When I wrote the 2025 real estate market report for the North Kohala gated communities of Kohala Ranch, Kohala by the Sea, and Kohala Waterfront, I decided that this year the vacant land sales in those communities deserved a separate report and commentary. (For 2024, I wrote about both residential and land sales in a single report).
Fewer North Kohala Vacant Land Sales in 2025
There were only thirteen vacant lot sales in the lower North Kohala gated communities: one each in Kohala by the Sea and Kohala Waterfront, and eleven in the largest subdivision, Kohala Ranch. This compares with a total of 22 sales in 2024, 15 in 2023, and 38 sales in the boom year of 2022.
The range of vacant lot sale prices in these communities is pretty narrow, whether a typical one-acre lot in Kohala by the Sea (this year one sold for $385,000) or a lot in Kohala Ranch which could range from under an acre to over 10 acres. Two lots sold in the little section of Kohala Ranch called Meadows II, featuring smaller lots under an acre, but with the same ocean, coast and sunset views. Those lots sold for $297,500 and $338,000. The highest raw land prices were a 10-acre lot in the Summit sold for $545,000 and a 3-acre lot in the lowest section, the Heathers, for $550,000. The four parcels that sold in the mid-level Meadows section ranged from $278,500 to $410,000.
There is still a premium to be makai (ocean side) of the highway. One lot at Kohala Waterfront sold in 2025, for $675,000. As one drives past the subdivision, one notices several homes under construction from previous years sales. Typically lots sell multiple times before someone actually builds, so this is notable in that vacant lots at Kohala Waterfront are finally becoming scarce.
Analysis of the Reasons Lot Sales Fell in North Kohala in 2025
There were two anecdotal reasons I heard from prospective buyers for choosing an imperfect home over a lot where they could build to their specifications. The first reason is that construction costs skyrocketed was competition for labor and materials following the 2022 buying spree. And in 2025, uncertainty over tariffs had contractors routinely bidding higher to include a contingency for the potential effects of tariffs on the cost of raw materials.
The majority of the North Kohala lots sold in 2025 had some work already done on a building site, or advertised ease of building – features which could mitigate the cost factor. Some lots are being sold to contractors, who continue to find it attractive to build spec homes – which brings me to the second reason I heard from buyers: impatience.
In general, lot buyers are content to build or at least start the dreaming and permitting process as they plan for their retirement or other life change. But some buyers want to begin a part-time lifestyle sooner than later, or simply do not have the capacity or stomach for undertaking a large project – and a move-in ready home or ready-to-build lot has appeal for them. Bearing this out, five of the thirteen lots that sold were offered with house plans and/or approval and permits – which could cut a couple of years off the timeline as well as reduce the upfront costs.
A Good Time to Buy a Vacant Lot in North Kohala Communities?
What is bad news for sellers is usually good news for buyers. In this case, that means that what might make a vacant lot attractive to buyers in light of higher building costs is a lower lot price.
Of the thirteen lots sold in 2025 (drumroll) – five of them sold for less than the sellers paid. And those sellers had bought over decades -the earliest owning from 2005 and the most recent purchasing in 2022.
On the other hand, the vacant parcel in Kohala Waterfront sold for 50% above what the seller had paid – reflecting in part the value of building plans already through the approval process.
There are currently three vacant lots listed in Kohala by the Sea and nineteen parcels for sale in Kohala Ranch. One of the most interesting opportunities may be the oceanfront lot with approved plans ready to build at Kohala Waterfront. Because this is oceanfront, expensive permitting is required; it has already been conducted, saving years and hundreds of thousands of dollars. And this parcel is cliff-front rather than beachfront, reducing concern about future sea level rise.
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