Kauai Real Estate Update- For a complete list of what Sold, was Just Listed and what went Under Contract last week on the island of Kauai click here; Kauai Real Estate Update February 3 to 9, 2025
Poipu Beach Real Estate Update- Just Listed | Largest Lot In Koloa 2.3 Acres $1,990,000
This exceptional 2.3-acre parcel offers unparalleled potential on Kauai's iconic south shore. Located just minutes from Poipu Beach, world-class shopping, dining, and outdoor activities, this property presents a unique opportunity for horse enthusiasts, developers, or those ready to create their dream home. With over $250,000 in improvements done by the Sellers, the groundwork has been laid for you to bring your vision to life. For more information click here; Kapau Road
For all of the fee simple real estate activity in Poipu Beach since the first of the year click here; Poipu Beach Fee Simple Current Market Analysis
For the Kiahuna Plantation click here; Kiahuna Plantation Current Market Analysis
Cow Graveyard Lawsuit And Luxury Homes
Princeville, known for luxury homes and condominiums, was once the site of a massive cattle farm. Between the years of 1890 and 1917 the farmers struggled with an anthrax outbreak that killed more than 500 of their cattle. Those cattle were buried on what is now the Princeville Golf Course. There have been no new cases of anthrax in Hawaii since 1919.
Now, Starwood Capital Group who also owns Princeville’s 1 Hotel Hanalei Bay, wants to develop the site of the cattle graveyard into multi million dollar homes and condominiums. However, two residents are concerned about possible anthrax spores being released during construction and they have filed a lawsuit to stop the development from moving forward in 2026.
How can this golf course turn into a development? There are 27 holes total on two golf courses are totaling around 290 acres and is an “open space” per a 1972 document drawn up by the Eagle County Development Corporation who, in 1980, conveyed the development rights to the Princeville Corporation who sold it to Starwood. That document guarantees that the golf course will remain “open space” until February 2026 at which time the open space agreement expires. Starwood has said they would separate out the Makai Club and rededicate that land as a golf course for another 50 years.
Buying a Kauai Vacation Rental? Here’s Why It’s Not About The Income
If you are thinking about buying a Kauai vacation rental the focus should not be rental income. I’ve yet to see a buyer work a spreadsheet on a Kauai vacation rental into anything other than a break even or possible low single digit return.
While vacation rentals on Kauai can generate some income, operating costs like maintenance, management fees, property taxes, and insurance often outweigh the profits. For most buyers, rental income helps offset costs but doesn’t make the property a highly lucrative investment.
The real value of owning a Kauai vacation rental lies in the lifestyle it offers. It’s about creating unforgettable experiences and making Kauai a bigger part of your life. Buyers see this as an investment in happiness and quality of life rather than chasing short-term profits.
Bill To Legalize Gambling In Hawaii
“Bringing the Ninth Island home”, that is what Senate Bill 893 is looking to do. If legalizing gambling sounds like a familiar headline you’d be right, however this time there’s a twist that’s giving this Bill some traction.
This bill will have casinos at the “New Aloha Stadium Entertainment District” aka “NASED”. The casinos will be taxed 15% of the gross receipts, will operate under a 20-year license. There will be a five-member gaming control commission, 15% of the state gaming fund will go to the Department of Education and there will be money available for casino security, commission admin costs and will fund compulsive gambling programs.
Hawaii and Utah are the only states that do not have legalized gambling, not sure about Utah but I can tell you illegal gambling is alive and well over here. This is an attempt to bring it out of the shadows, make it legal and…profitable for the state.
If the Bill is approved by the Senate, which logically seems like that will happen, it has to pass the Education Way and Means committees before it goes to the House.
To read about this Bill in its entirety click here; Senate Bill 893
Oahu, Maui and Big Island Year-To-Date Real Estate 2025 vs 2024
Buyer activity for November and December of 2024 will show up in the January numbers. We see the number of homes is up for all islands (Kauai is off by one) and the number of condominiums sold are up with the exception of Maui and that is understandable. The Lahaina fire added to the rising insurance costs and Maui is pulling back some exemptions for single family condominiums to lose their ability to vacation rent.
Buyers took advantage on the other islands of the real estate slow down caused by the November election and the holidays that followed.
The graph below is from the Hawaii Association of Realtors.
