It's hard to believe it's been 10 years since Capitol Place was built in Downtown Honolulu.

Capitol Place in Downtown Honolulu

Capitol Place in Downtown Honolulu

2008: Quality Product Met Demand

Capitol Place was completed in 2008 and developed by the MacNaughton and Kobayashi Groups - both visionaries and brought a lot of the successes from Hokua, which they just wrapped up 2 years prior. The project was also a joint venture with the late auto dealer Jimmy Plueger who had owned the land. It was the first of its kind with a retail car dealership on the ground level and fee simple condos above. Since then, Oliver McMillan teamed up with JN Extotics to develop a similar concept - Symphony Honolulu in Kakaako (completed in 2016).

At the time of the launch, the majority of the product sold out very quickly. Unlike The Pinnacle Honolulu across the street that still has residual developer product to this day, the developers of Capitol Place hit the market pricing right just before the market turned in the global financial crisis in the fall of 2008. Here's the historical data since:

Capitol Place Condo Sales 2008-2018

Historical Pricing on Capitol Place 1, 2 and 3 Bedroom Condos

Looking Back on the Past 10 Years

The graph above shows both the median and average sales price of 1, 2 and 3 bedroom condo sales from 2008 through 2018 (YTD). What's apparently clear (like most Oahu real estate since) is 2009-2012 were definitely the years to buy in hindsight. Also, like most Oahu real estate the prices are quite a bit higher than they were at the previous peak. We're fortunate in that there's still many markets across the US where prices have not rebounded since their all time highs. 

By looking at the data above, which product do you think appreciated the best? The 1, 2 or 3 bedroom product? Here's the raw numbers and appreciation from 2008 to 2018:

  • 3 Bed Median $851,001 to $925,000 = 8.7%
  • 3 Bed Average $849,860 to $922,500 = 8.5%
  • 2 Bed Median $640,000 to $812,500 = 27%
  • 2 Bed Average $642,597 to $808,400 = 26%
  • 1 Bed Median $465,000 to $625,000 = 34%
  • 1 Bed Average $470,169 to $625,000 = 33%

So, it appears the 1 bed units appreciated the most over time. Both the 1 and 2 bed units appreciated over 3 times more than the 3 bed units! Hindsight is always 20/20, however perhaps a takeaway is to buy something that's more affordable?

Anchor Name Change

Another major change outside of the condos themselves is Phlueger Honda rebranded as Pacific Honda after some of the negative press received of the late Jimmy Phlueger. Although he did a lot of good for the community on Oahu, the constant news coverage of the Koloko Dam Breach on Kauai probably made it a good idea to move forward with less distractions from their core business.

Still a Great Buy?

There's not much competition if you want a quality product in Downtown Honolulu. Most all the new construction is taking place in Kakaako and if you want the ability to walk to work, live in a building with outstanding service, pet friendly environment and one of the nicer condo gyms in town, Capitol Place could be the right place for you. If you're thinking about buying or selling at Capitol Place, feel free to contact me for more information.