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Halii Kai – Fewer Condos Sold in 2018 to Date

My Halii Kai condo sales update in October 2017 described a “surprisingly” strong market. That continued through the fourth quarter. But the 2018 winter season, normally the most robust for sales, has surprised in the other direction with only four closings year-to-date.

Halii Kai oceanfront condo views

View from oceanfront condo Halii Kai 15C (MLS 615690), with the Ocean Club exercise hale visible to the left.

Only Four Halii Kai at Waikoloa Condos Sold in 2018 YTD

There is a bit of a disconnect between the usual reporting of market and sales statistics on a calendar year basis, when our high season for resort condo sales typically runs from Thanksgiving through Easter/spring break. But year-on-year comparisons are still valid.

For whatever reasons, Halii Kai had an exceptionally strong year in 2017, with a total of 18 sold, almost double the 10 condos sold the previous year.

Summary – 2017 Sales at Haliʻi Kai
# Lowest Highest Average Median Mode
Listings 18 $525,000 $1,495,000 $758,711 $639,500 N/A
MLS Sale $ 18 $510,000 $1,495,000 $730,250 $627,000 $555,000
DOM to sale 18 6 373 144 111 25
Sale/Current Price 18 92.7% 100.0% 96.3% 96.5% N/A

The sales pace was strong throughout the year, although 10 sales were closed by mid-May, compared with the four we have seen in 2018.

And…of those four sales this year, two of them involved the same parties, as one of our Halii Kai owners decided to trade up to a larger unit, with beautiful ocean views down the golf course, and sold their “starter” unit.

Halii kai ocean view condo for sale 10B

Halii Kai 10B (MLS 296639) has this view, in the same building our other clients traded up to!

With multiple listings at Haliʻi Kai, I can affirm that we have robust interest in terms of requests for showing. We also had very high occupancy in vacation rentals this winter, and found it difficult to accommodate many of the requests. Perhaps that accounts in part for the smaller number of closings.

Strong Selection of Halii Kai Condos for Sale

Oceanfront upgraded appliances at Halii Kai

All Halii Kai condos have beautiful kitchens with African mahogany cabinets and granite counters. Only the oceanfront have the upgraded Subzero, Wolf, Fisher&Paykel appliances.

Recall that at Haliʻi Kai, there are 24 buildings identical other than location and view. Current condos for sale range from a 3 bed/2 bath ground floor unit in the Coconut Grove (garden view) asking $649,000 (MLS 610542) to a 2 bed/2-bath ground floor unit directly oceanfront asking $1,200,000 (MLS 615690) to a pair of 3 bed/3 bath penthouses with golf/ocean views near the Ocean Club listed just under $1,300,000.

Where are we in the cycle? The oceanfront unit is listed 24% below what the owners paid in 2007, and that is comparing a furnished unit with rental track record to an unfurnished developer sale. But the Coconut Grove was finished and sold after the real estate market crashed, so the asking price of 19H is 30% over what that owner paid in 2009.

Halii Kai 12F Lanai View

Golf course and ocean view from Halii Kai 12F, penthouse 3 bedroom (MLS 617263)

The other way in which the strong rental market at Halii Kai factors into sales is that many sellers are content to wait for “their price” and collect the rental income. Let me know if youʻd like to see some rental history on any of the Halii Kai units for sale.

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Mac Watson

May 17, 2018

Awesome place for vacation.
Your rental and accommodation facility is great.
Thanks for sharing with us.
You can also book cabin rentals finger lakes with us at Cobtree. This is the one of best place for vacation trips.

Waiting for the next post…

Scott Conrad

May 17, 2018

Beth, I think it would be nice to see someone be open an honest with a post about the ROI on a rental return on buying one of these units or any rental in Hawaii.

Beth Thoma Robinson

May 17, 2018

> Hi Scott, Let me look through past blog posts. Our Hawaii Life (and many other) agents are always clear when we show these resort properties that an owners is rarely even cash flow positive if they have a mortgage. Those that buy low and sell high (as some did in 2009-10 and took profits more recently) can get a strong ROI. But true investors are rare. Most folks just want to offset some of their costs of ownership.

Thanks for the suggestion, it is a post worth writing!

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