Being in the midst of high season, the Maui real estate market is abuzz in activity. And as a luxury property with an increasing reputation as one of the leading vacation rental properties on Maui, the Honua Kai micro-market is certainly benefiting from the continued demand and decreasing developer inventory. The announcement that the developer would be increasing prices sent many potential buyers off the fence, with 9 of the 14 units set to have a price increase receiving a letter-of-intent prior to the February 28th deadline. Conditions at Honua Kai are at an interesting point in the micro-market evolution and it will be interesting to see how resales will move forward after all developer units are absorbed.

With that said, let us take a look at activity in the month of February.

New Listings

Five new listings came on the market in February:

Hokulani 826 - With a price tag of $650K, this 1 bedroom / 1 bathroom mountain-facing unit quickly went under contract. At $1,048 per square foot, it proves that there are some exceptional values at Honua Kai (such as Konea 1024).

Hokulani 418 - This south-facing 1 bedroom / 1 bathroom unit in the Hokulani tower features 700 square feet and it is offered for $799K.

Konea 450 and Konea 550- As one of the premium 3 bedroom / 3 bathroom residences, these two luxury units offer sweeping views of the Pacific, over 2,200 square feet of interior living space, these units command a premium, priced at $3,589,900 and $3,699,900 respectively.

Konea 551 - In my humble opinion, on the Konea tower the '51' stack is slightly superior to its neighbor, the '50' stack due to being on the inner side of the courtyard. And such a preference can be reflected in unit 551 being priced higher than 550 ($3.999M versus $3.699M) yet already going under contract. 

Pending

The status of the following units changed from Active to Pending during the month of February - there are other units that are also pending but whose status changed prior to February. 

Hokulani 826 - Mentioned above as one of the new listings, it will be interesting to see at what price point the sale records as it will mark another step in an upwards trend.

Konea 516 - This 1 bedroom / 1 bathroom unit in the Konea tower faces its southern neighbor, Hokulani, and enjoys mountain views, albeit the ocean view corridor is limited. Priced at $695K, it went under contract February 25th.

Hokulani 518 - This southfacing 1 bedroom / 1 bathroom unit went into escrow on February 27th. Although some may be concerned on the potential/eventual build out on the parcel to the south, the absorption of this unit priced at $799K also points to increasing values.

Hokulani 718 - Same stack as its 518 neighbor last mentioned, this unit has better view corridors which are virtually set to remain constant even if the parcel next door is built up to maximum height. The views are reflected in the price of $834K.

Konea 551 - Mentioned above as a new listing, this is one of the premium units in the complex and will make its buyer the fortunate owner of one of the most spectacular condominiums on Maui.

Konea 601 - If there is a 'best of the best' of the over 600 units at Honua Kai, Konea 601 is one of them. Absolutely spectacular, unobstructed views of the Pacific, and over 1,300 square feet of outdoor entertaining space. A spectacular property, listed for $5.3M

Sold

There were three sales recorded in the month of February, as listed below:

 Konea 448 - A 1 bedroom / 1 bathroom with nice ocean views on the north outside perimeter of Konea.  With a sales price of $770K, it was a fair value to its lucky new owner.

Konea 440 - 1 bedroom + den units are becoming a rarity in the Honua Kai micro-market and the sale of Konea 440 proves to be a very strong value to its new owner, as it included two years of pre-paid HOA's. Developer sale.

Konea 306 - With 945 square feet, this 1 bedroom + den unit offers ocean and mountain. Its price tag of $794,900 was identical to Konea 440 listed above and also included 2 years of pre-paid HOA's. Developer sale.

February was a fair month in terms of absorption, yet with high season in full swing and activity/interest peaking, we foresee the bulk of high season's sales materializing in the upcoming spring months. 

Developer Inventory

The most frequent questions we receive are about developer units - as many of these are not listed online, it steers potential buyers into contacting the developer sales team for details (of course, keeping in mind that these agents have a fiduciary responsibility first and foremost to the developer). So with that in mind, we keep an updated list (updated daily) and post online once per month. For those with any questions about available developer units or who are interested in buyer representation, feel free to contact us. 

Hokulani

Konea

Conclusion

Absorption continues to stay at an even ratio between developer sales and resales: January/February 2013 saw 9 sales, 7 of which were developer. For the same period in 2014, it was the same exact number. Those who forecasted a weakened Honua Kai micro-market due to dips in the Canadian currency exchange have seen their predictions to be incorrect, which could be credited to lenders being more lenient in their lending criteria (which some may consider to have been unduly stringent in the past couple of years). Of the 9 sales in Jan/Feb 2013, 5 were cash purchases, whereas of 9 sales in the same time period this year, only 2 were cash.

It will be interesting to see how the resale market will fare as developer sales diminish due to vanishing inventory. With the developer igniting buyers off the fence via its price adjustment, it can be argued that resales, particularly those unique in scope (i.e. ground level 3 bedroom residences), will see continued demand being reflected in upwards pressure on values.

For those interested in the Honua Kai resort, whether in purchasing or selling, we would invite them to contact us for a private consultation below or call 808.385.5034 - we diligently remain informed on micro-market conditions, available inventory, property news, and the overall West Maui market.