Halii Kai Developer Almost Sold Out – Resort Condo Market Update

The story of 2011 for the Halii Kai condo market was not so much short sales and foreclosures, as it was the developer close out.  As we head into the final week of the year, they have closed on 25 Halii Kai units, have two condos in escrow, and are negotiating on two more deals.  They have only a handful of condos left for sale…more on that in a moment.

The popularity of Halii Kai is due in large part to its oceanfront amenity area.

2010 Halii Kai Sales

For reference, in 2010, what sold at Halii Kai was:

• 13 developer sales
• 7 short sales
• 1 REO (the only one for sale)
• 1 non-distress oceanfront resale
• and 1 mynah bird in one papaya tree (oops, sorry, pidgen versions of Christmas carols on the brain).

In other words, the developer sold twice as many condos this year as last.  They made the decision to compete with short sale and foreclosure listings, and did so successfully.  What’s more it was a stronger year overall in terms of total number sold.

2011 Halii Kai Outlook

As of this moment, with one week to go in the year, in addition to the 25 closed Centex sales, 2011 at Halii Kai looks like this:

• 4 short sales
• 3 REOs
• 1 oceanfront non-distress sale
• and 7 short sales showing contingent–which means: with accepted offers submitted to lenders for acceptance.

What happens next at Halii Kai?

Two of the short sales in escrow are Hawaii Life listings that got accepted offers in just the last week.  We are negotiating on another one.  So let’s look at the supply/demand balance as we head into the high season.

Developer inventory has become so slim that yesterday they released the first of their four model homes, for the groundfloor 3 bed/2 bath floorplan that they’ve completely sold out.  They have only four condos for sale in the Coconut Grove (garden/mountain view), all the larger 3bed/3bath townhouse still at around the $500,000 price point.   They have one ocean view condo, the smaller 2bed/2bath in Building 7, asking $484,000…and note that they began 2011 with a list price of $625,000 for that unit!  Not counting the model, they have only three golf-view units left.

The lowest priced Halii Kai condo is short sale 18B at $350,000 (MLS  248005); short sale 5B is asking $399,000 (MLS  248981)

On the resale market, we have only three short sales without offers.  There are 10 additional listings, half of which are at the $1 million price point and above.

Prediction

My prediction is that the remaining short sale listings and the resales below $500,000 will go quickly.  There is always demand for direct oceanfront and one of the two oceanfront listings is clearly the better buy for $450,000 less than the competition!

Halii Kai 15H (MLS 25035) is the best buy on the direct oceanfront row at $1,239,000; this is your view.

If you’ve been waiting and watching the market for Halii Kai condos, this is not a time to hesitate.  The developer is nearly sold out and the bulk of the short sales seem to be behind us.  We have seen prices begin to turn up at nearby condo communities such as Kolea, where appraisers are no longer checking the “declining market” box on their appraisals.  By mid-year 2012 that may be true at Halii Kai as well.

A hui hou

Beth Thoma Robinson R(B)

Direct: 808.443.4588  Email: beth@hawaiilife.com