While the North Kohala residential home market was strong in 2016, with more sales and higher prices than in 2015, sales of vacant land in the Hawi and Kapaau zip codes slowed compared with the year before. This marks two years of declining number of sales, although prices are holding firm.
2016 saw the first sales of 20-acre ocean view lots at the Hawi Nani subdivision (MLS# 294528)
Dramatic Drop in Number of Vacant Land Sales in 2016
Excluding the lower North Kohala communities, only 12 parcels of vacant land changed hands in Kohala in 2016, compared with 22 lots in 2015. Prices ranged from $165,000 for a 15,000 square foot residential lot on Kynnersley Road, to $960,000 for 44.6 acres at the top of Kapaau Rd. The large acreage had been purchased for only $600,000 in 2013, and although some improvements had been made, this sale is indicative of higher prices on ocean view acreage zoned for agriculture.
Newly subdivided lots feature grid electricity, county and ag water, ocean views (MLS# 298374)
The first sales at the new Hawi Nani subdivision in Hawi were recorded, with pricing around $600,000 for these 20-acre parcels with a well providing ag water. There was also a sale recorded of the newly subdivided lots above the highway in Kapaau. A 15.89-acre parcel sold for the $550,000 asking price its first day on market.
In general, preference continues for ocean view ag-zoned land outside of gated communities. Only one 10-acre parcel sold at Puakea Bay Ranch, for $325,000 after almost a year on market.
All but three of the sales were cash. The main source of financing for land in the area is Farm Credit Services of Hawaii.
2017 Outlook for Raw Land Sales in Kohala
Kapanaʻia, North Kohala oceanfront parcel of 23.6 acres, listed for $2.6 million (MLS# 600661)
Already in 2017 we have a landmark sale, the first large oceanfront parcel sold in North Kohala to a private buyer (as opposed to a public conservation purchase) since a 2012 sale of a Ranch at Puakea oceanfront lot for $3.6 million. Several contiguous properties are being sold. One 73-acre oceanfront property, listed by Hawaii Life, closed this month for $3,150,000 together with two non-oceanfront parcels of 23-25 acres sold for $550,000 and $600,000. An oceanfront parcel of 125 acres is also part of this purchase.
There is still plenty of undeveloped land for sale in Kohala, a total of 34 active listings. The most affordable are the vacant lots in the Hanaula Village neighborhood, asking around $205,000. The highest priced listing is $18.5 million for 498 acres. The property consists of 11 parcels of which three are oceanfront.
For more information about Kohala land for sale, feel free to contact me directly.
A hui hou,
Beth Thoma Robinson, R(B)