When it comes to Honolulu condominium sales, Ala Moana and Kaka‘ako remain king. That’s according to a new report that compares housing trends in neighborhoods across Oahu. HPR’s Molly Solomon explains.
The report, issued by the Honolulu Board of Realtors, found that condo sales in Ala Moana and Kaka‘ako were particularly strong last month. Compared to June of last year, sales for units rose by 42 percent. And the median sales price jumped nearly $300,000 —a 71 percent increase.
“For the condo market in general, Kaka‘ako really led the way,” said Kalama Kim, a realtor with Coldwell Banker Pacific Properties and the President of the Honolulu Board of Realtors. He explained that the continued development in Kaka‘ako hasn’t slowed buyers.
“I think that surprised people because as you get more units built to live in, usually you see a slowdown in price,” he said. “That certainly didn’t happen in June.”
Kim said despite many luxury towers being built in the area, most buyers aren’t international or out-of-state residents. “The vast majority of the buyers for the units that they’re selling are local residents, people purchasing with a local address,” said Kim. “So I think a lot of it has to do with what people believe the future of Kaka‘ako holds.”
The report also revealed that condos in Kaka‘ako spent more days on the market. Last June, the average was 18 days, on par with past years for Honolulu. This time, it was 56. But Kim said, with sale prices increasing, that’s not necessarily a bad thing. He thinks the longer wait period on the market is largely due to more choices in the area.
“You have all of these new development units that are taking reservations, selling, closing, and having people move in. And then you have the resells in that same area,” said Kim. “So unlike the other side of the island, a home in Kapolei, you have time to look at all of it before you make a choice.”
Earlier this year, a report from the University of Hawaii Economic Research Organization projected median Oahu home prices will set new records this year just shy of $400,000 for condos and close to $750,000 for single-family homes.