My March 2012 update on the condo market at Halii Kai at Waikoloa Beach Resort predicted that Centex would soon sell out its remaining units and short sales would become less dominant. That’s exactly what has happened.
The great news is that in addition to the oceanfront sale of 15H report in the March post, we also finally achieved the first non-distress sale that was not oceanfront: Halii Kai 17H, a ground floor 3 bedroom with a peek-a-boo ocean view, closed for $520,000. Our Hawaii Life team also has a fabulous ocean view penthouse in escrow (hurry, the mirror-image unit is still available!).
Halii Kai ocean view penthouse condo for sale (MLS# 249216)…the mirror image unit is in escrow.
Developer Units, Short Sales and One “Market” Listing Close at Halii Kai This Quarter
The 12 Halii Kai listings that closed escrow since my most recent update break down as follows:
- 7 developer sales
- 4 short sales
- 1 non-distressed property
Seven of the twelve sales above had either buyer or seller represented by Hawaii Life! There are seven condos showing as contingent. Those include the developer’s three condos in escrow in Building 1; besides the ocean view listing mentioned above, we also have three short sale listings with accepted offers — one of which will close in early July.
Market Forecast for Halii Kai
That means for the first time in three years, there are no available short sales or foreclosures at Halii Kai at the moment! The 10 active listings range from $399,900 for a Mahana unit on the golf course to $1,695,000 for a Kipuka on the oceanfront.
As I’ve said before, there will still be a few bank-owned properties straggling onto the market at Halii Kai, and circumstances may yet compel a handful of owners to sell short. If you are calling me to say you are only interested in short sale or foreclosure listings, you may have a long wait for the next one and a lot of competition when it appears. Finding value now will require a more subtle knowledge of the market and the distinctions between the different locations within Halii Kai.
In the short run, appraisers will be using short sale and developer comps, so price levels can rise only gradually for financed transactions. Cash buyers for the most desirable properties may pay a premium, as we have seen recently in other Kohala Coast condo complexes from Kolea to Wai’ula’ula.
Initially, it would not be unexpected if there is a quieter period for Halii Kai sales during which buyers get adjusted to the new reality. Then, as has recently happened at Kolea, the quality and lifestyle at Halii Kai will drive a resurgence of sales.
What “Sells” Halii Kai: The Oceanfront Amenities!
It is truly the end of an era for the real estate market at a complex whenever a developer concludes its sales. At Halii Kai, it has become especially significant for other reasons. The oceanfront Ocean Club amenities have been transferred to the homeowners…and discussions are under way as to whether the developer will sell on the open market its one remaining property: the cottage that originally housed the sales team and later became the check-in desk for vacation rentals. The alternative is for the HOA to purchase it. Stay tuned for more updates!
A hui hou,
Beth Thoma Robinson, R(B)