For this month’s “hot topic” I will be touching on the eruption of Kilauea volcano and its potential impact on the Big Island’s economy. The vast majority of the Big Island is relatively unaffected by the volcanic activity except for certain areas on the east side of the Island, specifically the lower Puna District. In reality, the volcanic activity is affecting approximately 1% of the Big Island’s 4,028 square miles of natural beauty. As we all know, the media likes to put a certain spin on events. This is definitely the case here on the Big Island over the past days. This is the 35th year of an eruption phase which began in 1983 at Kilauea volcano, the location of which is in a fairly remote area 100 miles southeast of our resort coastline and on the other side of the Island separated by our massive 13,000 plus foot high mountains.
Deciphering just how much Kilauea’s current eruption may impact the Big Island’s economy is obscure at this point. Tourism boomed throughout Hawaii in April, which saw a 13.4% increase statewide in visitor spending according to Hawaii Tourism Authority. Where those numbers are heading now with the national and international media coverage of the volcano is anybody’s guess. The expected losses for local businesses who have been impacted does not necessarily mean an overall economic downturn from last year. Because of how massive the Big Island’s expected economic growth was projected for 2018, the impact of the volcano may simply erase the increase, or even just take a bit off the top. Executive director of the Island of Hawai’i Visitors Bureau Robert Birch was quoted saying, “I expect them to be pretty flat if anything,” when referring to June through August booking numbers compared to last year. All things considered, Carl Bonham, executive director of the University of Hawaii Economic Research Organization (UHERO) and professor of economics at UH-Manoa claims the volcano is too capricious and data on lost bookings is not uniform or reliable enough to accurately project what summer tourism might look like, or precisely how drastically the Kilauea eruption will affect the economics of Hawaii Island and the State. Only time will tell.
As for Mauna Kea Resort and the Kohala Coast, there is a very little noticeable difference today from the days and weeks prior to the most recent volcanic outbreak, just another gorgeous day.
Please find below the Mauna Kea Resort May real estate market update highlighting recent sales, new listings, and general community events. I hope you find this information interesting and helpful.
May Sales
May witnessed an abundance of activity, with 8 closed transactions within Mauna Kea Resort.
Mauna Kea Realty represented the Buyer of Kauna’oa #3 which was the highest priced residential sale within the resort in 2018. The almost new 4 bedroom, 4.5 bath Shay Zak designed home located within the private and gated community of Kauna’oa at Mauna Kea sold for $6.9 Million in May. (Click Here) to view the property details. Also, the flagship Lot #6 within Kauna’oa sold in early May for the 4th time since 2010. The lot sold for $3.49 Million to a Buyer with plans to build a custom house in the near future. (Click Here) to view the property details.
The last two original Wai’ula’ula developer detached homes 419 and 420 in the the Uplands community sold in the month of May. Wai’ula’ula 419, which sold for $2.225 Million, is a 4 bedroom 4.5 bath home comprised of approx. 3,300 sqft. (Click Here) to view the property details. Wai’ula’ula 420 sold for $2.095 million and is 3 bedrooms and 3.5 bath home made up of approx. 2,860 sqft. (Click Here) to view the property details. In addition, a downstairs unit in the M building within Wai’ula’ula sold for $1.21 Million. The approx. 2,000 sqft 3 bedroom, 3 bath unit enjoys ocean, mountain, golf course, and Maui views. (Click Here) to view the property details.
Mauna Kea Realty represented the Seller of a custom single family home located within Moani Heights. The custom home sold in late May for $2.15 Million. The approximate 3,000 sqft home consists of 3 bedrooms and 4 bathrooms, sits on a large, wide lot offering exceptional views of the ocean, coastline, Maui, and sunsets. (Click Here) to view the property details.
Lastly, two units in the Uplands condominium community of Kumulani sold in May. Mauna Kea Realty represented the Seller of an approx. 1,500 sqft, 2 bedroom, 2 bath upstairs Unit J-4 that sold for $750K. (Click Here) to view the property details. Unit H-4, which sold for $925K is a 3 bedroom 2 bath floor plan consisting of approx. 1,500 sqft. (Click Here) to view the property details.
New On The Market
Mauna Kea Realty recently listed Lot #23 within Kauna’oa at Mauna Kea. Lot #23 is one of the best priced building sites within the community and one of the closest parcels to the beach access trail. Where else at the Mauna Kea Resort can you own a property and be within an easy 5 minute walk to Mauna Kea Beach Hotel and the white sand beach of Kauna’oa Bay? Overlooking the private 3 hole golf course and lake of Kauna’oa, Lot #23 has approximately 16,673 sqft of net build-able area. Already graded and ready to go. (Click Here) to view this spectacular new listing.
For a Complete List of Condominiums and Residential Properties Currently Available at the Mauna Kea Resort (Click Here).
For a Complete List of Vacant Land Properties Currently Available at the Mauna Kea Resort (Click Here).
Upcoming Local Events
June 24, 2018
KONA MARATHON, HALF MARATHON, QUARTER MARATHON & 5K RACES – WAIKOLOA BEACH RESORT:Featuring all four traditional races – Marathon, Half Marathon, Quarter Marathon & 5K. An estimated 2,000 runners of all ages and abilities will be participating for prizes, health and enjoyment, and raising money for charities. The race will start and finish at the Waikoloa Bowl at Queens’ Marketplace. The Kona Marathon course has one gentle climb not exceeding 175 feet above sea level. For online registration and event information, visit KonaMarathon.com.
WAIMEA OPEN AIR FARMERS MARKET: Make sure to visit one of my favorite local events, any of Waimea’s 4 Farmers Markets. Open weekly, Wednesday’s and Saturday’s with numerous local vendors and live music. Visit www.lovebigisland.com for further information.
Tracy Stice
June 15, 2018
Jake, Thanks for the update. If you watch network news, it looks like the whole state is blowing up and those of us who live here know better. Since the volcano makes spectacular video, it make more interesting news . I was in Hilo two weeks ago teaching a class and I was only 20 miles from the eruption and I could not feel, see or hear anything that would have informed me of the eruption. As you say, Kilauea has been continuously erupting since 1983, so Pele just moved her party over a little. The Realtors in Hilo were real busy when I was there as many of the people who lost their homes were already buying property in other areas nearby.
Hawaii will recover and now there is more of it !