I have been closely monitoring the real estate market at the Honua Kai Resort in Ka’anapali, Maui – things are hot and inventory has been moving quickly. Last summer, I blogged about how the developer drastically cut prices at the resort by as much as 45%. Since they did this, they have drastically increased sales, namely one bedroom units below the $600K range.
I have been personal witness that the developer is now raising prices on a lot of their lowered price inventory. There are a number of micro-economic factors that have played into this decision to raise prices. I believe that many of the units they have been selling in the last 6 months were below market value in comparison to the rest of the Ka’anapali condo market.
Honua Kai has some very distinct advantages, namely:
- It is new. Honua Kai is the first beachfront whole ownership development on Ka’anapali Beach in 25 years. The resort is extremely well built and finished, the amenities are un-rivaled in West Maui, and buyers gernerally really like “new” real estate.
- The maintenance fees are extremely reasonable for all of the amenities that the owner receives. At $1.10/sq. ft., this amount is less than half of many of the surrounding beachfront properties, namely because of the age of the building and the fact that it will likely not require costly upgrades for quite some years to come.
- There is a real “buzz” at Honua Kai. Many of the online travel sites rank the resort as the top destination in all of Maui and I think this will improve even more as the resort gets more established, and they build the new spa and five star restaurant in the Konea Tower. I firmly believe that rental occupancy at Honua Kai is going to be the best in all of Ka’anapali and probably should get up to averaging around 80% for the entire year.
- Qualified buyers can obtain financing on a unit at Honua Kai with as low as 25% down payment, whereas for all other comparable buildings and operations are going to require 30-35% down payment.
There are about 200 or so remaining developer units for sale. It is very easy for me to help you as a buyer working within your budget (I will help you obtain financing should you require this) to help you identify what residence is going to be the right fit for you; I do not work for the developer, so my job is to promote your interests as a buyer above all else. I have many videos of units that are available for sale and if I don’t have one you require, please reach out to me and I will be happy to get one for you. Additionally, I have had success in helping buyers secure units that are noted as “unavailable” by the developer before they are released to the rest of the market.
Here is what is available in the Hokulani Tower (the elder of the two):
Here are the prices for the Konea Tower. Should you be interested in learning about the differences in the two towers, I would recommend that you consider exploring this post as a general introduction to the resort: Honua Kai Resort Overview Blog.
I think that the developer cut the prices on the lowered price inventory because this is what is moving (for the most part) in the market right now and it helps them to increase their overall cash liquidity. There are strong indications that our market is in the process of recovering and they are banking on making bigger cash margins on their higher priced inventory as prices begin to climb in the next market up cycle. I do think that they will need to cut prices on their higher priced inventory in the next year or so if they want to maintain the same level of sales activity that they have been seeing. The market is just not there yet to demand these type of prices.
Here To Help
I live a couple minutes away from Honua Kai Resort, and my fiance and I regularly enjoy the same facets of lifestyle whether it’s playing golf at the Ka’anapali or Kapalua Golf Course, snorkeling and time at the beach on Ka’anapali North Beach where I recently proposed to Megan, or dining out at Dukes or other Kaanapali restaurants. I would be happy to share my personal perspective and insight to living in this area, as I was born and raised on Maui and really love this area and sharing the Maui life.
Here is my series of blogs that I have written on Honua Kai:
- Honua Kai Resort in Kaanapali, Maui—Start here, as this blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.
- Honua Kai Resort Real Estate For Sale – Kaanapali, Maui Condos For Sale—This post focuses on the inventory actively for sale and where all the units are located.
- Honua Kai Purchase Process– an owner’s perspective of purchasing and experiencing the resort.
- 35% Price Reductions on Condos For Sale at Honua Kai Resort—Read about how the developer dramatically slashed the prices at Honua Kai and where some of the best deals are at.
- Price Reductions on Honua Kai Resort One Bedroom Units—video blog on 1-bedroom units that are Screaming Deals.
- Honua Kai Resort in Kaanapali – Best Two Bedroom Deals—video blog on 2-bedroom units that are Screaming Deals.
Jeremy Stice, R(S)