Luxury homes on Oahu priced between $1M and $3M see strong Q3 sales

Luxury homes on Oahu priced between $1M and $3M see strong Q3 sales
Oahu’s luxury home market experienced strong sales of single-family homes priced between $1 million and $3 million.

Sales of homes priced $1 million to $2 million increased nearly 50 percent from July through September, compared to the third quarter of 2012. Year-to-date, 330 homes were sold in this price range through the end of September, which was nearly double the number sold in all of 2012, the report said.

Additionally, the number of homes priced between $2 million and $3 million sold during the quarter rose 33 percent compared to the same time period last year. Year-to-date sales in this price range were about 70 percent of 2012 sales.

Even some higher price ranges performed well, according to the report, which pointed out that the $5 million-and-above range saw sales rise 10 percent above 2012 levels.

Meantime, sales of condominiums in the $800,000 to $1 million range were 78 percent higher in the third quarter than during the same time period last year, and have already exceeded the number of sales in 2012 by 12 percent.

The number of condos sold for more than $1 million was 62 percent higher when comparing year-over-year totals, surpassing overall 2012 sales by 4 percent.

In terms of foreign real estate investment on Oahu so far this year, Japan remained in the top spot for both the $1 million to $2 million segment, and the $2 million-and-above price range with triple the number of homes sold as well as triple the dollar value of sales of other countries on the top four list combined, the report said.

Brazil made the list for the first time in the $1 million to $2 million category. In the $2 million-and-above segment, Hong Kong came in second with two homes sold and China joined the list for the first time since 2010.

“The second-home market on Oahu has returned, as evidenced by increased sales activity, particularly among single-family homes priced between $2 million and $3 million as well as the many new luxury condo units that are sold out,” Kahala Associates Broker-Owner Myra Brandt said in a statement. “We have seen stable demand and a declining inventory for single-family homes and condos, resulting in stiff competition and sometimes multiple offers. This puts pressure on home values, and it has been forecast that the median single-family home price is heading toward the $1 million range.”

But not all luxury market price ranges fared well in the third quarter, the number of sales in the $3 million to $5 million range declined by 10 percent, when comparing year-over-year numbers.

 

Luxury_Oahu_Estates_$2M -_$3M

Luxury_Oahu_Estates_$3M -_$4M

Luxury_Oahu_Estates_$4M -_$5M

Luxury_Oahu_Estates_$5M -_$6M

Luxury_Oahu_Estates_$6M -_$8M

Luxury_Oahu_Estates_$8M – 10M

Luxury_Oahu_Honolulu_Condos

Source: Kobayashi Group, MacNaughton Group to develop luxury condos in Kakaako

Sep 18, 2013, 2:50pm HST  |  Source: Kobayashi Group, MacNaughton Group to develop luxury condos in Kakaako

Duane Shimogawa  |  Reporter- Pacific Business News

MK Development — a joint venture of well-known Hawaii developers the Kobayashi Group and The MacNaughton Group — is purchasing six acres in Kakaako from Kamehameha Schools for an undisclosed price with plans to develop two luxury mixed-use residential projects totaling about 500 units along the mauka side of Ala Moana Boulevard, a source close to the situation tells Pacific Business News.

An Office Max store and the Cutter Mazda dealership are seen on Ala Moana Boulevard in Honolulu. The two blocks, owned by Kamehameha Schools, are to be developed by a joint venture of the Kobayashi Group and The MacNaughton Group into luxury condominium towers, a source tells Pacific Business News.

An Office Max store and the Cutter Mazda dealership are seen on Ala Moana Boulevard in Honolulu. The two blocks, owned by Kamehameha Schools, are to be developed by a joint venture of the Kobayashi Group and The MacNaughton Group into luxury condominium towers, a source tells Pacific Business News.

The projects are located on “Block H” and “Block I” within the Kamehameha Schools “Our Kakaako” master plan that proposes seven residential towers with 2,750 units and 300,000 square feet of commercial space on 29 acres on nine city blocks. The two parcels are bounded by Ala Moana to the south, Auahi Street to the north and Cooke Street to the west and stretches nearly to Ward Avenue to the east.

An official announcement about these projects, whose units will likely have sweeping views of the Pacific Ocean, is expected soon.

Currently, a Cutter Mazda automobile dealership and service center as well as an Office Max are on located the two parcels, which are separated in the center by Koula Street.

The Hawaii Community Development Authority, which oversees the redevelopment of Kakaako, still needs to approve these projects, which expect to start the sales process in the fall of 2015.

Prices for the units have not been set, but the condominium towers are expected to have commercial tenants such as shops and restaurants on the ground floors, similar to the Hokua condominium, another one of MK Development’s projects, which has Tango Contemporary Cafe and Panya Bistro & Bakery.

MK Development is close to selecting an architect and design partners for the projects, which are expected to attract both the international and Hawaii markets, the source said.

The Honolulu-based development team, which was formed in 2001, is no stranger to developing luxury mixed-use condo projects. Besides Hokua, it has also developed Capitol Place in Downtown Honolulu and is in the process of building One Ala Moana atop Nordstrom’s parking garage at Ala Moana Center.

Representatives from MK Development could not immediately be reached for comment.

Kamehameha Schools, through a spokeswoman, previously told PBN in an email that it did not have any more information on the towers planned for the mauka land along Ala Moana Boulevard, other than that those blocks have been designated within its master plan for future luxury housing.

“They will complement other fee simple and rental projects in ‘Our Kakaako,’” she said.

These newest condo plans are among at least 15 condo projects that include the more than 4,000 units planned for the so called “Third City” of Kakaako, which includes for-sale and rental options.

Company Disclaimer: Information is deemed reliable but not guaranteed.