The market at Honua Kai and the resort itself was quite busy during the 2012 Holiday season moving into 2013. I think we will start to see the emergence of quite a few more resale units sell as opposed to the developer inventory dominating the overall market.
This is a cool app called Nudge that I am using to concisely communicate market activity for both buyer and seller clients
Are Honua Kai Prices Increasing?
It is important to answer this question very carefully and I will do my best here. I don’t think that the developer will be able to sustain their rate of sales on the higher end inventory without making some important changes. I have heard whispers that they may consider furnishing many of their unfurnished units that they have for sale and I think this would be a huge bonus because purchasing and dealing with furniture installations can be very difficult on Maui with our limited options that we have, plus who wants to deal with this on his/her vacation time?
I do think that they will need to continue to cut prices on the multi-million dollar inventory that they still have to sustain a healthy amount of sales. The vast majority of the resale units on the market are simply still overpriced, and I think still need price corrections and better marketing efforts to get them sold.
I think we may see price increases in new units coming to the market where the buyers purchased the units at very attractive prices, which most likely took place in 2011 after the developer did drastic price reductions, 35% Price Reductions on Condos For Sale at Honua Kai Resort. I believe many of these are in a position to to sell units at a reasonable profit should they chose to.
Last week I blogged about 4 New One Bedroom Listings at Honua Kai that were listed about $100K more than what the owner paid for them to the developer in 2011. Within 5 days, 3 of the 4 units here are already under contract. I am not surprised at all that these units went under contract so quickly as there is a very high demand for lower end Honua Kai properties and extremely low supply.
When we listed Hokulani #220 (the top property featured in the above postcard) we were able to procure successful contract on this property in 56 days after we reduced the price from $849,000 to $819,000. It is noteworthy to point out that our seller clients were some of those that purchased a developer unit at an exceptional price of $640,000 in 2011. Be sure to check out all the details of this fine unit and the resort itself at www.Hokulani220.com.
For future resale sellers, I still think that as with any listing, accurate pricing is an important component of marketing the unit. I think many sellers are in a position to make a profit on the sale of their unit, but it is important that this profit margin is reasonable and is still in line with the overall state of the market else the property simply will not sell. We understand accurate pricing and international exposure at Honua Kai and are happy to offer an obligation-free consultation on said items.
This is a postcard that I am sending out this week which asks the question, “Are Honua Kai Prices Increasing?”
Recently Sold 3 Bedroom Honua Kai Unit
Just before year’s end I was able to help a buyer client secure a fantastic deal of 3 bedroom/3 bath ocean view interior courtyard unit at the Hokulani tower for $1,900,000. This was the first three bedroom unit to sell at the resort in over 6 months and one of two 3 bedroom sales in Honua Kai in 2012. The developer demonstrated strong motivation to sell this property and I can share intimate details if you would like to reach out to me. Here is what our buyer client had to share about their experience.
“My wife and I retained Jeremy Stice to assist us with the purchase of a 2nd home in Maui. Jeremy was easy to work with, very accommodating and very knowledgeable about Maui real estate. We were torn between two different regions of the Island and he showed us several homes, both new and old, at both ends that were within our price range.
We enjoyed his company and the fresh fruit he provided while touring us around. He not only assisted with the negotiations on securing what we believe was an attractive price, he went above and beyond the call of duty dealing with furniture issues I just could not deal with from Canada. He was delightful to work with and I would not hesitate recommending him to anyone contemplating a real estate sale or purchase in Maui.”
-Paul and Colleen McElligott of Vancouver, BC
Read the full success story at: HonuaKaiSold.com
What’s Been Selling at Honua Kai Recently?
As I mentioned in my market synopsis app above, there are currently 29 developer units under contract and 4 resale units under contract. Since I did my last market update at Honua Kai – Honua Kai November 2012 Market Update – there have been 14 newly recorded sales shown below.
All of the sales noted here were original developer units. You will note that there is a good mix between unit types and units that were purchased with all cash and those that were financed. Check out the price per sq.ft. for those units selling with an ocean view and you will see how much of a factor this is in overall selling price.
The Ka’anapali Condo Market
Maui 2012 Year End Condo Transactions vs. 2011 Year End Condo Stats in transaction volume
The above image is courtesy of my friends at Old Republic Title and Escrow and I just thought it was cool way to illustrate on what is taking place on the “head” portion of the Maui real estate market.
You will note that the transaction volume for real estate in Ka’anapali where Honua Kai is located is up 30% from year end 2012 to year end 2011. The median prices of real estate area dropped by 23% and the average prices dropped by 19%. You will note that the average prices condos as a whole on Maui were down 3%, but the median prices were up 16%. Read more about Maui 2012 Year End Condo Stats.
My personal feeling is that in 2013 we will start to see price increases in the Ka’anapali condo market as inventory at Honua Kai and other resorts has diminished drastically, and the economic principles of supply and demand will prevail.
Extremely High Rental Occupancies at Honua Kai
I have talked to a number of owners and property managers who have said that the popularity of the resort continues to grow and that many units are averaging 85% occupancy throughout the course of the year, this is simply incredible and I don’t think there are many resorts on Maui that perform this well. Honua Kai is consistently rated as one of the top hotel operations in the Lahaina region on many reputable travel sites. I know that the resort was basically running at full capacity this holiday season and it was very tough to secure a booking. I have talked to a number of owners at the resort that are renting the units out on their own and are achieving over 90% average occupancy for the year, which is basically as good as you can get for a property like this.
Thinking About Selling at Honua Kai?
The Maui & Honua Kai Condo Market is Hot!
We understand accurate pricing and international exposure at Honua Kai. We had 4 sales at Honua Kai in 2012 directly from our series of blogs on Honua Kai because buyers are easily finding them on the web and we know how to put deals together.
Interested if you have equity in your property?
Request a free price analysis and view our results proven marketing plan to get it sold. We have Honua Kai buyers and are in need of more inventory to sell. Visit SticeTeamMarketing.com to view our listing presentation and see why HawaiiLife.com is Hawaii’s #1 real estate website with roughly 150,000 visitors each month. We directly market all of our listings to our company database of 80,000 buyers and growing.
Buying at Honua Kai?
I am very knowledgeable about the Honua Kai Resort and Maui as a whole, I was born and raised on the island of Maui and know the island extremely well, so I can help you identify what is really going to work best for you and negotiate on your behalf. Be sure to check out a couple of our success stories in helping buyer clients at Honua Kai to see what they had to say.
My Honua Kai Blog Series
- Honua Kai Resort in Kaanapali, Maui – Start here, as this blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.
- Honua Kai Resort Real Estate For Sale – Kaanapali, Maui Condos For Sale – This post focuses on the inventory actively for sale and where all the units are located.
- 4 New One Bedroom Listings at Honua Kai – Posted on January 2013 be sure to check out these best buys priced under $550K
- Honua Kai November 2012 Market Update – The latest news after a crazy year of selling
- Honua Kai January 2012 Update – Why Honua Kai is the hottest deal in town right now
- Honua Kai Purchase Process – an owner’s perspective of purchasing and experiencing the resort.
- 35% Price Reductions on Condos For Sale at Honua Kai Resort – Read about how the developer dramatically slashed the prices at Honua Kai and where some of the best deals are at.
- Price Reductions on Honua Kai Resort One Bedroom Units – video blog on 1-bedroom units that are Screaming Deals.
- Honua Kai Resort in Kaanapali – Best Two Bedroom Deals – video blog on 2-bedroom units that are Screaming Deals.
Aloha,Jeremy Stice R(S) Stice@HawaiiLife.com 808.281.2178