It has been four months since my last post about Halii Kai condo sales. Despite the low inventory, there have been four closings in this period. What is a huge change for this oceanfront Waikoloa Beach Resort condo complex is that of the four sales, only one was a short sale and none were developer sales. Of the three resales, one of them was a 2011 developer sale, sold at a profit!
Halii Kai owners and their guests have access to private oceanfront amenity area
Recall that in July I was speculating that with the developer sold out and distress sales becoming scarce, Halii Kai was set to follow Kolea’s path towards rising prices. As we move into the winter high season, the balance of supply and demand suggests that forecast will still hold…but in the meantime, savvy buyers have snagged a handful of deals.
Halii Kai Short Sales Continue at Slower Pace
At the start of the year I predicted that short sales would become less dominant. While only one out of four sales in the third quarter was a short sale, both of the units currently showing contingent in the MLS are short sales.
There is a new short sale on the market, the two-bedroom ground floor Halii Kai 18C (MLS# 257986) which is the mirror image of my listing 18B that has an accepted offer. By the time you read this post there is a good chance that one will also have an accepted offer working through the short sale process.
To the best of my knowledge there are still three units at Halii Kai that will eventually show up as bank-owned. They have been empty for several years and will eventually work their way through the foreclosure process. Over at Kolea, two of my buyers snagged similar REOs this year by being patient and prepared.
Whether that will happen this selling season is unclear; what that means is that Halii Kai buyers will need to start thinking less about the next distress sale, and focus on finding deals among the market listings. (If you are looking for a bank-owned deal and prepared to compete for it when that multiple offer situation arises, email or call me.)
View Premium Begin to Increase at Halii Kai
There are currently only eight active Halii Kai condo listings (there have been as many as 30 at times in the past!). The distribution of current listings according to view is interesting:
- Two are oceanfront
- Four are along the golf course varying degrees of ocean view
- Two are garden view
Because of the scarcity of supply, the view premium is starting to widen again. In other words, I am not yet seeing appreciation yet in the Coconut Grove (garden-mountain view). The sale of 23F in August, partially furnished, for $468,500 was comparable to what the final developer units of the same floorplan sold for. However, Halii Kai 5D with just a little ocean view sold for $590,000 in August – and this is a unit that was purchased from the developer a year earlier for $472,500!
Best Buys Among Current Halii Kai Listings
On the oceanfront, Halii Kai 13C for $849,900 (MLS# 253104) is the best buy
The two most recent oceanfront sales were both our listings, both the same floorplan, and the increase between the two was 19% in a 5-month period. The current oceanfront listings are miles apart when you calculate their $/sq. ft.
The smaller two-bedroom is offered at $785/sq. ft. Buyers have been reluctant because they can see it sold in 2010 as a short sale for 30% below current asking price. Yet the $/sq. ft. is right in line with the two most recent oceanfront sales.
The asking price for the other oceanfront condo, Halii Kai 14H (MLS# 195154), is 35% above our most recent sale…yet there may be a buyer for it this season after 5 years on the market. That was the price jump for top floor Kolea last year!
Halii Kai 7A (MLS# 256589) is my ocean view best buy for $589,000 asking price
My other best buy pick is an ocean view, 2 bedroom condo in Building 7 that is listed for 35% less than the identical floorplan in Building 8. You may have overlooked it if you’ve been searching online as it lacks interior photos. But you can do a lot with furnishings for the $200,000 price difference…let alone over $15,000 in prepaid HOA dues!
A hui hou,
Beth Thoma Robinson, R(B)
Email: beth@hawaiilife.com
Direct: 808.443.4588
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