Just Released, the 2022 Year-End Hawaiʻi Luxury Market Report Reveals Steady Increase in High-End Sales

The Luxury Market Report at a Glance: Real Property Values Rise as High-End Sales Increase

Hawai’i Life has just released our 2022 Year-End Hawai’i Luxury Market Report. Full of island-specific data, infographics, and the year’s most stunning, notable properties, the report reveals that across the island chain, the real estate market saw high-end sales increase steadily throughout the year.

Statewide, luxury sales surpassed every year in the past decade in both number of transactions and total dollar value, with the exception of 2021. Real property values also continued to rise in every segment of the luxury market, in spite of fluctuating interest rates.

While the end-of-year report does compare 2022 with 2021, it also offers a long-view perspective on Hawaii’s luxury real estate market for a more accurate picture of where Hawaii’s luxury market is and where it’s headed.

According to the report, neither signs of the bottom dropping out or of a recession had surfaced in Hawai’i at the time of publishing. While a pending recession is still up for debate, there’s no arguing that demand for high-end real estate across the chain of islands was stronger than ever in 2022.

In this post, we’ll look at the highlights from the year’s Hawai’i Luxury Market Report. For an overview of the luxury real estate market data and insights from across the island chain, company performance throughout the year, and what we expect for the future, keep reading!

Hawaii’s Luxury Market Report at a Glance: 2022’s High-End Sales Outpaced Nearly Every Year in the Past Decade 

According to the new Hawai’i Luxury Market Report, 2022’s high-end sales outpaced every year in the past decade in both number of transactions and total dollar value, with the exception of 2021. The second quarter of the year was especially active, with Q2 closings constituting 38.77% of the year’s luxury real estate sales by dollar value. What’s more, 34.36% of all high-end transactions across the State of Hawai’i closed in Q2 2022.

By the third quarter of 2022, the record-breaking run on luxury real estate that started in the summer of 2020 came to a rather sudden halt. By the end of the year, however, we had yet to see remarkably depreciating values. What we did see was a steady rise in real property values in every segment of Hawaii’s real estate luxury market (defined as sales at or above $3 million).

Location proved to play a strong role in influencing real estate values in the luxury market. As for the ultra-luxury market (defined as sales at or above $10 million), an impressive portion of this segment was driven primarily by the rarity that many of our ultra-high-net worth clients value most.

Sales above $3 million across the state included 488 sales in the $3 million to $5.99 million range, 101 in the $6 million to $9.99 million range, and 63 ultra-luxury sales of over $10 million for a total of 652 trades by year’s end. Although less than 2021’s unprecedented 838 transactions, this value is still the second highest in the past 10 years. Hawai’i Life, the top luxury brokerage in the state, represented nearly 12% of all luxury property sales in 2022 and still has sales pending in the luxury segment.

Oʻahu’s Luxury Real Estate Market 

In 2022, the growth that O’ahu’s luxury real estate market experienced all year continued, bolstered presumably by the opening of the international markets. By the end of 2022, Oʻahu saw 178 sales at or above $3 to $5.99 million and 32 sales of $6 to $9.99 million.

For all of 2022, O’ahu’s luxury condominium market accounted for 57 sales and land for 3 sales above $3 million. Making up more than 73% of all transactions over $3 million, it’s clear that single-family homes are back in favor, with 164 sales in 2022.

Comparing 2021 to 2022, luxury sales on O’ahu reached a total dollar value of $1.13 million by the end of 2022, a 3.67% decrease from 2021. Despite this dip, O‘ahu outpaced the other islands in high-end sales volume, up 88.72% from 2021 to $200.08 million. Of that, Hawai’i Life’s market share by dollar volume was 4.25%.

380 Lama Pl. Lanikai, Oahu. Listed by Erik Hinshaw R(B) $14,800,000

In terms of total trades in units at or above the $10 million mark, O‘ahu also saw more growth than Hawaii’s other islands. The amount of growth displayed by the island was nothing short of extraordinary, as O‘ahu had 14 transactions in 2022 versus just 7 in 2021, which is a 100% increase.

Hawai‘i Life’s sales in 2022 have been high and widespread across the island. And our listing inventory remains impressive, with notable listings in Diamond Head, Lanikai, and Kahala. Listed at $40M, Dillingham Ranch is currently the highest-priced listing on O‘ahu and Hawai‘i Life has sales pending in the luxury segment.

Kauai’s Luxury Real Estate Market

The Island of Kauaʻi garnered more attention this year, partially due to a North Shore estate that was listed and sold by Hawai‘i Life. As the highest-priced luxury sale in the state, it sold for $36 million after being on the market for only 40 days, which was substantially less than the island’s average days on market (DOM). Down -40.9% from 151.7 days in 2021, Kauaiʻs average days on market was 89.6 in 2022.

In 2022, 60 of Kauaiʻs trades were in the $3-5.99 million price range, 14 were in the $6-9.99M range, and 13 were at or above $10M for $568.03 million in total value. In terms of individual trades on Kaua‘i, Hawaiʻi Life represented 50% of all buyers and sellers in the ultra-luxury segment.

4585 Kuawa Rd. Kilauea, Kauai. Listed by Ben Welborn R(B) and Tiffany Spencer R(S) $6,875,000

Of the 87 total luxury transactions, there were 9 condominium sales and 5 land sales. At 73 transactions for the year, residential sales on Kaua‘i were especially strong. Most of the 87 transactions were centered on Kauaiʻs North Shore, which saw 47 sales. Explosive growth was also apparent on the South Shore, reaching 30 luxury sales.

At $2,407 per square foot, Kaua‘i’s sales price eclipsed the statewide average of $1,835 per square foot. And Kaua‘i exceeded statewide averages with an average listing price of $6.8 million and average sold price of $6.353 million in 2022.

Maui’s Luxury Real Estate Market

A look at 2022’s real estate sales figures for Maui reveals that they track with pre-pandemic figures. By the end of 2022, months of inventory for Maui homes above $3 million was up from 9.5 months in 2021 to 18.2 months, indicating that buyers began to gain more negotiation power.

Maui’s trades at or above $3 million continued to surpass pre-pandemic values in 2022. The Valley Isle saw 184 sales at or above $3 million, totaling $1.09 million. Although down 31.6% from last year, it represents an increase of 95.7% over 2017. Of the 184 trades on Maui, 13 were parcels of land, 72 were condos, and 99 were residential homes.

4557 Makena Rd. Kihei, Maui. Listed by David Richardson R(B) $22,500,000

Among the most notable sales that closed above $3 million were listings held by our team on Maui, including a rare 2-parcel offering in Kihei that sold for $8.38 million in March. Another transaction that affirmed Maui as attention-worthy was a 73-acre oceanfront estate in Haiku that sold in June for $15 million. Of the four most-populated islands in Hawaiʻi, Maui had the most trades over $10 million, with 20 total transactions in the segment.

Hawai’i Life’s Maui agents and brokers represented buyers and sellers in nearly 12% of Maui’s highest-priced closings. Currently, Lumeria Maui, a retreat center in Maui’s Upcountry, is Hawai’i Life’s highest-priced listing on the island at $25 million, and we have additional sales pending in the $10M+ luxury segment.

Hawaiʻi Island’s Luxury Real Estate Market

In 2022, Hawaiʻi Island saw $927.4 million in total transaction volume in the luxury segment, which is more than double the $455.5 million seen in 2017, before the pandemic.  Although the state of Hawai’i experienced a dip in sold listings, there were 157 luxury transactions on Hawaiʻi Island, which is only -24.15% less than 2021.

The Big Island’s luxury market remained strong in 2022, with 64 condominium sales, 73 residential sales, and 20 land sales above $3 million. Of the four most-populated islands, Hawai’i Island saw the most land sales, including the largest parcel of land sold in the entire state of Hawaiʻi. The 1,834 acre parcel in Na’alehu sold for $4.69 million in November.

62-3918 Kaunaoa Iki Rd. Kamuela, Hawai’i Island. Listen by Jim Allison R(S) $8,400,000

In 2022, we saw more seller buydowns and creative financing, with buyers who wanted to move into the right home, immediately. As such, it’s no surprise that Hawaii’s luxury homes stayed on the market for only 69.2 days in 2022. Down -52.2% from 144.8 days in 2021, the island’s average days on market (DOM) was significantly less time than other islands.

Hawai’i Island home buyers paid an average of 97.8% of the listing price for their luxury property in 2022. And some of Hawai’i Life’s highest residential trades occurred on the Big Island, including 37 total sales of listings above the $3 million mark, for a total of $221.74 million.

Looking Ahead

As 2023 unfolds, Hawai’i Life will continue to take a bigger picture view of the luxury market, examining data from the past decade for an accurate understanding of where Hawaii’s luxury market is and where it’s headed. Our capacity, experience with agency in all its forms (buyer, seller, and dual agency), and ability to see this big picture continue enabling Hawai’i Life to improve our market share in this coveted space of Hawaiʻi luxury real estate.

Looking ahead, a remarkable amount of data still points to fundamental economic strength in Hawai’i. Demand for luxury homes in Hawai’i still exceeds the available supply and we expect that this will continue in 2023. To see some of the most breathtaking luxury homes from across the chain of islands, read the 2022 market report now.