Kauai Real Estate YTD Update, Southwest Flies To Hawaii, Resort Properties Dominate The 2018 Real Estate Market

Kauai Real Estate SOLD and NEW listings Island Wide! Add comments

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In Escrow! Two Listings of Mine- Both One Bedroom units #98 and #151 are in escrow.

Kauai Real Estate 
What properties were Just Listed, Sold and went into Escrow last week on the island?  Click here to find out: Kauai Real Estate Sales February 25 to March 3, 2019

Poipu Beach Real Estate- to find out the latest real estate news for the Fee Simple market in Poipu Beach since January 1 of this year click here: Poipu Beach Real Estate Current Market Analysis

Kiahuna Plantation Real Estate- Kiahuna Plantation unit #98 and #151 In Escrow!  Within one week I successfully negotiated the contracts for two of my listings at the Kiahuna Plantation.  For a complete update on the Kiahuna Plantation real estate market click here: Kiahuna Plantation Real Estate Update

Resort Properties Dominate 2018 Real Estate Market
Real Estate for the entire state of Hawaii in 2018 was dominated by the sales of resort properties, with nearly half of the record $5.15 billion in sales spent in that category, while local investors buying commercial properties for less than $10 million dominated the number of transactions.

The $5.15 billion spent in 2018 far outpaced the $3.08 billion investors spent on Hawaii properties in 2017.  The “Mega Resorts” pushed the prices upwards while the number of sales remained fairly flat.  The number of sales in 2018 was 290 just slightly up from 2017 when it was 284.

Buy Your Southwest Airlines Tickets Now
Oakland to HNL March 17.  Southwest Airlines received their approval to start flying to Hawaii and tickets went on sale immediately.  They offered a promotion of $49 from CA to HNL during the week and the price “jumps” to $99 on the weekend.  I tested it on their site and those deals were pretty much gone.
This is going to be a big deal for not only Hawaiian Airlines but also for Kauai Real Estate.   The airline announced that they plan to challenge Hawaiian Airlines control of the islands and that they excel at these short hops and will be able to offer travel between islands “profitably”.
For Kauai Real Estate it’s a big win. Our market it largely West Coast based where Southwest dominates and has a loyal following.  The relationship is a marriage made in real estate/airline heaven.

Southwest has previously stated that initial Hawaii service will connect four Hawaii airports (Honolulu, Kahului, Lihue and Kona) to four in California (Oakland, Sacramento, San Diego and San Jose). Specific routes have yet to be released.

Kukui’ula’s Losses Foreshadowing A Change In The Future?
Alexander & Baldwin took a $72 million loss in 2018 due to two non-cash impairments.  The first being their joint venture of the Kukui’ula development and the second due to Grace Pacific which is a paving company that was founded by the Grace Brothers in 1931 in the state of Hawaii.
Alexander & Baldwin said that Kukui’ula is performing better than it has in the last 10 years yet the financial losses are there.  Chris Benjamin, CEO of A&B said that they will eventually exit the project but that they have no timetable for that at this time.  Seems to me that this is basically a notice to the public that this is coming, but what exactly does it mean?

As for Grace Pacific: A&B is focusing on improving the operating costs of the business and no plans were stated for exiting that company.

Kauai Real Estate Year To Date
The numbers for the first two months of the year are in and they are a bit all over the place.  The prices across the board are up with few exceptions; the number of sales are slowing which is reflective of the mainland market.  There has been some affordable housing and vacant lot sales in Lihue that are driving down the island numbers but the North Shore housing is down largely due to the storms that had hit the island last year.  South Shore Median Prices are way up.

These numbers are general and might not reflect your area of interest, give me a call to discuss.<img src=”image.gif” alt="kauairealestate“/>

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