Aloha! Here I am at Makaha Surfside. I just wanted to show you what you get for a 1 bedroom in an oceanfront building in Makaha. It's not a bad view here, when you come off the parking structure to enter building B. Check out this view directly behind me. It's hard to beat living on the ocean.
Oceanfront Living at Makaha Surfside
This is unit B303 From a lot of the people I've been talking to, it's one of the preferred buildings. What's selling you right away are the views as it's direct oceanfront. We're in May and just got through some rain and the sun is finally out. This is the view off of the lanai here. We've got a window AC unit.
View from Makaha Surfside B303
The kitchen was recently remodeled with stainless steel appliances. There's a ceramic tile floor. The upgrades in the kitchen and bathroom include quartz countertops, new cabinets and a refinished bathtub.
Remodeled Kitchen with Stainless Steel Appliances
Remodeled Bathroom with Quartz Countertops
There's a closet off the hallway, which could be covered or used as storage. In the back of the unit is the bedroom, which has jalousie windows for ventilation and a closet.
Bedroom with Jalousie Windows
I hope that helps give you a perspective of Makaha Surfside, on the ocean here. I just wanted to show you what you get for just under a quarter million dollars. You can be on the ocean. It is a 1 bedroom, 1 bathroom. It is fee simple and you can live directly on the water. If you're interested in something like this or another product in Makaha, or all of Oahu (we serve the entire island), feel free to reach out and give us a call @ 808-371-3509. Mahalo!
Aloha, this is David Buck with Harcourts Island Real Estate and today we're going to talk about 3 reasons why this Colony Surf studio is such a great buy. The first reason is going to be product, then price and the third is obviously going to be the location. Be sure to stick around to the end for a bonus 4th reason.
1. Product
This is a great product because this unit got completely remodeled in 2023. I recently showed this to a client of mine in town. From the moment you walk in the front door, you're captivated by the attention to detail on the remodel. You've got granite countertops and backsplash, stainless steel appliances and beautiful white cabinetry.
Remodeled Kitchen w/ Granite Countertops, Stainless Steel Appliances and Gas Cooking
As you walk through the galley kitchen into the main living area, you can't help but notice the recessed lighting and the state of the art light switches on the wall to control the lighting in the room.
Main Living Area w/ Recessed Lighting
Then, when you wrap around the corner into the bathroom, you're going to see the same style and quality of upgrades that you did in the kitchen. There's also additional storage in the closet and above the closet in the bathroom. On top of that, you have a stacked Bosch washer dryer in the bathroom.
Remodeled Bathroom w/ Ample Storage and Bosch Washer/Dryer
2. Price
The 2nd reason is going to be price. The subject unit here is #508. It's now currently priced at $899,000. There's another unit for sale in the same stack, unit #1008. That's nearly $100,000 higher at $975,000. When you look at the last 2 sales in the building, #306, which is on a lower floor sold for $998,000. #1103 was on a higher floor and those stacks are direct oceanfront, so they do go for more of a premium price. It went for $1,149,000.
Colony Surf Studio Comparative Market Analysis
In a nutshell, you're looking north of $1 million on the last couple of trades in the building. This unit #508 is priced at $899,000.
3. Location
The Colony Surf is the Tallest Building on the Ocean at Diamond Head
Now, the 3rd reason is going to be the location. The Colony Surf is a direct oceanfront building on Honolulu's Gold Coast at Diamond Head. It's really hard to beat this location because you can right out the door and access the beach at Kaimana. You can also cross the street and be at Kapiolani Park. If you want to hook a left out of the property, you can go directly down the road into Waikiki. Or, if you hook a right out of the property, you can head around the corner to Diamond Head lookout.
Beach Fronting Colony Surf
Kapiolani Park Across the Street
You've got all kinds of great things in the neighborhood. You've got at the Kaimana Hotel and some great dining and restaurants nearby. In addition, you have world class Michel's restaurant here within the Colony Surf. So, the location sells itself.
Michel's Restaurant at the Colony Surf
View from Michel's Restaurant
4. Bonus Reason - Timing
Although we've talked about 3 reasons why this Colony Surf studio is a great buy, we've covered product, price and location. I'm going to give you a 4th bonus here. That 4th bonus is going to be timing. What's been happening here at the Colony Surf is we've seen a lot more sellers from overseas investors from Japan.
What was happening in the building back around 2016 or so (when the Yen was strong) Japanese Buyers were buying up the Colony Surf because there was a loophole in the tax code in Japan where these wealthy people could depreciate their investment here over the course of 7 years. Not only diid those that bought back then run their course on the depreciation, but back then the Yen was very strong.
What's happened today is the Yen is a lot weaker. I covered this in a recent video/article on the Waikiki Shore. We started to see more Japanese investors that are selling there because the Yen has been a lot weaker. In our overall marketplace on Oahu, we're seeing a lot less foreign investment from Japan and we're starting to see a lot more selling.
Timing wise, which is the 4th reason, it could be a great time to buy in an oceanfront building at Diamond Head. To learn more about the Colony Surf, Diamond Head condos or oceanfront condos here on Oahu, feel free to reach out and give me a shout at 808-371-3509. Mahalo!
Well, there's been a lot of talk recently in the real estate industry here on Oahu regarding retrofitting old high rise condominiums with fire protection for sprinklers. It all starred with the Marco Polo fire that took place in 2017.
Burn Mark on the Marco Polo after 2017 Fire
I remember the fire at Marco Polo like it was yesterday. I remember I was coaching my daughter's canoe practice at the Diamond Head side of the Ala Wai Canal. We started seeing all this smoke coming down the canal.
Canoe Practice at the Ala Wai Canal
Take a look at this picture below. Spoiler Alert: that was not the smoke from that day. Unfortunately, I did not get the smoke on camera.
Funnel Cloud on the Ala Wai Canal
This is actually a funnel cloud, but it gives you a perspective of the view and direction of looking down the canal. The first thing that went through my head when I heard the fire was at Marco Polo was "oh no, this is not good." Because, knowing what I know when I was in the fire department is that the Marco Polo has an enclosed hallway. So, it had the ability to trap the fire and let it spread down the corridors.
Station 29 was the Closest Fire Station to Marco Polo
Station 29 (McCully Fire Station) was the first one on the scene there. The fire itself did spread quite rapidly.
High Rise Condos in Hawaii Kai w/ Open Walkways on the Back
In Hawaii Kai, most of the buildings that we would inspect had open walkways on the backside (or mauka side) of the buildings. That was great for ventilation and didn't allow the fire to spread within units. Another thing I learned later is the Marco Polo itself had louvered doors. So, that was another way for the fire to spread.
Ordinance 19-4
Shortly thereafter (the Marco Polo fire), the City and County of Honolulu pushed forward to retrofit older buildings for fire protection. What they rolled out was Ordinance 19-4. You might ask yourself "what is 19-4?" Well, basically what it is a Fire Life and Safety Evaluation. This started with the Honolulu Fire Department doing an evaluation of all the high-rises over 75 feet here on Oahu.
Alphabetical List of High Rises on Oahu
If you want to see a list to the over 300 high rises on Oahu that the Honolulu Fire Department has identified, here's a link to that list. First off, I'm going to say a disclaimer that I used to be a firefighter here in Honolulu.
David at Hawaii Kai Fire Station 34 in 2007
Ii was with HFD from 1999 through 2007. There were some great experiences I had during my career. I was stationed at Hawaii Kai for the bulk of my career at Station 34.
Hawaii Kai Fire Station on Lunalilo Home Road
I was not in fire prevention and I just want to get that out of the way. I've been out of the department now since 2007, so take what I say with a grain of salt. i am also not an attorney. I am a Realtor here on Oahu. However, us Realtors here on Oahu recently went through some training to cover what Ordinance 19-4 encompasses. Since then, the Honolulu Fire Department has come up with a list of over 300 high rises on Oahu that are 75 feet of more.
With Ordnance 19-4, there are 2 options going forward:
1. Install a new fire sprinkler system by the year 2038
2. Make necessary repairs and/or upgrades to the existing fire alarm and safety of the building by the year 2030
How owners, boards need to decide on which direction they are going and also how they will fund this? Ie - through increasing reserves, increasing maintenance fees or having a special assessment? Associations hired a design professional to conduct the FLSE. They had to file a report by August of 2022. The challenge of most of these buildings coming up with the funds is they are already older buildings that are say 40-60 years old and are dealing with other capital improvements such as spalling, painting, railings, windows and plumbing.
Older Condos and Co-ops Along Diamond Head's Gold Coast
Let alone elevators as these are high rises. Based upon the FLSE results roughly 270 (80-90%) of the buildings failed the initial test. Part of the upgrades will include strobes, horns and audibles in every unit. Fire rated doors, no pikas in the pipes At this point in time, this is just an Oahu thing, not on the neighbor islands as its for counties larger than 500,000 and Honolulu is the only county with a population of that has a population of that amount.
What is Exempt from Ordinance 19-4?
Example of a Low Rise Condo Under 75' That is Exempt
Buildings under 75 feet do not apply. For instance, I am selling some properties right now that are every bit as old as those that have to retrofit. However, they are less than 75 feet. They are not going to be required to do this.
Over 300 Oahu Condo Projects Underinsured
In addition to there being over 300 buildings on Oahu that are over 75 feet on Oahu, it has come up recently in our industry that there are over 300 condo projects on Oahu that are underinsured. A lot of this started with the building collapse in Miami.
Miami Condo Collapse
Lahaina after 2023 Fire
Then, as we all know, we had the Maui fires that happened in August of last year. So, insurance premiums for condos and HOAs have gone up astronomically over the past year or two. With that said, once these buildings start implementing the FLSE requirements, going forward in theory their insurance rates should drop.
Where Do We Go from Here?
To be honest, there are going to be a lot of challenges and growing pains with high-rises on Oahu that need to comply with Ordinance 19-4. However, the silver lining is that the Marco Polo, that went through this awful tragedy back in 2017 has come out on the other side of this.
Marco Polo Now in 2024
They are now on the other side of the tunnel in the sense that they do have sprinklers there. I've been blogging about this after the fire because I predicted that sales there in the building would rebound after the fire, which they really because at one point you could not get financing on units there. We actually helped an owner sell their unit there through our auction platform because there were no buyers out there that could obtain financing. You were forced to sell to cash buyers. It was really sad and tragic for owners at the time, however here we are on the other side of that.
We're now in the year 2024 and in the year 2030, for those that opt for option #2 is going to be hitting us in 6 years. That's right around the corner. If HOA's opt for option #1, which is to retrofit for sprinklers by the year 2038, it's still 14 years out. There's a bit of a road ahead, but there is a silver lining at the end of the tunnel.
Have High Rise Questions on Oahu?
If you have questions about condos or high-rises on Oahu or if you're looking to buy or sell in a building that's going through this right now, or if you're looking to get into a building that already does have sprinklers, we can help you all across the board. Or, if condo living simply isn't for you, we help people buy and sell homes as well. We can be reached at 808-371-3509. Mahalo!
The Nihau Apartments is a sleeper of a building in Waikiki. Not many people know that it's a condominium that's been around basically since statehood. It's zoned in a resort district, so it allows for short term rentals. Behind me, you've got the Embassy Suites. Then, right here, we have the old Trump Tower Waikiki, which is now Kala'i. On the other side of the Niihau Apartments, you have Regency on Beachwalk. Once a again, this is a sleeper of a building and there aren't a lot of amenities. But, you can rent them short term, which is one of the awesome things.
Although There's No Amenities On Site, Niiahu Apts has Lahaina Shaved Ice Downstairs
It's a 10 story building with 1 and 2 bedroom units, with the 2 bedroom units on the wings. I've currently got one here under contract and I've participated in the last several sales that took place in the building.
Tour of Unit 305
Let me give you a quick tour of Niihau Apartments #305. This is a listing that we actually sold prior to coming to market. I wanted to give you a feel of this floor-plan. This is a 2 bedroom, 1 bath. The 2 bedrooms are a little more rare. They cap on the end units. This is (an '05) end unit and you have the '01s on the other side along Beachwalk.
Here we are at Niihau Apartments #305, which is a 2 bedroom, 1 bath. It's relatively original condition. The tenant just moved out. He was a great tenant and he was here for 16 years. What's nice about the end units is you have windows on the side here, unlike the interior 1 bedroom units. You have a 1 bedroom with a closet. Then, you have another 1 bedroom across the hall. You have jalousie windows for good cross ventilation. There's lots of storage.
This unit is on the 3rd floor, so it's not going to have the best views. You then have the kitchen and then the living area. This should give you a good feel of the '05 stack here at Niihau Apartments. These don't come on the market that often. We do have it under contract as I mentioned. There's been a lot of interest in the building. This is going to be my 3rd sale that we've sold off market, because there is so much interest here. To learn more about the Niiahu Apartments in Waikiki, feel free to give me a shout at 808-371-3509. Mahalo!
It's been roughly 3 months since Trump Hotel Waikiki was rebranded as Kala'i. I'm here right across the street on Saratoga Road. Today, we're going to do a little report on what's been happening since the name rebrand has taken place at Trump Tower Waikiki, which is now Kala'i.
High Inventory = Buyer's Market
First off, if you’re looking for condos for sale in the building, everything in MLS is still called Trump Tower Waikiki. There’s a lot to choose from if you’re a buyer. There’s well over 70 Active listings in the building. So, from an inventory standpoint, not a whole lot has changed. Ever since the building was completed in 2009, it’s been notorious for having one of the highest (if not the highest) percentage of available inventory for any condo project on Oahu.
High Days on Market
Since the formal rebrand in February, there have been 15 sales that have taken place, most of which were studios. A dozen, or 12 of those sales were under $1 million dollars. The highest sale was a 3 bedroom unit for $2,980,000, which originally started at $3,880,00 or $900,000 higher. The average days on market for those that sold was 131 days. Meanwhile, the cumulative days on market were 257 days. For those of you that don’t know what cumulative days on market is, it is when a property gets taken off the market and put back on again. The Honolulu Board of Realtors started keeping those stats a few years back to help Realtors with a truer picture of what is going on.
Sales Increase 2.5 Times
As I mentioned earlier, there were 15 sales since the name rebrand. During the same period prior, there were only 6 sales. So, it appears the rebrand could be playing a factor? There is however still over 70 active listings, so the inventory hasn’t necessarily been gobbled up.
Rentals Hard to Pencil Out
Even with the rebrand, I don’t believe the financials have changed. If you’e to open buying the new name of Kala’i, you have to be prepared to NOT make a lot of money on the rentals. The hotel pool or “house” still takes the bulk of the profits. With that said, if you’re in the market to buy or sell a condo at Kala’i or any other part of Waikiki for that matter, feel free to contact me for more information. Mahalo
Can you believe home sales were up 700% in Waialae-Kahala? This is David Buck with Harcourts Island Real Estate, here to report on the local market update for April of 2024.
Local Market Update for Homes
Waialae Kahala Homes
First off, we're going to start off with the single family homes and there in Waialae-Kahala we saw a 700% in home sales year over year. In April of 2023, there was only 1 sale that took place and this past month, we saw 8. So, that's a 700% increase year over year. Then, across the board for single family homes, we saw 14 of the 21 major neighborhoods (that the Honolulu Board of Realtors reports on) up. So, that's 2 out of 3 neighborhoods saw an increase in home sales.
Rainbow Seen from Makakilo Home
Makakilo saw the largest increase year over year in median sales price for a single family home. That median sales price went from $810,000 a year ago to $1,379,000. That's a 70% increase. Now, obviously not all the homes went up that much. So, some of those sales may have took place in the higher neighborhoods. But, across the board on Oahu, Makakilo saw the largest increase in median sales price.
Local Market Update for Condos
Kalihi Palama to the West of Downtown Honolulu
Now, as we jump into the condo sales, Kalihi-Palama saw the largest increase yearr over year for condo sales on Oahu. In April of 2023, there were only 5 sales that took place. This past month, there were 11 sales. So, that's 120% increase in sales in Kalihi-Palama year over year. That was the #1 neighborhood for increase in condo sales. Meanwhile, for condo sales across the board, sales were up in 11 out of the 21 major neighborhoods on Oahu. So, that's a step in the right direction because we've been seeing this downward trend in sales for condos. The previous month, we reported on a huge drop year over year. So, April was a lot more optimistic.
Pats at Punaluu on the Windward Coast
For our final category, we're going to talk about condo appreciation. The Windward Coast of Oahu saw the largest increase on Oahu year over year. That was up 252%. On the Windward Coast, the median condo price ini April of 2023 was only at $150,000 and this past month it was at $528,000. That's a whopping 252% gain. We've talked about this a few times in the past when the Windward Coast takes the cake for the highest appreciation in that there's a few condo complexes on the Windward Coast where you can see lower condo prices, of which would be Hanohano Hale, where you can still get a condo under $200,000. There's also Pats at Punaluu, which is directly next door. If you're looking for a good condo value/buy to be direct oceanfront on Oahu, I would check out Hanohano Hale or Pats at Punaluu and I covered both in a recent YouTube video I put together of the Pros and Cons of Living in Windward Oahu.
That's a recap for the local market update for April of 2024. If you have any questions about any buildings on Oahu or any neighborhoods on Oahu, each one is different in its own right. Feel free to reach out and give us a shout. Mahalo!
Here we are on the Windward side of Oahu. There's a reason why they call it the Windward side. As you can see, the tradewinds are really honking today. We're just off Makapuu, which is kind of the southern most of the Windward side and we're going to be making our way up the coast today to talk about the pros and cons of living in Windward Oahu.
Tradewind Surf off Makapuu
Waimanalo
Here we are now in Waimanalo and one of the things people do love about the Windward side are the beautiful white sandy beaches and deep blue ocean. As we continue up the Windward Coast, you'll see there's typically an outer barrier reef. So, the waves normally don't get too big closer to the shore. They normally make for calmer swimming conditions.
White Sand and Deep Blue Ocean in Waimanalo
However, you've always got to consult and make sure you're a good swimmer before jumping in the ocean here. You also will get a lot more Portuguese man o war and jellyfish that do blow inside. Another great thing about the Windward side we'll point out along the way is the nice backdrop of the Koollau Mountains.
Kailua
We've just left Waimanalo and we're now into Kailua. Kailua is a great area to live in. We've got Kailua Bluffs, Keolu Hills and Enchanted Lake behind me. There's also about another dozen neighborhoods in Kailua.
Enchanted Lake with Keolu Hills and Kailua Bluffs in the Background
One of the catches on the Windward side is the clouds roll in. We did just come from Waimanalo. I was there an hour ago. I had to stop in Waimanalo to check on a listing of mine. What happens throughout the day is the clouds tend to roll in. So, the Windward side of the island is going to be a lot more cloudier than say the Leeward side of the island and it's also going to get a lot more rain.
Mount Olomana seen from Maunawili Home
Hence, you're going to have these beautiful green mountains like the Koolaus and Mount Olomana.
Kaneohe
Here we are further up the coast. It's still kind of a windy tradewind day. We're at Heeia State Park and this gives you a great perspective of Kaneohe.
Heeia State Park
Heeia Fish Pond in Kaneohe
In the background, you've got an old fish pond and across the bay behind me you've got Lilipuna Point and you have some condos there.
All throughout Kaneohe, you've got a number of great neighborhoods. I know we kind of breezed over Kailua earlier, however I always say "the best places were taken first". So, the Windward side of Oahu does have some older construction (like Honolulu) in that people wanted to live along this beautiful coastline.
Views Along Kaneohe Coast
Kaneohe Marine Base
Kaneohe Marine Base
Windward Retail Shopping
What I will point out is you've got Kaneohe Marine Base. Then, just right up the road here you've got Windward Mall. We had breezed over the retail in which they have in Kailua Town. Kailua has a lot of great retail on property that was formerly owned by Kaneohe Ranch (now Alexander and Baldwin). Here in Kaneohe, you've got several malls, the largest of which is Windward Mall, which is a gigantic indoor mall. Kind of think of the bigger malls on the mainland. It's very convenient for those that aer living on this side of the island and/or are stations at Kaneohe Marine Base. I hope that helps and we'll continue up the coast.
Kualoa
There's a reason (once again) why they call this the Windward side of the island. I'm not sugar coating it today because the tradewinds are blowing pretty good. There are beautiful sunny days out here. We do have some blue in the skies, but if you look back towards Kaneohe Bay, you see a bunch of rain clouds there, but that's also what keeps the island so green and tropical on the Windward side.
Kualoa Beach Park
Here we are at Kualoa Beach Park and Kualoa Ranch is directly behind me here. There's a lot of really cool movies that have been filmed there.
Kualoa Ranch
It's obviously been put on the map for Jurassic Park and right around the corner here at the fishpond, they filmed 50 First Dates with Adam Sandler and Drew Barrymore. You then have Chinaman's Hat out the back here in Kualoa.
Sailing in Kaneohe
We kind of breezed over Kaneohe Bay. As you can see the wind is blowing today and one of the cool things about living on the Windward side of Oahu is it's a great place to go sailing.
Kaneohe Yacht Club
A little closer to Kailua, you have Kaneohe Yacht Club. There are also some facilities to take boats out of the Marine Base if you have that eligibility. Last, but not least there are little boat slips and places along the coast here in Kaneohe, if you have a boat and wand to launch it out the back. We're going to start to talk a little more real estate here shortly.
Oceanfront Homes Along the Windward Coast
In Waimanalo, there's one on the market right now on the ocean for $5 million. Entry level on the ocean right now in Kailua has been $8 million. However, if you're willing to drive a little further up the coast, which we're going to continue to do. As you get further up the coast, you'll continue to see prices drop. You get more "bang for your buck" (no pun intended). You can start to get something on the water from the mid $1 million to $2 million range. It's a lot more affordable because it's a lot more rural and further to drive. Stand by and we'll continue on to our next stop, which is Kaaawa.
Kaaawa
Now, we're on the beach in Kaaawa and Kaaawa is just right up the coast form the city of Kaneohe. Technically, Kaaawa is it's own city. It has it's own zip code and post office.
Kaaawa Post Office
When you get mail here, it says Kaaawa, HI. Try to say Kaaawa fast 3 times! In any event, this is the next stop along the Windward Coast. It's got it's own residential community (in MLS) and a beautiful backdrop. Most of the real estate here is going to be set just off the highway. As we start to get more up the coast here, we're doing to talk more about what the cons are of living on the Windward side.
It's beautiful in that you're living on or near the water. But the one of the cons are that there's salt air that's traveling thousands of miles across the Pacific. So, the salt air is going to have a lot more wear and tear on the improvements of your property, your vehicles, etc. That salt air will corrode things quicker as opposed to living on the Leeward side of Oahu or in Honolulu.
Old Hauula Fire Station #15
I used to be a firefighter and worked up the road here. A station that I worked at in the late 90's was already falling apart and it was built in the 1980's. Fast forward to today, they have a brand new fire station because the old fire station didn't last that long and it was built in the 1980's.
One of the cons once again of living on the Windward Coast is you're going to get a lot more wear and tear on your property. It's going to be a little more to maintain. But, the sandy beaches are hard to beat...
Traffic on Kamehameha Hwy
I decided to stop further up the street. Another con we're going to talk about right now about living on the Windward side is it is a 1 lane highway. So, if there's any type of construction or accident, the road is going to back up. So, that's something you want to be prepared for, living on the Windward Coast.
Swanzy Beach Park
They've got some construction going on right here in Kaaawa. Up the road is the Kaaawa Fire Station. Directly behind me is Swanzy Beach Park. It's a beautiful beach park. They do have basketball hoops here as well as a little playground for the kids.
Swanzy Beach Park in Kaaawa
Having been a firefighter out here, the ocean does get a little bit rough. Even though the waves are breaking way out there, there's a current through here that rips hard. There's been a lot of water rescues along this coast. I've been involved in some and then there's a tragedy that happened out here. There were some kids that got in over their heads in a kayak. Even though the water looks calm on the inside, there's an undercurrent that rips through here. So, you really want to be careful on this part of the island in particular off Kaaawa. We'll be right around the corner here in a second (after the traffic frees up) and we'll check out Kahana Bay.
Kahana Bay
Kahana Bay Looking Back at Kaaawa
Here we are now at Kahana Bay, which is right around the corner from Kaaawa. It's a beautiful state beach park. There's not a lot of real estate here. It definitely does not come for sale. There are some leased homes (from the state) back in the valley. Once we get around the corner here, we'll be at Punaluu, where we have a combination of fee simple and leasehold properties along the water.
Punaluu
Now that we're in Punaluu looking back towards Kahana Bay, there are some homes on the water in Punaluu. Those are actually leasehold properties, where the land beneath them is owned by Kamehameha Schools. They are long term land leases. However across the road, this is something you want to be aware of when you're looking at property on the Windward Coast.
Sometimes you'll see something online as "oceanfront", however it's literally got a highway between it. Over the years, I've seen it in MLS where they call these homes "oceanfront", but there's literally a highway you have to cross to get to the beach. Some of them do have beautiful ocean and beach views, so that's definitely one of the pros.
Odd Numbers = Oceanfront
One thing to keep in mind as you're driving along Kamehameha Hwy is all the odd numbers are going to be along the ocean and all the even numbers are going to be on the mountain or mauka side of the road. Keep that in mind, because if you see something that they're calling "oceanfront", it's not necessarily always oceanfront. One of the homes here has some scaffolding up and that's another reminder that homes are going to have a little more wear and tear on the Windward Coast.
Pats at Punaluu
Pats at Punaluu
There's a few things I'd like to discuss while we're here. I've got Pats at Punaluu directly behind me. Outside of the wind, you can hear the jackhammering going on. They're doing a lot of spalling work there, because that's what we talked about earlier. Living on the Windward Coast, you're going to get a lot more wear and tear. So, living on the ocean, they're having to redo all the rebar on the building and repainting it. Once they're done, it's going to be an incredible product and it's hard to beat this lifestyle.
Hanohano Hale
Between Pats at Punaluu and Hanohano Hale, they are definitely 2 of the least expensive oceanfront condo options. If you want to buy on the ocean on Oahu, outside of Makaha, these are going to be the 2 best deals going.
There's a couple more things I want to talk about while we're in Punaluu. Punaluu is an MLS neighborhood that falls within the city of Hauula. Hauula has its own city and zip code, just like Kaaawa. It's an isolated town off Kamehameha Highway. i'd love to tell you a funny story next.
There was one day I was working at the Hauula Fire Station, which is right up the road here. It's station number 15 for HFD. It was Christmas morning and we got called into a rescue call. There was a man in distress swimming out here. It was called in from his wife that was frantic on the beach here at Pats at Punaluu.
Outer Reef in the Distance Fronting Pats at Punaluu
As we talked about earlier, there is this barrier reef on the outside. So on the inside here, it's pretty well protected. Up the coast I said be very careful at Kaaawa. So, we came out of the fire station. This was Christmas morning over 20 years ago. We're blazing down the highway. I jump out of the truck in front of this building and put on my fins. The wife is in hysterics on the beach because her husband is face up straight outside. So, we start yelling and screaming. I put my mask, snorkel and fins on and start treading out towards him. He's about half way out to the surf. Then, we stop to say "hey, are you ok"? Because, when they train you, they don't want to person you're rescuing to drown you. He's like face up facing the sky the whole time and all of the sudden he stands up and looks at us and looks at us confused like why are coming out there?
I then start laughing because I had no clue. I didn't grow up on this coast. I didn't realize how shallow it was out there. Obviously, if you're not a good swimmer, be very careful. He literally stood up to his waist in the ocean. I think he had a few cocktails that day. It's a funny story I love to tell. I tell clients that story when I'm showing property out here. I found that's a good takeaway. Even though you have all this ocean between here and the reef. In theory, you could drown, but it is pretty shallow most of the way out there. Just be sure to use your good judgement at be safe.
Windward Sunrise and Sunset
Before I wrap up things at Pats at Punaluu, I just want to point out 1 more thing. The sky is already getting dark at 2:15 PM. Another pro and con of living on the Windward Coast of Oahu is you're going to get the beautiful sunrise off the coast in the morning.
Sunrise off Pats at Punaluu
Sunset Behind the Koolaus
However, it's going to get a little bit darker as the day goes on. The sun is going to set behind the Koolau Mountain range. So, it gets darker a lot quicker here on the Windward Coast. Once again the perk is waking up to the sunrise off the ocean in the morning.
Hauula
Now, we're further up the coast in Hauula. What I'm going to share with you is some local knowledge vs. local Realtor knowledge. So, we started this off by talking about the pros and cons of living on the Windward Coast of Oahu. For all the locals that live here on the island, we basically refer to the Windward side as starting in Waimanalo and it's going to run all the way up to the point in Laie and Kahuku, to what's considered the northern point of Oahu into Kuilima at Turtle Bay.
Laie Point off Naupaka St.
Once you round the point at Naupaka St. in Laie, that's kind of the tip point of the island. It can also arguably be said that once you get up to Turtle Bay or Kahuku, that would be the tipping point because the wind turns at that point and you're now in the lee.
Turtle Bay Resort on the Northern Point of Oahu
From a real estate perspective, it's a little bit different. Along that entire coastline, there's 3 major regions on the MLS on Oahu. The first off is going to be Kailua, where we started and encompasses Waimanalo. Then you have Kaneohe, which is the bulk of this coastline. When HBR (The Honolulu Board of Realtors) reports on the stats or I report on the stats every month that talks about the Windward Coast, that's basically the Kaneohe Region of MLS. Keep in mind, the Kaneohe Region has nearly 60 neighborhoods in MLS. The third is the North Shore at the tip of the island.
Oahu Regions of MLS
We just did a broad stroke on the Windward Coast. We kind of stuck along the coast today. I feel like Kailua kind of got cheated, however maybe we'll cover that on another day.
Every part of the island has their pros and cons. If you have any questions about real estate here on Oahu, feel free to reach out and give us a shout. Mahalo!
Here I am at the Waikiki Shore in Waikiki and today we're going to talk about 3 reasons why now at the Waikiki Shore.
1. Waikiki Shore is the Only Oceanfront Condominium in Waikiki
The first reason is Waikiki Shore is the only true oceanfront condominium in Waikiki. They have a shaved iced stand, beach services, At Waikiki Shore from the beach, you have a great view of Diamond Head and the Gold Coast. You're on a white sandy beach in Waikiki and you're right next door to Fort DeRussy, which is a 70 acre park managed by the U.S. Government and military. Right next door, you have arguably a billion dollar resort at the Outrigger Reef. There, you've got some great restaurants like Monkeypod and there's a Starbucks. The location itself sells everything...
Castle Resorts at Waikiki Shore
In addition to Waikiki Shore being a condo, you can rent them short term legally. It's resort zoned resort, so you can put them in a hotel pool, which is currently Castle Resorts. You can also self manage them and rent them on a daily, weekly or monthly basis. Or, you can actually live in them. One of the perks is it has really low maintenance fees because the HOA owns the commercial property within Waikiki Shore. That's reason #1.
2. Recent Lobby Renovation
Reason #2 is they just went through an extensive remodel in the lobby here.
Recent Lobby Renovation
Waikiki Shore History
As you walk outside the lobby towards the beach, one of the cool things about Waikiki Shore is the retail space owned by the HOA. There's a lot of cool shops for locals and tourists. There's surfboard rentals and you've got a 70 acre park next door at Fort DeRussy. Once again, this is the only ocean or beachfront condo in Waikiki. All the prime real estate is taken up by the hotels.
3. Legal Short Term Rental and Less International Buyer Competition from Japan
The 3rd reason why Waikiki Shore is a great buy is everyone wants to get in on the vacation rental craze with AirBnB and VRBO. Aa I mentioned earlier, you can rent these out short term. This product is not going away. They're not building anything new like this in Waikiki. So, it's a supply and demand issue.
What happened over the last 6 or 7 years is a lot of the buyers, demographically buying up Waikiki Shore were from Japan. The reason why is in Japan you could actually get a tax break for depreciation if you were to buy in a building that's older than a certain age (which Waikiki Shore is) and you can rent it out short term. So, these wealthy investors from Japan were buying up Waikiki Shore because they could depreciate it over 7 years.
We had 1 outlier sale in a "00" stack, which would be the direct ocean front. There was a 2 bedroom, 2 bathroom around 1,100 square feet that went for $5.7 Million. That's over $5,000/square foot! That's where things peaked out during COVID.
Waikiki Shore #418 Priced at $2.3 Million
Now, there's a 2 bedroom, 2 bathroom on the 4th floor. This is a great buy! They're priced at $2,300,000 now. I sold this same unit about 5-6 years ago for $2,200,000.
Waikiki Shore #418 Dining Area and Primary Suite
If you look at anything else on the island, it's gone up significantly in the last 5 years. So, I feel this unit #418, that's still available for over 3 months on market is a great buy. If you're in the market for a 2 bedroom, 2 bathroom legal vacation rental in Waikiki, with low maintenance fees, Waikiki Shore may be the place for you.
Contact a Waikiki Expert
If you have questions about Waikiki Shore or have questions about any other condo product in Waikiki, feel free to reach out and give us a shout. Mahalo!
Aloha! This is David Buck with Harcourts Island Real Estate. Today, we're going to talk about the market stats for April of 2024.
Single Family Home Stats
First off, we're going to start of with the single family homes and there we saw the same median sales price that we saw last month in March, which was $1.1 Million. That's a nice step up from April of '23, where it's actually a 10% increase. It was just under $1 million bucks at $999,995.
Meanwhile, sales were up 26% from a year ago. In April of '23, we had 208 single family home sales here on Oahu. This past month we saw 282. That's nice for Realtors and home sellers because there's a lot more velocity and volume in the market and more buyer traffic. Median days on market are actually down as well. They dropped 20.2%. A year ago, median days on market were at 24 days. This past month, they were at 17 days.
One sign of relief for homebuyers is there's a little more inventory. Inventory is up 15.5% from a year ago. A year ago, there were only 535 homes for sale and this pas month, there were 618 active listings.
Condo Stats
It was only a month ago that we were reporting on condo sales being down 22.5% (in March, compared to March of '23). Now that we're in April, it's a bit of a different story. It's actually quite positive for condo owners. Sales were actually up 2.6% from April of '23. This past month, we saw 431 sales and the previous April we were at 420 sales. That's a sign in the right direction for velocity in the condo market.
Then, as far as condos go, the median sales price was up as well. It was up 5.6%, going from half a million dollars in April of '23 to $528,000 this past month. It's a good sign for condo sellers on Oahu. It's not as good for buyers. However, median days on market have increased so it's taking condos longer to sell. It's gone from 20 days to 29 days. So, it's just a little under a month. Once again, it's a little bit skewed because we only report on what sells. When something sits on the market for 6 months or a year, those stats don't get reported.
Regarding condo inventory, it's also up. That's another positive sign for buyers. Inventory is up 37% from a year ago. A year ago, there was 1,144 condos for sale and this past month we saw 1,576.
That's the recap for April stats here on Oahu. We're well into the 1st week of May, so if you have any questions about real estate here, we'd love to help. Mahalo!
It's amazing how times have evolved over the last few years. I can't tell you how many inquiries I was getting a few years back about "Can you buy property in Hawaii with Bitcoin or Crypto Currency?" Well, here we are in 2024 and a bit has changed. No pun intended with "Bit" Coin. What's been happening with crypto currency is it's obviously a volatile asset. I've never invested in it. That's my first disclaimer here. I can't give you advise on it, because I have not invested in it. Sometimes I regret that. However, I'm a Realtor and we're going to talk about how it plays into property here in Hawaii.
Trading Crypto for Real Estate
What was happening a number of years back is we were getting a number of people that were getting quite wealthy overnight with crypto currency and they wanted to cash in that asset for real estate here. What they didn't want to do is cash it out. What they wanted to do was do a trade with the seller. Ie - 'I'll give you my Bitcoin for your property". Well, as you may be aware crypto currency has come under a lot of government scrutiny over the last several years. You've probably watched the news and seen what's happened to Sam Bankman-Fried and a lot of the corruption that has gone on with the crypto. Here's another disclaimer - I feel like I'm going to get hammered here by all the crypto enthusiasts bashing on it. I'm not necessarily bashing on it. It's just outside of my realm (of expertise).
In any event, we had these buyers approaching us Realtors here on Oahu that want to buy property. I never really got into it. I started exploring it and i've been meaning to put this blog out for awhile. I'm now just getting caught up with all my business. 2024 has picked up a bit and I've been busy selling real estate. With that said, I still wanted to crank this out because who knows what the future is going to hold with elections this year and everything.
Regarding the process of buying property here with Bitcoin or crypto currency here in Hawaii, it's not as easy as you think. The irony was there were Realtors going around town peddling this, to sign up for webinars and seminars to buy real estate with crypto currency here and I have yet to see it done.
Will Title and Escrow Company Accept Crypto?
This past year, I sat down with some colleagues at a local title office and not only is it under scrutiny from the U.S. Government, but if I were a buyer of property, I would want to have title insurance. In order to do that, you are going to run it through a title and escrow company. They won't take crypto currency. They will only take U.S. Dollars because they do report their transactions to the feds.
First Hand Experience with Crypto Volatility
Here's a first hand experience I went through a few years back with a buyer that wanted to buy a property here with crypto currency. I'm not sure if you've heard about it, but Coinbase is a place where they can store their crypto. We received an offer on a listing of mine. It was a high end luxury property. The offer we received was based upon them selling or exchanging their crypto currency. Now, my seller didn't even want to go down that road of doing a swap for crypto currency. We were going to have that buyer cash it in for U.S. Dollars in order to buy the property. However, when they made the offer, their Realtor put a contingency in there that they would not cash out their crypto currency until they got past their home inspection period.
Just knowing the volatility of crypto currency, the offer was in U.S. Dollars. However, when you receive a statement of proof of funds from a bank, whether it's cash or stocks (even stocks aren't that volatile), you can take it pretty seriously. But, when we received their proof of funds, it was all in Coinbase and I was skeptical. Thanks heavens and I did protect my seller because during the time that we countered their offer on terms and price, what had happened is the crypto crashed.
Bitcoin Crash in 2021
What happened is this buyer could no longer afford the property that I had listed. I was not representing them, but I think their Realtor was a little disheartened because they couldn't move forward in buying our property. Their purchasing power dropped significantly. We took a little bit longer to sell after that. However, curiosity was striking me and I started to track crypto and what it was doing at the time. Then, when I saw it starting to rebound, Bitcoin was around $60,000 and dropped to around $30,000 (during the crash). Then it started to come back and sure enough I called the Realtor and I said I saw crypto was starting to rebound and did your buyer want to resubmit their offer. Maybe they'll cash out now that the price of crypto is back up? Believe it or not, they got so fearful that they ended up cashing out (earlier) and buying a $2 million condo.
$5 Million Home vs. $2 Million Condo
Just imagine.. With that volatility, you could have a $5 million house or a $2 million condo. That's how volatile crypto is. Right now, unless something miraculously changes with our laws, you can't really buy property in Hawaii with crypto currency. You're going to need to cash that out and exchange it for U.S. Dollars. So, I hope you found value in this article. If you have any questions about Hawaii real estate, feel free to reach out and give us a shout. Mahalo!
