Many Honua Kai owners were in town on Maui last month for the annual owner’s meeting that took place on Wednesday, January 29th in Ka’anapali, and thus, I thought it would be an appropriate time to get my latest Honua Kai real estate market update out for 2014.
I attended the all-day meeting and had some valuable take aways from the meeting. This is an important transition stage for Honua Kai as the developer is about 90% sold out of their inventory, and the HOA itself is growing into its own and learning how to best operate for the mutual success of all. Overall, I think there is a fantastic group of homeowners and volunteers serving the boards and various committees at the resort – I think the future for Honua Kai will continue to be bright.
As a general note on this blog, the sold stats were done late last month as I had the orignal draft of this blog ready to be sent out, but got delayed for various reasons.
I think it’s always awesome to kickstart a blog with an awesome “wow!” shot. This is the actual evening view from Hokulani #825, a 3 bed/3 bath, which I represented my clients on a purchase for late last year at $2.167M. Please see more details on this fine property below, or here: www.Hokulani825.com, as it is now offered for nightly vacation rentals through Hawaii Life.
Recently Sold Honua Kai Resale Properties
Since I completed my last market update for Honua Kai, there have been a total of 7 resale properties that have closed at Honua Kai. As has been the normal trend, the vast majority of these sales have taken place at the lower price echelons at Honua Kai. I think the main reason for this is simply based on what has been offered for sale at Honua Kai as resales, and the fact that it generally takes significantly less time to sell properties on the lower end of the price scale.
You will note from the spreadsheet above that the average DOM (Days on Market including escrow time) for resale properties at Honua Kai is about 163 days; the last data set (see last market update) that I measured last year was about 180 days, but there was an outlier sale that spent 2.5 years on market, and, thus, significantly skewed the figures.
Here are the videos that I have of the resale units that sold during this period. Please keep in mind that these are just amateur videos that I have shot for educational purposes, and some of which were directed for specific clients of mine looking at specific units.
1. Hokulani #937 Video – In the event that you like the floor plan and view plane of this property, I would highly recommend that you consider Konea #919 at $1.299M, as it is extremely similar to this property.
2. Hokulani #223 Video – There is only one studio unit in all of Honua Kai available at this time, which is a resale unit of Hokulani #837, and is a partial ocean view unit listed at $769K.
3. Hokulani #503 Video – Currently, there are a number of developer offerings of true ocean view two bedroom units like this that are priced in the $1.4-$1.7M range. Please feel free to ask me what I think are the strongest values.
Also part of the developer sales below is Konea #604, www.Konea604.com, a two bed/two bath property with outstanding mountain views and striking partial ocean views. Although I did not represent the buyers on this purchase (prior relationship with another local broker), they heavily utilized my blog and video series on Honua Kai to help with their purchasing process. Since their closing, we have since developed a very close relationship as we are now renting this property for them.
Recently Sold Developer Sales
In contrast with the resale properties – the majority of the sales action on the developer side of things took place at the higher price levels. I think the only reasonable thing to attribute this to is that they are close to 90% sold out of their remaining inventory, and the majority of what they have left are higher end two and three bedroom properties.
I did not include the fields for original price, listed price, and Days on Market because all of the developer sales prices match their original and last list prices, and the Days on Market is too hard to accurately measure with the way that they track their inventory.
You will note that the average developer price per square foot sales figure is substantially higher than the resale price per square foot. There are two very important things to take into consideration here:
- The first is that the developer is offering 2-3 years of HOA coverage on each one of these back end sales, which would effectively lower the net sales price about $21,000 on the studio unit up to potentially about $125,000 on the three bedroom sale that recorded at $3.649M.
- The second is that there is a far higher concentration of true ocean view units selling on the developer sales, whereas only 2 of the resale properties were true full ocean view properties.
Here are the videos I shot of the developer inventory that sold during this term:
2 Exceptional Properties Now Offered for Rent Through Hawaii Life Vacation Rentals
1. Hokulani #825, a three bed/three bath inner courtyard panoramic ocean view unit, is currently available for nightly rentals ranging in price from $650-$1,500 per night, plus taxes and fees depending on the season. Visit the details for this property here, www.Hokulani825.com, or reach out to me directly at SticeVacationRentals@gmail.com as I am the property manager for this residence.
2. Konea #604 is a larger two bed/two bath unit that has one of the most striking views in the resort, in my opinion, with beautifully contrasting panoramic mountain vistas and partial ocean views. This property is available on a nightly rental ranging in price from $299-$700 per night, plus taxes and fees depending on the season.
Want Hawaii Life Vacation Rentals to Expose Your Property to the World?
In the event that you are a new owner at Honua Kai, or are just looking for a change in your management company, here are three very strong reasons to consider Hawaii Life:
- International Marketing Exposure – No firm in the entire state of Hawaii even comes close to what Hawaii Life can do to expose your property to the world. HawaiiLife.com is Hawaii’s #1 Real Estate Search Engine and our hit TV series “Hawaii Life” has over 25 million people watching worldwide, and driving buyers and vacation renters to our website.
- Very Aggressive Management Fees – We offer a very compelling full service program at 20% of gross revenue for select 3 bedroom properties and 25% for almost all other properties at Honua Kai.
- Exceptional Service – I am the property manager of record at Honua Kai for HawaiiLife.com. I know how to sell this property inside and out, my wife and I live 2 minutes away in Ka’anapali, we live and breath the Ka’anapali resort life on a daily basis. We look to build long lasting relationships with our clients built on trust, respect, and mutual success. We treat your property as if it were our own. Our full service team is here at your service.
4 Resale Properties Under Contract
Currently, there are four pending non-developer sales at Honua Kai. All but one of these properties spent a fair amount of time on the market before going under contract.
- Hokulani #826 – 1 bed/1 bath 620 sq.ft. mountain view unit listed at $650,000. This property went under contract in 10 days, this demonstrates the value of accurate pricing and demand for entry level units at Honua Kai.
- Konea #110 – 1 bed/1 bath 730 sq.ft. mountain view unit listed for $729,500. One of the main attractions of these ground floor units is the high ceilings at 11.5ft., and the rental income, which is just off the charts at about $90k annual gross income.
- Konea #1024 – 1 bed/1 bath 750 sq.ft. mountain view and partial ocean view listed $769,000. The seller of this property paid $700k in 2010 and it is my opinion that this property will close in the mid $700k range.
- Konea #505 – 2 bed/2 bath 1,315 sq.ft. offered at $1,567,000. I felt that this was one of the best valued true ocean view two bedroom units at the entire resort and, after spending over 600 days on the market, this property is set to close fairly close to the asking price in early next month.
Konea #329 is a beautifully appointed 3 bed/3 bath ocean view unit with a designer furniture package in place that is extremely attractive, this is one of the more attractive developer units still available for sale at $1.97M. This is the same floor plan as the property we are now renting at Hokulani #825, but is about 250 sq.ft. larger.
Prices Going Up on Remaining Developer Inventory For Sale
The developer is raising prices
on 15 homes on Feb 28 as a pricing strategy to help ignite some sales on these homes – the tactic has clearly worked, as I believe that they have about 10 of the 15 homes now under contract. These are not huge price increases, usually only a couple percent, but the market on Maui is in a very good place and the same can be said about Honua Kai – your time is now.
As I mentioned earlier, the vast majority of the remaining developer inventory are higher priced two bedroom and three bedroom units. There are still three one bedroom plus den developer units for sale that are available in the high $700k range. Here is a video of one of these one bedroom plus den properties: Konea #612 Video.
I have the complete remaining developer inventory list, and work tirelessly on behalf of my buyer clients to really identify what property is going to work best for you based on three primary factors:
1. Lifestyle Needs – What is it that you are really using this property for, and what size and location will work best for your needs?
2. Short Term Cash Flow – I have a very good idea of what all Honua Kai units make in terms of gross rental income when best optimized for marketing and exposure. I also clearly understand all of the costs associated with ownership at Honua Kai.
3. Future Resale Value – Unfortunately, I don’t have a crystal ball, but I have been selling real estate full time throughout the island of Maui for the last 8 years, and I have a very good understanding of market cycles and what specific principles you want to adhere to when selecting a property.
Resale Inventory at Honua Kai
There are a couple resale properties at Honua Kai that are currently on my radar as strong values. Here is the complete list of all resale properties at Honua Kai: Honua Kai Real Estate Gallery.
Konea #701 is likely the top unit in the entire resort, offered at $5.3M. This is a 3 bed/3 bath 2,365 sq.ft. penthouse suite with an additional 1,375 sq.ft. covered lanai
It’s hard to say that the most expensive listing at Honua Kai (Konea #701) above is a strong value, but value can be defined in different ways. There is no question that this is one of the finest resort properties in all of West Maui, and is simply irreplaceable.
Another front line direct oceanfront listing just came on the market yesterday at $3.9M, and this is also a three bedroom unit in Konea #551.
Hokulani #446 is a two bed/two bath 1,100 sq.ft. partial ocean view unit on the northern end of the Hokulani building that I think is a very strong property, and represents value at its current asking price of $1.3M.
As an entry-level value unit, my favorite unit is Konea #516 offered at $695,000. This one bed/one bath unit is 690 sq.ft., and is located on the “sunny side” or southern side of Konea, and has spectacular views of the West Maui mountains and the sun rising from East Maui. There is a water feature on the ground level right below this unit, so I really like the soothing sounds of the water that radiate up into the property as well as serving as an attractive landscape viewpoint. Here is a recent video that I shot of Konea #516.
Whether you are buying or selling Honua Kai real estate, I am the Broker you can trust to promote your interests above all else.
Aloha from Ka’anapali, MauiJeremy Stice REALTOR (Broker) 808.281.2178 Stice@HawaiiLife.com
My Blog Series on Honua Kai Condos
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- 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.
- Honua Kai 3 Bedroom Ocean View Vacation Rental – Featuring panoramic ocean views, year-round sunsets, as well as modern and elegant decor and furnishings.
- Honua Kai 2 Bedroom Ocean and Mountain View Vacation Rental – “Sunny side” of Konea with spectacularly contrasting ocean and mountain views.
- Where in the World are Honua Kai Resort Condo Owners From? – 43% from California, 18% from Canada, 8% from Washington, get the full scoop here.
- August 2013 Market Update Report – My most recent market update report on what is taking place at the Honua Kai Resort.
- Honua Kai Resort Mid Year 2013 Market Update – We are beginning to see a clear trend that the resale market has become far more prominent than it has in the past.
- Canadian Financing at Honua Kai available with 30% Down Payment – 18% of the owners at Honua Kai, how are they securing these properties?
- Honua Kai Rental Income Figures – With some of the strongest returns of any ownership opportunity in Hawaii, Honua Kai deserves your strong consideration for short term cash returns on investment.
- New Ocean View One Bedroom Resale Unit Just Listed – Check out this post on my one bedroom best buy in all of Honua Kai.
- Honua Kai May 2013 Market Update Report – Read about the new developer price reductions and all the recent market activity down at the resort.
- 50 New Price Reductions on Two and Three Bedroom Units at Honua Kai – New developer price reductions announced on April 18, 2103.
- Honua Kai March 2013 Market Update Report – There has been a significant increase in the level of sales for two bedroom units at the resort. Read all about it here.
- One Bedroom/One Bath Mountain View Unit at Honua Kai Sold for $525,000 – Congratulations to the Kojima Ohana on their recent resale purchase at Honua Kai.
- 5 Remaining One Bedroom Plus Den Units for Sale at Honua Kai – They are sold out of developer one bedroom units but check out this video blog for this niche units starting in the high $700k range.
- Honua Kai 2 Bedroom/2 Bath Condo Sold a Seller’s Perspective – What our seller client had to say about our team selling their property for a $135,000 short term gain.
- 2 Bedroom Ocean View Best Buys at the Honua Kai Resort and Spa – Feb ’13 post on the best ocean view and partial ocean view two bedroom units.
- 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 January 2013 Market Update – What’s happening in the new year at Honua Kai? Are prices increasing?
- Honua Kai HOA Fees Increasing By 10% Effective Feb. 1, 2013 – What are the current fees, what do they cover, and what other costs of ownership are involved?
- 25% Down Payment Financing Options at Honua Kai – Get the inside track on leveraging your cash investments at Honua Kai.
- Canadian Couple From Vancouver B.C. Purchases a 3 Bedroom Honua Kai Unit for $1,900,000 – Did you know that many of the owners at Honua Kai are from Canada?
- 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.