In the past week here on Oahu, we've seen two luxury sales surpass the highest sale we had last year.

Kailua is the frontrunner for the highest sale on Oahu this year with last week's $12 million sale

The highest sale on Oahu last year was an oceanfront home on Diamond Head Road for $10,950,000. On Monday, a similar one built by the same developer two doors over recorded even higher! Here's what we've seen this past week:

• May 17, 2013 - 72 S. Kalaheo Ave. in Kailua closed for $12,000,000
• May 20, 2013 - 3125 Diamond Head Road in Diamond Head closed for $11,250,000

Given that 5 out of the 6 highest sales on Oahu in 2012 recorded between October and December, 2013 is off to a great start. With 8 single family homes currently listed above the $12 million mark today, it'll be interesting to see if the prices go even higher. It's been 5 years since Oahu's last sale above $20 million. Here are 3 listings that could potentially fetch above that mark:

210 N Kalaheo Ave. in Kailua (MLS # 1212126) is listed for $24,000,000

503 Portlock Road in Hawaii Kai (MLS # 1212372) is available for $23 million

61785 Papailoa Road on the North Shore (MLS # 1303369) is listed for $22,000,000

With less than half the year under our belt, I'm optimistic about the future of luxury real estate here on Oahu for the rest of this year. Consumer confidence is coming back and the wealthy are looking to sink their money back into real estate. Take note, all the sales and listings were of oceanfront homes here on Oahu. As far as supply and demand goes, there is just so much oceanfront land in Hawaii to go around... I'll bet that the next sale to break the $10 million mark on Oahu will also be on the water. Want to bet?

With all things being equal, I typically advise my clients to purchase fee simple as opposed to leasehold property here in Hawaii. Not all leasehold purchases are that bad however. You always want to look at the terms of the lease. 

Executive Centre in Downtown Honolulu is an example of a long term lease expiring in 2053

One positive thing I read about recently in a Naitonal Association of Realtors publication was that owning leasehold property may not be that bad after all. According to the article, the Taxpayer Relief Act of 2012 offers some tax relief for owners of leasehold property. Owners were allowed to depreciate improvements on a straight line basis for 15 years through 2011. The reilef act now extends that ability through 2013 and also made it retroactive to 2012. 

What does this mean? If you're a high income earner, it could provide some depreciation to offset your income. In addition, leasehold property can potentially cash flow better than fee simple ones and they also offer a signficant discount in the purchase price. I would advise discussing your own situation with your CPA to see whether or not investing in leasehold property is right for you. In addition, every leasehold property on this island most likely has a different term to the lease, so I also advise working with a good Realtor to provide you with the terms of the lease so that you know what you are getting in to.

We had a great turnout the other evening at Pearl Ultra Lounge in Ala Moana where we had a live private screening of Hawaii Life Oahu episodes on HGTV.

Some of the clients we had on the show showed up as well as other great Hawaii Life Realtors from Oahu and the neighbor islands. With Season 1 wrapping up soon, we're excited about Season 2.

Caron Ling, Katie Minkus, Matt Beall and I with Sandra Sagisi Moser

When you think about luxury real estate on Oahu, Kahala always comes to mind for most. It's where oceanfront homes have fetched over $20 million as far back as 1990. Most tear down homes anywhere in Kahala start just over $1 million. Did you know that you can get fee simple condos for under $500,000? Well you can....

Here's a photo I shot last week. Guess what is at the other end of that rainbow?

Kahala Towers is a sleeper of a building not many people think about. Although you can't miss it (it's right next to H-1 Freeway), it is in a super convenient location - across from Kahala Mall, walking distance to several public and private schools, a swimming pool, and ocean views from the higher floors are just some of the perks.

As of today, there are 4 on the market, with one having an accepted offer. In the past 6 months, 4 have sold. Prices of the 2 bedroom sales ranged from $394,000 - $442,000 and a 3 bed unit B1201 went for $580,000. If you're looking for a great location, Kahala is hard to beat.

Where is your Pot of Gold at the end of the rainbow?

I wrote an article just after this summer about the Tropic Seas and how sales were on fire there. Well, that trend is continuing with the sales of #1205 that sold on December 11 for $1 million! Keep in mind, this unit had no parking and was 700 square feet.

The painting and spalling repair wrapping up at the Diamond Head Ambassador

The Diamond Head Ambassador that has been under the radar the past few years is getting some attention. With a recent building makeover with spalling repair and new paint, the Diamond Head Ambassador is coming back to life. There was a period of no sales and limited inventory. The last sales were:

• #414 Sold 12/16/11 for $896/sqare foot
• #402 Sold 8/12/10 for $898/square foot

Now, all of the sudden #102 at the Ambassador is in escrow. I see the Tropic Seas as a comparable product to the Diamond Head Ambassador for two reasons:

1. They are both co-ops
2. They don't come with parking

Here's where those similarities differ - the Diamond Head Ambassador has a swimming pool, whereas Tropic Seas does not. While they both have storage, the units at the Diamond Head Ambassador come with a much larger storage locker. Here are some current listings at the Ambassador that offer great value:

• #502 is available for $575,000. With higher ceilings on this floor, it is hard to replace
• #403 is available for $659,000. This one has been completely remodeled with over $200k in improvements

Considering the last sale at Tropic Seas went for over $1,400/square foot, the Ambassador is looking very attractive...

Hau'oli Makahiki Hou! Wishing you a Happy New Year and looking forward to an awesome 2013.

Here are some of the highlights of 2012:

1. We've increased our office production by 42%
2. We've increased our office listings by 300%
3. Hawaii Life Real Estate Brokers was ranked #5 for sales volume in the state for 2011 (after 3 years in business).
4. Hawaii Life Real Estate Brokers was the 3rd fastest growing company in Hawaii by Pacific Business News

With the launch of our show Hawaii Life on HGTV, we are looking forward to some exciting things in 2013!

I had the opportunity to go skiing in Beaver Creek, Colorado with my family over the Christmas holidays. It was my first time ever skiing (on two skis that is). Growing up in Hawaii, I never had the opportunity to be in the snow until I went to college in southern California. It was there that I took up snow boarding, which seemed to be a natural transition from surfing.

My wife grew up skiing and I knew she was an excellent skier from previous trips of ours. I always said that once our kids were old enough to ski, I would give it a try… So, there I was taking "baby steps" and got pretty comfortable after my first two days without falling (beginner's luck). After the third and fourth days, I had more and more fun, however also had a few falls. Needless to say, we had great conditions with fresh powder each day!

After four days of skiing, my feet needed a break. I took a day off and stumbled upon a local real estate office of Slifer Smith & Frampton in the Hyatt, where we were staying. From what I could tell, they dominated the Beaver Creek/Vail area with market share. It was there that I had a nice chat with Tisa Olsen. I was curious what the condos we were staying in at the Hyatt Village Hall were selling for. She made it real simple. She fired of price per square feet of projects all within the village. In a nutshell, it sounded like the ones at the prime real estate at the base of the mountain were around $2,000/sq. ft. Then, some nearby condos still within the village were more like $1,000/sq. ft. At that point, it dawned on me the similarities with our condo luxury condo market in Honolulu.

You can get something on the water at Diamond Head for close to around $1,000/sq. ft. Although the buildings are older than Beaver Creek, the iconic location of Diamond Head is hard to beat in my opinion. Also, within that same range in Honolulu, you can find nicer/newer condos in Kakaako for around $2,000/sq. ft. Don't get me wrong, Honolulu condos aren't necessarily a bargain compared to Beaver creek. We do have our trophy properties on the Gold Coast at Diamond Head that are remodeled and fetch those prices or more. We also have some at Hokua or Trump Tower Waikiki that approach those numbers as well. The tough part about both of those projects is they are not oceanfront like the Gold Coast at Diamond Head. They do however have shops and restaurants nearby that will definitely rival (if not beat Beaver Creek). They also do have some nice ocean views.

Whether surfing, snowboarding or skiing are your passion, Honolulu and Beaver Creek both have some great products within a budget of $1,000-$2,000/sq. ft. I look forward to seeing you on the water or the snow…