Halii Kai Condos – 2013 Review and 2014 Outlook

With thirteen condo sales in 2013 and eighteen active listings as we begin 2014, at first glance Halii Kai at Waikoloa Beach Resort would appear to be a buyer’s market, typically defined in real estate terms as over six months of inventory at the current absorption rate. But when I say “buyer’s market,” most prospective buyers would think that means anxious sellers, leverage in price negotiations, deals to be had. That’s not exactly an accurate description of the market at Hali’i Kai.

Ocean and golf view from Halii Kai 8A, price just reduced to $799,000 (MLS# 267028)

I think I’m going to have to devise a new term for neighborhoods like Halii Kai and Kolea at Waikoloa Beach Resort. Something that indicates the subtleties. Both of these communities have a wide range of value, with different floorplans and views. While there are plenty of Halii Kai listings relative to demand in aggregate, most listings are in the higher-priced sector, while most of the recent sales were at the lower end of the community’s price points.

Halii Kai 2013 Sales – Higher Price Trend Firmly Established

In my mid-year review of Halii Kai condo sales I noted that prices were up even on the increasingly rare short sale listings, and that Coconut Grove (garden view) resale prices were already 30% above developer close-out levels of two years prior.  

At mid-year, there were only 9 units on the market, and only one of those was under $1 million, a particularly noteworthy fact, given the same post reported the first non-oceanfront sale over $1 million since 2009.

The year ended with thirteen recorded sales, of which four were short sales. Sold prices ranged from a low of $350,000 (exclusive of furnishings) for a short sale of the smaller 2-bedroom in the Coconut Grove, to a high of $1,015,000 for the larger three bedroom, beautifully furnished, on the golf course with lovely ocean views.

The average sales price to list price was tight at 97%, and these had been on the market anywhere from 3 days to 984 days! Note that the median sales price for a Halii Kai condo in 2013 was only $550,000. Three ocean view units sold in the $700-800,000 range – and two of these were short sales, bringing their all-in price including furnishings over $800,000.

Halii Kai 2014 Outlook: Relative Value & Location, Location, Location

Turning to the current listings, there is only one condo showing contingent, that being the short sale in Building 16 with an interior stripped of appliances and a large bill for delinquent dues.

Halii Kai 13D (MLS# 260665) reduced to $1,425,000 with seller financing available

The active listings range in price from $469,000 for a 2-bedroom golf view (MLS# 266881), to $2 million for the 3-bedroom penthouse directly on the oceanfront (MLS# 259048). The average, whether calculated as mean or median price, is just over $1 million, almost double the average price sold in 2013.

The doubling in average price of current condos for sale at Halii Kai compared with the 2013 sales is reflective of a change in distribution, not that sellers are (with a few exceptions) looking to get a 100% bump in price. Within the four Halii Kai view areas – garden view in the Coconut Grove, golf-only view, golf and ocean view, and direct oceanfront – there is sometimes a wide range of pricing on similar units.

If you are in the market for a condo at Hali’i Kai this season, there are plenty of choices. What you are looking for is the relative value among the available options in your target price point and preferred view.

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