Aloha! I can't believe it's been 5 years now since Ae'o was released in late 2018 and early 2019 when owners were handed over the keys. Behind me is Ae'o and Whole Foods. It's the flagship Whole Foods store in Honolulu. It's 60,000 sq. ft. interior. It was 5 years ago that owners got their keys to their units at Ae'o and what I'd like to do is a quick report on what has happened to prices over the past 5 years.
Ae'o Pricing Over the Past 5 Years
I broke out every single category - for studios, 1, 2 and 3 bedrooms for sales on average for each year. There, you'll be able to see what's been taking place with prices. Where do you think prices have gone? Have they gone up? Have they gone down?
Well, for instance on the studios, the average sales price was $625,000 at the end of 2019 and fast forward to this past year (2023) and now it's at $605,000. So, actually over the course of the past 5 years, prices have gone down on the studios. On 1 bedrooms, they've gone from $910,800 on average to $847,000 (also down).
Now, the 2 bedrooms are a completely different story. They 2 bedrooms are actually the one category that have gone up in value here at Ae'o over the last 5 years. The average price in 2019 was $1,280,000. Now, it's at $1,321,143 at the end of 2023. The 3 bedrooms have also gone down. They spiked up a little bit in 2021. However, in 2019 it was at $1,975,000 for the average sales price of a 3 bedroom unit at Ae'o and now they're down to $1,963,500. So, it's down around $12,000 over the course of 5 years.
Options Going Forward
There's several ways to look at this. One of which is (I'm always an optimist) you can buy in Ae'o today and have this Whole Foods right behind me. You can come right down the elevator and you can go to Whole Foods and you can buy today for cheaper than you could 5 years ago from the developer.
That's a great thing to keep in mind. Because, I'm going to do a segment later (in the future) of when to time the market on these new construction condos and it's honestly hit and miss. There's been some big home runs and there's been some where people did not come out ahead. Some buildings for instance - Waiea around the corner here, there's still some owners that are not able to sell their units for what they paid originally back in 2016.
Benefits of Owning Newer Construction
It's always a gamble when investing in new construction. But, one good thing about owning in a place like Ae'o with a 2018-2019 build is that is not suffering through the major issues of the older condos in town. With those, first off, cast iron plumbing is going bad with a lot of those built in the 60's and 70's. The 2nd of which is insurance on some of these older buildings because most of these newer buildings (like Ae'o) were not under insured like the some of the older buildings. Last, but not least, is these newer buildings have fire protection. They have the latest bells and whistles and they're obviously sprinklered. So, if life and safety is a concern of yours (as it is most people) it's not a bad product to consider getting into. Ae'o's got some incredible amenities as well. So, if you're in the market, I'll report on what's available here at Ae'o.
Ae'o Inventory Today
Regarding the current inventory at Ae'o in Kakaako, there are 13 listings for sale today. Starting with a studio for $610,000 and that's right around where things have been selling for over the past 5 years. From there, prices run up to a 3 bedroom listed north of $2 million. However, there's one there on the 13th floor. #1301 is available for $1,780,000. That's a pretty good deal, considering the average sales price near $1.9 in general for those 3 bedrooms.
There are some opportunities. There are 13 units for sale in the building. However, in the big scheme of things, there's 466 units. So, that's just a fraction of the available inventory. Even through there's 13 listings, there's not really a lot for sale (considering how many could be available). If you want to get an Ae'o condo, there's existing inventory.
Buying or Selling Ae'o or Another Kakaako Building?
If you're interested in any other buildings in Kakaako or you own a unit at Ae'o or another building in Kakaako and need some help selling it for top dollar, feel free to reach out and give us a shout. Mahalo!