Market Update 3rd Quarter 2019

Market Update 3rd Quarter 2019 Just the stats..and the stats are all positive!

The market remains strong for Hawaii Island through the third quarter 2019. Prices are stabilizing to the 2006-7 peak relative to single family homes and in some cases resort condominiums are selling well below those levels. As an example, the Maile plan in the Villages at Mauna Lani is selling at a 30-40% discount to the 2006 peak with no apparent reason other than it was a large floor plan originally purchased for occasional owner use not primarily for vacation rental.

The market has changed since the “great” recession where gross vacation rents are being factored into the ownership “equation” along with purchase price and number of bedrooms. As an example of the current arbitrage, a 3 bedroom Golf Villas unit will vacation rent for $300/night where this large Maile plan may only rent for a 10% premium but cost +30-40% at $1.1m.

Additionally, noted market trends indicate declining sales in non resort areas indicating the possible affect of new restrictions on vacation rentals in non resort zoning.

Please contact me if you would like a particular market analysis of your community. I am happy to do so anytime.

Here are a few more statistics:

  • Island wide median sales prices ($550k) +5%. year/year increase.

South Kohala stats:

  • South Kohala condos-sales volume is up $155.750m vs. $184,300m for 2019.
  • South Kohala condos-units sold are about the same 237 vs. 243 for 2019.
  • South Kohala condos-median sales price is about the same $522,250 vs $525,000 for 2019.

Mauna Lani Resort:

Mauna Lani condos sold decline-80 units first 3 quarters of 2018 vs. 70 units first 3 quarters of 2019. Lack of inventory for sale in Kulalani due to legal actions preventing mortgaged purchases and less new inventory under $1m in KaMilo (new homes) are probably the cause. There are ongoing legal actions in Golf and Palm Villas as well as Kulalani.

Villages at Mauna Lani:

9-units sold first 3 quarters 2018 and 11-units sold first 3 quarters 2019.

Sold price average per floor plan:

  • Lehua-2018-$892k 2019-$913k
  • Maile-2018-$1.115m 2019-$1.016m
  • Kahili-2018-$1.55m 2019-$1.64m
  • Alii-2018- $1.75m 2019-$1.52m