Pili Mai Dominates Poipu, Kauai Condominium Sales so far in 2020
New statistics released this month revealed that condo sales in Poipu are down in 2020. However, there is one project that is thriving — Pili Mai. Here is an analysis of the overall market on Kauai and the micro-markets within the island.
A Look at the Statistics From August 2020
On the entire Island of Kauai, Median Sales Price of condominiums is down from $585,750 to $402,000. While New Active Listings are up from 30 in August of 2019 to 52 in August of 2020, Closed Sales are down from 24 in August of 2019 to only 18 in August of 2020. And while Sales Volume on Single-Family Homes has actually risen slightly on Kauai in 2020 (From $56,886,287 in 2019 to $57,698,531 in 2020), it has gone down drastically for Condominiums, from $23,928,604 in 2019 to $8,697,000 in 2020.
Interestingly, these general island-wide condominium statistics representing one month of market activity are not representative of what we are seeing year-to-date in the condominium market in different micro-regions.
For this analysis, I am going to focus on the condominium market, which is the segment of the market that is overall down. To give a more accurate picture of the condominium market on Kauai, let’s look at a couple different regions on the island that are most closely related to the impact of tourism being shut down on Kauai due to Covid-19 travel restrictions: vacation rental zones Hanalei (Princeville) and Poipu.
- Closed Sales: Down 18.03%, from 61 in 2019 to 50 in 2020.
- Sales Volume: Down 10.9% from $43,573 in 2019 to $39,134,000.
- Median Price: Up 9.44%, from $630,000 in 2019 to $689,500 in 2020.
- Closed Sales: Down 39.42% from 104 in 2020 to 63 in 2019.
- Sales Volume: Down 41.21% from $81,162,833 in 2019 to $47,712,532 in 2020.
- Median Price: Down 4.71%, from $807,000 in 2019 to $769,000 in 2020.
In my assessment, the Princeville market appears to be functioning “normally,” with modest annual appreciation, and volume fairly consistent with previous years.
Even though the numbers are down in Poipu, there were still more sales and more volume than Princeville. Why are the numbers in Poipu down more drastically than Princeville? It could be because prior to Covid-19, the Poipu market activity was almost double that of Princeville. For some reason, residential sales remain active in the Poipu market, but condo sales have declined. Perhaps investors are waiting to see how things shake out?
On the other hand, with interest rates being historically low, purchasers are buying places they can see themselves living in. This theory could explain why one particular condominium project in Poipu, Pili Mai, accounted for almost 50% of the condo sales this year. People like Pili Mai as a second home option. It is the most modern project in Poipu built in the last decade. With this comes modern amenities that are popular with buyers and vacationers, like garages and air conditioning, and also a great resort-style pool and functional floor plans. Since they are newer, they are all up-to-date, maintenance fees are low, and they are easy to rent.
Since August statistics were published earlier this month, there have been six more sales closed, bringing the total condominium sales in Poipu this year to 69. Of these 69 sales, 34 of them were in Pili Mai, which accounts for almost 50%.
Here’s What the Numbers Looked Like at Pili Mai this Year:
- Number of ACTIVE LISTINGS: 9
- Average ACTIVE Price: $1,052,444
- Contingent Sales: 1 ($879,500 list price)
- Sold Listings: 34
- Average SOLD Price: $831,456
Bottom Line: Pili Mai is in High Demand
With construction completed earlier this year, the project sold out. Of the 34 sales this year, 23 were brand new construction units, that had been “under contract” for 3-6 months. The resale units that did enter the market went under contract fairly quickly — the median “Days on Market” was 10 days. There are currently 9 active listings in Pili Mai, which is the highest we have seen in quite a while. Now is a great time to have your choice of floor plans and views in this complex that is in demand. It could also be the opportune time to sell your Pili Mai unit if you have considered liquidating.
Are you curious about the value of your Kauai home or condo in today’s market? Try our free Automated Value Report:
Contact Brenna Harrington, of the Halladay + Harrington Group at Hawaii Life Real Estate Brokers to find out more about Buying or Selling on Kauai. 808.652.6212 / firstname.lastname@example.org