$1 Million Price Reduction on Honua Kai Oceanfront 3 Bedroom Condo
The price of Honua Kai Hokulani #501 was just lowered by another $500k today from $5.5M to its current list price of $5M and a total of $1 million off its original listing price of $6 million. The property just officially fell out of contract today after being in escrow for roughly 3 weeks. This is the premier offering of all 3 bedroom units at Honua Kai and I think these price reductions indicate the sellers motivation get the property sold soon at a very good value. This is not to say that this seller is in any distress whatsoever because I don’t think that is the case at all.
Hokulani #501 is an oceanfront 3 bed/3 bath with an interior square footage of 2,650 sq.ft. plus another 3,200 sq.ft. of partially covered lanai area, which offers a huge amount of additional living area that the new owner doesn’t need to pay HOA fees on considering that these are only assessed on interior square footage. There are two large master suites that have direct ocean views and a strong element of privacy at the same time.
Hokulani #501 has a huge oceanfront lanai, various areas to lounge on, an outdoor dining area, and an outdoor viking BBQ. For all listing details please visit the Honua Kai Real Estate Gallery.
Considering its size, this is really comparable to owning a beachfront home in Maui and having the ability to rent it out for substantial rental income while you are not using it. There were two one-acre vacant oceanfront lots that just sold in Ka’anapali for roughly $6M a piece, so I think this is demonstrative of the aforementioned value.
Hokulani #501 is Priced to Sell
Konea #601, which is the closest comparable and recent sale to Hokulani #501, was sold on 4.9.14 to an all cash buyer who sold their oceanfront 3 bedroom to upgrade to this unit. The property was listed at $5.3M and sold in 121 days for $5.2M. This property is a good amount smaller than Hokulani #501 as it was 2,365 sq.ft. with a 1,375 sq.ft. covered lanai. Hokulani #501 is being offered at $1,887 per sq.ft. and Konea #601 sold at almost $2,200/sq.ft.
Take Advantage Now as Prices at Honua Kai are on the Rise
Prices/sq.ft. at Honua Kai have been on the rise since 2012 for all property types: studios, one bedrooms, two bedrooms, and three bedrooms, with the exception in 2013 where two bedroom prices dropped by about $25 per sq.ft. but then rebounded nicely in 2014 by jumping about $100/sq.ft.
The developer was able to sell much of their inventory very quickly from 2011-2013 with another round of cuts in 2012. In hindsight, they could have benefited by a more gradual price reduction strategy, but real estate prices on Maui did bottom out at this point and the developer definitely needed to increase liquidity.
The resale market prices really started to take off in early 2013; this was around the time when I helped one of my clients sell their 2 bedroom unit for a $135,000 short term profit. Another more recent success story was me helping a client make roughly a $400k profit by selling their two bedroom unit at the end of last year.
All Honua Kai Real Estate For Sale
Here is a gallery of all the active and pending resale properties currently on the market: Honua Kai Real Estate Gallery. Please contact me directly for unlisted resale properties as well as my top picks for remaining developer inventory.
For All Things Honua Kai Related
As an owner at Honua Kai and director of a very successful property management company at Honua Kai, I take great pride on providing excellent market insight, service, and negotiation strategy – please let me know how I can be of service to you today.
Aloha from Ka’anapali, Maui,Jeremy Stice, REALTOR (Broker)
My Blog Series on Honua Kai Condos
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