The Hokua Condominium has been very popular since it was built in 2006. This is one of the first new high rise condominium projects that became available during this new building phase in the economic cycle. The amenities that were offered were like nothing readily seen in condominiums in Hawaii, which includes a dog park and guest suites. Plus, the size of the units was very attractive for those looking to downsize from a single family home or for those who were interested in having it be their second home. The units are all quite a bit larger than most every other condominium available in Honolulu. Those interested in making the Hokua their second home made up most of the original sales in the building. Because of its convenient location and generous amenities, it was and is still ideal for those who wish to have a getaway place in Hawaii.
While the building was being constructed, the real estate prices across Hawaii began to rise. At the time of closing on the units in 2006, many new owners were aware the units were worth far more than what they had contracted for. There were some that were resold in the few months that followed the completion of the building at anywhere from 19% to 130% over what was paid for the unit. The average increase from the original purchase price was a whopping 71%. However, it was only approximately 11% of the units in the building that sold their newly purchased unit within the first months. That is a small amount when you compare with other newly constructed buildings in Honolulu. The fact was that there was and is still not another building like it in Honolulu. This may change with the Trump Tower Waikiki project, but comparing entry costs and maintenance fees, the Hokua can offer much more value than the Trump Tower Waikiki.
Throughout 2006 and most of 2007, the sales were generally keeping up with the units that were coming on the market. As you can see from the chart below, the new units were generally being absorbed into the market with relative ease. No matter the price range, from the low end to the multi-million dollar upper end, the Hokua was in high demand. As the market began to peak and
with the general faltering housing market on the mainland, the chart shows a waning interest in the Hokua at these price levels. Then, clearly as the economy has had increasing problems and the credit liquidity was threatened, the sales became near nonexistent.
There have been 3 sales since the beginning of the year: two in January and one in February. And currently there are 3 units under contract. So, because of the uniqueness of this building the interest in these units is still there even at current prices. Still the average days on market (DOM) is 177 days, which is rather lengthy traditionally for the Hawaii real estate market. These last three sales prices were, on average, only 8% lower than list price which represents a narrowing gap between buyers and sellers from late last year. It will be very telling to see the sales prices for the units currently under contract.
To learn more about the Hokua Condominium and to see what is currently available on the market click here. If you interested in a private viewing of any of these units at the Hokua, please contact, Malia Meenderman, 808-394-9779.