sale of the latter will prove to be critical in establishing valuation for Hokulani 219. The fact that Studios produce arguably the strongest 1 Bedroom Condos With the bulk of 1 bedroom units being mountain view, it is important to note that the stack (unit number) and elevation (floor level) can significantly skew statistics. This is an active niche at Honua Kai. Currently there is only one 1 bedroom unit actively on the market, Hokulani 930 - and priced at $930K ($1,217 per sq. ft.), as a mountain-view only unit, it becomes more difficult to argue that it's within the range of fair market value. There are 6 units in escrow at an average list price of $1,233 but it's important to note that 3 of those have ocean views. In the past 6 months, there have been 7 sales at an average sold price per square foot of $1,189. Two of those offered ocean views, but interestingly enough, we deem Hokulani 240 to have been the best value. With partial ocean views and an ideal location within the Hokulani tower, it may prove to be a strong purchase for the new owners. 2 Bedroom Condos With the bulk of 2 bedroom units enjoying at least some degree of ocean views (and some have very commanding views), overall the statistics will not be as easily skewed as the 1 bedroom niche. And there is a significant difference between the 1 bedroom micro-market vs. the 2 bedroom. Whereas 1 bedrooms only have one actively for sale and 6 in escrow, 2 bedrooms have 11 actively for sale and only 2 in escrow. The active market is priced at $1,257 per sq. ft. / $1.508M on average, while the 8 recent sales sold at $1,381 per sq. ft. / $1.66M on average - so where is the disconnect? Well, the bulk of the units sold enjoy premium locations with bigger ocean view corridors, while only 27 of the active 2 bedroom units have ocean views (and not as significant as on the recent sales). For information on which units we deem to be the best values, contact us. 3 Bedroom Condos Due to their price point, 3 bedroom units tend to stay on market longest (smaller pool of potential purchasers). Currently there are 3 units on the market, at an average price of $1,528 per square foot, but it's worth noting that only one of these is a true front-row unit - and that one (Hokulani 151) happens to be ground level on the center of the property, so although convenient access to the pools, the views and privacy will be more limited. There were three recent sales, at an average price of $1,632 per square foot, but two of those sales were trophy front row units (Hokulani 202 and Konea 551). Both Hokulani 404, which is on the outside southern perimeter of the property facing the new Westin, and Konea 449, which is interior second from front, offer strong values. Contact us to discuss. Luana Garden Villas Selection for the first phase of Luana Garden Villas has taken place and it was a huge success, with continuing high levels of interest among prospective Buyers for future release. For the $1.8M to $2.4M range, in my humble opinion these units are the strongest values within the Maui luxury real estate market. Expected delivery for first units is summer 2019 and seems to be within reason, given current building trends on Maui. To discuss valuation in detail, projected revenue, etc., contact us. It is worth noting that the construction of the Luana Garden Villas can reasonably be expected to have a measurable effect on rentability of units facing the construction - which can be deemed to be a cause for many units at Konea coming on the market. Conclusions We need more Studios on the market They perform well as rental revenue generators and have among the best ROI's. One bedroom units are selling at a remarkable pace, shifting to a Seller's market for premium units. The influx of inventory among 2 bedrooms will result in backlog of units sitting on the market, specially as some of the premium 2 bedroom Buyers shift their focus to the Luana Villas. The 3 bedroom market is more likely to have longer days on market based on lower absorption (i.e. a more shallow pool of prospective buyers). Trophy 3 bedroom units can sell but requires patience, whereas we are in dire need for inventory in the '25' and '29' stacks as the prices are generally lower. Honua Kai is, and can be reasonably expected to continue, one of the hottest markets in all of Hawaii. To discuss in greater detail, contact us by filling out the form below.
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