Did you know that you could buy land today in Kahala for cheaper than you could a dozen years ago? This is David Buck with Harcourts Island Real Estate and today we're gonna talk about land for sale in Kahala and why it's a discount compared to historic levels. First off, we're gonna start off with this house behind me.
4823 Kahala Ave Record Home Sale
This is 4823 Kahala Avenue This sold this past month for a record sale not only on Oahu, but in Hawaii for $65,750,000. This surpassed the previous record at $42,000,000 at the Kaiser Estate, which is Directly behind me out there in Portlock. So that's a new record sale here on Oahu, but not many people know and what didn't make the press headlines was that the behind me (when it was vacant land) sold in 2013 $22 million dollars and change that was roughly $338 dollars a square foot. So, to put that in perspective, everything that we're going look at today with the exception of one lot is going be less than that.
History of 4823 Kahala Ave.
Now, the sale of this lot. It was a 66,000 square foot lot previously owned by Genshiro Kawamoto, who is a Japanese billionaire I've talked about in the past. At the time, he was driving around in a limousine just like this one, going up to people all over the island and offering cash for their homes. He paid $12,0000,000 for this lot in 2013 and it made a lot of news here in Hawaii because what happened was he went ahead and he tore the old Hemmeter Estate down without a building permit. It was big news all over the news here. At the end of the day, can you guess what his fine was? It was $50 so, you know like I guess he had some attorney consulting him And he just went for it without getting a building permit to demo the old Hemmeter Estate And he paid a $50 fine. With that said, he paid $12,000,000.
The previous owner just prior to that bought it in May of 2005 and was a hui of some local investors that included Jerry Lynch who's a well-known local Investor and developer he paid $9,000,000 out of bankruptcy for the old Hemmeter Estate and then flipped it to Kawamoto for $12,000,000. Then, The Estates of Kahala, which is an LLC By Alexander & Baldwin that bought the entire Kawamoto portfolio, which included this lot behind me so some of the other lots we're looking at today were part of that initial portfolio, but what I want to get it as a pricing. So once again, $338 dollars a square foot for this lot behind me at a $22 million sale back in 2013. Our office at the time with my previous brokerage, we were involved in this and a number of other sales here along Kahala Avenue then.
Once again, back then the land sold for $22 million and then they built a home 11,000 square foot home and sold it for $65,750,000. Just doing the raw math. I don't think it took them $40,000,000 to build the house. So there is a generous cushion and profit there.
Why Land in Kahala Is a Smart Buy Right Now
Over the past few years, the luxury real estate market in Kahala has seen a shift. While it remains highly sought-after, some properties are being offered at prices well below their peak.
For example, oceanfront lots that once commanded astronomical prices are now available for significantly less per square foot. Meanwhile, properties located mauka-side (toward the mountains) offer even more value while still enjoying proximity to the beach.
Current Land Deals in Kahala
Here’s a look at some of the best deals available right now:
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4744 Kahala Ave
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Lot Size: 20,000 sq. ft.
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Price: $4.88M
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Price Per Sq. Ft.: $243
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Perfect for buyers looking to build a custom home in a prestigious neighborhood.
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4775 Kahala Ave
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Lot Size: 27,997 sq. ft.
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Price: $7.2M
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Price Per Sq. Ft.: $257
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Located on the sought-after Kahala Avenue, this expansive lot offers ample space for luxury development.
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4767 Kahala Ave (Oceanfront)
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Lot Size: 45,000 sq. ft.
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Price: $19.8M
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Price Per Sq. Ft.: $437
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An incredible opportunity to own a direct oceanfront estate with panoramic views of the Pacific.
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4607 Kahala Ave (Best Deal)
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Lot Size: 1.3 acres (56,628 sq. ft.)
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Price: $15M
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Price Per Sq. Ft.: $257
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A rare oceanfront lot with nearly unparalleled value in Kahala’s luxury market.
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Comparing Today’s Deals to Historic Sales
To put these deals into perspective, consider that one of Kahala’s most expensive sales was a $65.7M oceanfront estate. While current prices are nowhere near that record, you’re still securing a blue-chip investment in one of the most prestigious zip codes in Hawaii.
Additionally, unlike purchasing an older estate that may require expensive renovations, buying vacant land gives you complete control to design your perfect home.
Key Considerations When Buying Land in Kahala
Before you take the plunge, keep these factors in mind:
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Zoning and Permits:
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Confirm the zoning regulations for your lot and understand any restrictions on height, setback limits, or environmental requirements.
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Construction Costs:
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Factor in current construction and material costs. Building in a luxury neighborhood often means using high-end materials and expert contractors.
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Financing Options:
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While land loans are available, they typically require higher down payments and stricter qualifications than traditional home loans.
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Oceanfront vs. Mauka-Side:
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While oceanfront properties offer stunning views, mauka-side lots are generally more affordable and still enjoy the perks of the Kahala lifestyle.
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Is Now the Right Time to Buy Land in Kahala?
If you’ve been waiting for the right opportunity to invest in Hawaii real estate, now may be your moment. With competitive pricing and a limited number of prime lots available, buying land in Kahala offers both luxury and long-term value.
📞 Have questions or want to explore your options? Call or text me at 808-371-3509 — I’d be happy to help you navigate the market and find the perfect piece of paradise.