Prices Rise at Halii Kai at Waikoloa Beach Resort – August 2013 Market Update

In my March 2013 market report on condo sales at Halii Kai at Waikoloa Beach Resort, I noted that there had been only 4 sales in a five-month period. In the subsequent five-month period through August, a total of nine condos were sold. There are three sections/views at Halii Kai although all buildings have the same layout – that’s why it is important to look at sales according to their location.

Of these nine condos sold:

• Six had the garden/mountain view typical of the Coconut Grove area
• Two were on the golf course with ocean view
• One was in the corner that is not on the golf course, but with ocean view across the road

In all view locations, the trend continues: prices are up on sales of comparable units, even on short sales (which have become increasingly rare). Here are some other statistics to keep in mind if you are a prospective buyer reading this post:

• Median days on market is 69, but four of the listings had accepted offers in under 30 days
• Average sales prices is 96% of list price
• Coconut Grove sales are recording at 30% above the developer close-out prices of 2 years ago
• There is only one active listing under $1 million; 5 out of 9 active listings are direct oceanfront!

Only three buildings at Halii Kai are directly oceanfront (MLS# 259048) & (MLS# 260665)

First Non-Oceanfront $1 Million Sale Since 2009 Halii Kai Developer Sale

My business partner, Pam, listed side-by-side units Halii Kai 8F and 8G for the same seller. At the time, they had a door between them making a six-bedroom condo! Because these are mirror-image condos, same floorplan and same designer furnishings, they make a perfect market comp. One sold a year ago for $985,000 (constrained by appraisal); the other sold this week for $1,015,000 (no problem on appraisal).

While only a small increase in absolute terms, breaking the $1 million barrier and having appraisers acknowledge the improving market sets the groundwork for pricing as we move into the winter selling season.

In the golf/ocean view row, there are only three condos for sale at the moment, all of them three-bedrooms. Between the one in building 9 listed for $1,175,000 (MLS# 265371) and the one in building 11 listed for $1,200,000 (MLS# 258134), let’s be two buildings closer to the Ocean Club!

Golf and ocean view from Halii Kai 11F, a short walk to the Ocean Club amenities

Is $500,000 the New Floor for Halii Kai Sales Prices?

The trend in Coconut Grove sales suggests that Halii Kai sellers have new expectations. The three bedroom, two bath floorplan sold for $467,500 (partly furnished) in April; $550,000 furnished in July (16 days on market); and a condo on the other side of the same building was just listed for $625,000.

While there are two Halii Kai units that have been abandoned for some time of this same floorplan (and therefore will show up as short sale or REO listings), the only difference in the pricing between those units and a regular market sale is likely to be condition and furnishings.

There is a pending short sale on Halii Kai 16B, listed at $415,000. The unit is not only stripped even of appliances, it has a large ($30,000+) HOA delinquency to be covered by buyer. The mirror image condo which had all the upgrades (tile throughout, upgraded appliances, wet bar on the lanai) plus Pottery Barn furnishings sold in July for $500,000 – 9 days on market. The math works out.

The only Halii Kai condo for sale in the Coconut Grove area is (MLS# 265793) for $625,000

The job of a buyer’s agent at the Kohala Coast resorts is different than it was a year or two ago. I’m no longer looking for great deals for my clients; I’m just looking for something that meets their criteria that’s for sale.

A hui hou,

Beth Thoma Robinson R(B)
Direct: 808.443.4588
Email: beth@hawaiilife.com

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