The closing of Halii Kai 13D, an upstairs corner two-bedroom condo with “cruise ship views,” marks the first sale of an oceanfront unit at Halii Kai in two years. The price/square foot of this $1,300,000 sale was 11% above our 2012 sale of Halii Kai 15H.
Sunset as photographed from the lanai of Halii Kai 13D, oceanfront condo sold for $1,300,000
Oceanfront Location Premiums Widen in Improving Real Estate Markets
There are only three direct oceanfront buildings at Halii Kai at Waikoloa Beach Resort and sales prices for those condos command a premium over those on the golf course. Two buildings – 14 and 15 – were part of the developer’s initial release in 2005. Building 13 was held back for the second release in March 2006 because it is the closest to the Ocean Club and the developer wanted to coordinate construction of the restaurant and pool area with construction of Building 13.
Pricing on Building 13 was also reduced a bit from the levels of Buildings 14 and 15. In those buildings, the upstairs 2 bed/2 bath sold for over $2 million; Halii Kai 13D sold the first time for a little less, $1,909,650. Why the funny number? Because the developer priced each building on a $/sq. ft. basis…in this case, $1,450/sq. ft. for the 1,317 sq. ft. unit.
Having sold the very first resale at Halii Kai after leaving the developer sales staff, I’ve kept a spreadsheet to track sales prices through the downturn and back up again. Much as the appraisers tell us, it shows that location premium shrinks in a down/buyer’s market, and then widens again when the market recovers. Halii Kai Coconut Grove (garden view) prices fell less over the cycle, but have less upside. Halii Kai oceanfront prices fell to under 50% of original sales price for distressed units; today’s oceanfront sale is at 68% of the peak price.
The sale is a win-win. Our seller got more than the previous comp from two years back; the buyer still has plenty of upside potential.
Oceanfront Halii Kai Condos for Sale
Halii Kai 15F penthouse three bedroom condo furnished and has never been rented (MLS# 259048)
There are currently three oceanfront properties listed at Halii Kai. Two of them are also in Building 13. There is the 3 bedroom groundfloor 13H listed for $1,435,000 (MLS# 264783) and the 2 bedroom groundfloor 13C listed for $1,129,000 (MLS# 269336). Both of these units last sold as distressed properties (REO/foreclosure for 13H and short sale for 13C), which means the sellers have a lot of room in their pricing to make a profit over what they paid.
Halii Kai 15F (disclosure: this is our listing) is also on its second owner. However, in this case, the sellers have it listed slightly below what they paid (which was about 20% below the original developer sale price). This three bedroom penthouse has never been rented by either of its two owners. The current seller built an oceanfront house and is trading up.
Is Halii Kai 15F a relative bargain? The unit has three bedrooms, a lanai off the dining room and another off the master bedroom, 1,677 sq. ft. without the lanai space, a garage and upgraded appliances, offered for $2,000,000. My point of reference is Mauna Lani Point, a complex where some of the units have similar views. Mauna Lani Point F201, 2 bed/2 bath condo, built in 1998 with a carport instead of a garage, just sold for $1,700,000. The only 3 bedroom for sale at Mauna Lani Point is listed for $3,750,000 (MLS# 271160).
Come compare for yourself!
A hui hou,
Beth Thoma Robinson R(B)
You can subscribe to my blog posts, or see a video of Pam and I showing Halii Kai’s oceanfront club and an oceanfront condo, at pb.hawaiilife.com!