Below is a recent market update from Susan Jackson, Director of Sales at Honua Kai Resort & Spa, PowerPlay’s project located in West Maui, Hawaii:
2013 was a great year for Honua Kai and for west Maui real estate in general. Here is my take on 2013, along with some predictions for 2014.
2013 was a good year, with increases in sales across all price bands. Honua Kai represented a significant percentage of total west Maui condo market; over 20% of all transactions on west Maui and over 2/3 of the market in some higher price bands.
Sales in the $400,000 – $1 million price range remained steady in 2013 showing only modest increases over 2012. This end of the market was the first to rebound after the recession with a huge increase between 2011 and 2012. With just a few homes left to sell in this price range, I haven’t spent much time analyzing this segment of the market, but I anticipate sales to remain steady in 2014.
2013 saw the strongest growth in the $1 million – $2 million range with a 75% increase in sales volume vs. 2012. At Honua Kai we saw the number of sales in this price range increase an astonishing 13 fold over 2012 and I anticipate continued sales growth in 2014.
At the top end of the condo market ($2million+) we saw very positive results in 2013. Sales volume increased by 70% vs. 2012 for west Maui as a whole and we grew our market share of this price band to an impressive 67%, with demand for our premium 3 bedroom residences increasing dramatically . I predict a more modest increase in 2014 but still expect to see the highest sales volume at this end of the market in many years.
Prices in 2013 continued the recovery that started in 2011, improving steadily in all price bands. Interestingly the biggest increases were seen in the $2million+ range where we saw a 13% increase in prices over 2012 for like-sized units. Coupled with the increase in overall transaction volume, we’re excited to see the return of the top end of the condo market.
2013 price gains at Honua Kai significantly exceeded the market at all price bands with an impressive 28% overall increase year on year in prices of like-sized units. Coupled with our strong volume growth of larger homes, the average sales price for a home sold at Honua Kai in 2013 was over 80% higher than in 2012!
Based on these results we recently announced that prices would be raised on 15 homes, effective February 28, 2014. I guess we gave you too much notice: 14 of the 15 homes went under contract before the new prices came into effect!
The resale market remains very quiet at Honua Kai, with just 18 homes currently listed. A typical resort resale market is around 14% of total inventory. At Honua Kai we have just 2% and the majority of these are one-bedroom homes located on the exterior perimeters of the towers. I think this is a great testament to the benefits of hone ownership at Honua Kai.
2013 was a great year for everyone in west Maui real estate and we are delighted to have outperformed the market and gained market share across all price bands, especially at the higher end of the market. Despite 14 canny new owners beating us to the punch, we have seen great gains in prices too. Based on this and the fact that we’ve already seen five 3 bedroom homes in the $2Million + range go under contract since January 1, I believe 2014 will be a very exciting year for Honua Kai and for west Maui condo sales.
To find out more about real estate opportunities at Honua Kai, visit www.ownhonuakai.com.