Today's question comes from a client interested in Wailea real estate.

Question: On this last visit, we noticed a lot more construction in Wailea than in years past, can you give us a breakdown of what is going and where? Will there be new options for us?

Answer: You are absolutely correct. The past year has brought on a significant amount of new construction. As this is well within our sphere of expertise, we are well acquainted with the status of new projects and would be happy to answer any questions from interested parties. Below is a brief breakdown of the most significant projects that will redefine available inventory within their respective niches and a map is below with highlights.

Keala O Wailea - Interest in this property has been

According to Tripadvisors 2015 Traveler's Choice award, Maui is the best island in the United States and second best in the world. With average temperature of 75 degrees, an array of the best beaches in the world, luxury Maui real estate, and arguably the most beautiful tropical settings in the world, it is easy to why Maui is truly No Ka Oi!

Although many think of Maui as a beach paradise, it offers a plethora of micro-environments reflecting the rich diversity and cultural heritage inherent of Maui and its people. For example, Makawao boasts a rich paniolo (cowboy) tradition and the Maui Cattle Company has quietly grown into one of the best producers anywhere in North America. In addition, Haiku offers so many micro-climates within its boundaries

On April 14th, two significant sales recorded worthy of note for anyone following the Maui luxury real estate market. The first is a beachfront home on Maui's famed Keawakapu Beach. The 2 bedroom / 2 bathroom cottage at 3214 South Kihei Road is in fair condition, but the $7.7M sales price is reflective of the location on one of the most sought-after locations in Hawaii. The last sale in this neighborhood was a month ago for $14.5M at 3070 South Kihei Road and was based on the larger square footage.

The other sale that recorded today that raised some eyebrows is the sale of Wailea Beach Villas G-302. Sales at the Wailea Beach Villas have been stagnant, with only 3 sales recording in the past 15 months - and with 8 units currently on the market, one

It's that time again - with all sales of March having recorded and been reported, we can publish our March 2015 Honua Kai condo sales update.

New Listings

Although 6 new listings are reported, one of those was for statistical purposes as it was sold prior to being listed. Here are the 5 new listings:

Konea 614 - Located on the outside perimeter of the Konea tower, the views are restricted to ocean views due to the tower's orientation and the '12' stack protruding. Listed for $739K, it is a viable option for those seeking a 1 bedroom but for whom the ocean view premium is not feasible.

Konea 224  - Although the '24' on the Konea tower CAN have ocean views on the higher levels, on the 2nd floor this unit's view corridors are restricted to

With high season in full swing, sales activity across the island has been strong. In an effort to post updated micro-analysis data to our clients, below is our February 2015 Honua Kai condo market update.

New Listings

A total of NINE new listings came on the market in February:

Hokulani 332 - A 1 bedroom, mountain-view condo with a list price of $725K. With a smaller floor plan (620 square feet), it will be interesting to see its absorption.

Hokulani 140 - A ground-level unit on the northern outside perimeter of the Hokulani tower, it faces the Konea tower and although it does not have ocean views due to the elevation, it does offer a very serene tropical surrounding.

Konea 345 - A 2 bedroom inner courtyard unit with ocean views and a large

To kick off our 'Ask a Question' feature, below is a question asked by a client who is interested in building a Maui luxury home to use as a short term rental property.

Question:  I would like to purchase a vacant lot in Maui Meadows and build a home for vacation rentals. Is that allowed? And if so, when I sell the house, is the permit transferable to the new owner? Is there a value added for having the permit?

Answer: Great question(s). First, to give some background, The Short-Term Rental Home Ordinance 3941 became effective in May 2012, which in essence allows for single-family homes to apply to legally operate as vacation rentals. The ordinance effectively allocated a number of permits per district, which are as follows:

Typically our posts regarding the Honua Kai micro-market are much more in-depth, but the following information may be useful to some visitors and/or our clients, so we are posting it. 

We had a recent question from a Honua Kai prospective buyer, in which he wants to know whether there are discernible patterns occurring in the micro-market, and further broken down in niches - particular emphasis on 1 bedroom ocean view units and 2 bedroom ocean view units.

1 Honua Kai Bedroom Units

Take a look at the chart below, detailing the price per square foot of every ocean-view one bedroom unit sold - purposefully excluded the 1 bedroom + den to keep data most relevant. We added a polynomial trendline for context.

2 Bedroom Units

Take a look at

In the past years, we have received continuous interest in Kihei Villages condos for sale - after some preliminary questions, the biggest question is whether to opt for a ground level or a 2nd floor unit. There are tangible differences, both in terms of lifestyle value proposition and fair market value. 

In the interest of providing information to our clients and site visitors, below please find charts detailing the price per square foot of every sale at Kihei Villages in the past 24 months, broken down by floor level. 

As noted above, there is an absolute price difference in first floor versus second floor (approx. 7.5% historically over the trailing 24 months). As a caveat to potential buyers, under the current absorption of 3.83 units sold

**UPDATE: THIS UNIT HAS ALREADY SOLD SINCE PUBLISHING OF THIS POST. CONTACT US TO DISCUSS CURRENT INVENTORY**

For the most part, the Wailea condo market escaped the onslaught of bank-owned properties (REO's, 'foreclosures') that have marred the Kihei real estate market. Since 2009, Wailea has seen 30 REO condominiums sold (4.8% of total sales), compared to 290 in its northern neighbor of Kihei, which saw 290 REO condos absorbed (11.75% of total sales). In 2014, there was only REO condo for sale in Wailea - a 2 bedroom unit at the Grand Champions. 

As such, when a new listing of particular interest hit the market, it is worth strong consideration - and the listing of Kai Malu 13A certainly falls in this category. The gated community of Kai Malu has

Picture above is of Villas B & C 

The introduction of Andaz Maui brought much excitement in the Wailea real estate market when it was announced that a number of Fee-Simple ownership opportunities would be offered - at the time there was much speculation as to the number, but 12 units were announced. These luxury villas are newly built, incorporate modern touches, offer five-star resort amenities while maximizing the splendor of the natural surrounding, with one of the best beaches in the world as its backyard.

The symbiotic relationship between the hotel component of the property and the privately-owned villas offers a very unique value proposition. Such a unique value coupled with lower absorption in the higher-end niche of the Maui condo