Quick answer: Luxury investment properties on Hawaiʻi Island—especially along the Kona–Kohala Coast—have shown strong appreciation, averaging about 47% over the last five years. Premier resort areas such as Mauna Lani, Waikoloa Beach, and Mauna Kea have often posted even higher gains, with some seeing roughly 10–12% appreciation in a single year.
Key takeaways: understanding luxury real estate appreciation on the Big Island
- Significant appreciation: The Kona–Kohala Coast has seen an average of 47% appreciation in luxury real estate over the past five years.
- Consistent growth: Historically, the Big Island averages about 6% year-over-year appreciation, with one major exception during the 2008–2009 downturn.
- Resort area outperformance: Luxury enclaves such as Mauna Lani Resort, Waikoloa Beach Resort, and Mauna Kea Resort frequently exceed the island’s average, sometimes reaching 10–12% annual gains.
- Data-driven decisions: Detailed, localized appreciation reports help buyers and sellers make informed decisions.
Over nearly two decades selling luxury homes on the Kona–Kohala Coast, I’ve worked with hundreds of buyers evaluating a second home or investment property. One of the most common questions I hear is: “How has my luxury investment property performed over the last five years?”
The answer isn’t magic—it’s a system. What I call the Polimino Market Insight System is the result of years of testing and refinement. Rather than simply describing the system, below are the most common questions my clients ask about luxury real estate appreciation, along with straightforward answers that explain what we do differently.
What is the five-year appreciation for my luxury investment property on the Kona–Kohala Coast?
Quick answer: The Kona–Kohala Coast has seen an overall average appreciation of about 47% for luxury investment properties over the past five years.
When clients ask about five-year performance, they want concrete data—not just general market sentiment. This 47% figure reflects an average based on transactions across prime resort communities. It highlights the long-term value of well-located luxury property on the Kona–Kohala Coast.
The Polimino Market Insight System helps us drill down into specific micro-markets. While the broader Big Island average has been around 6% year-over-year over the long term, the luxury segment on the Kona–Kohala Coast has often outperformed that benchmark, particularly in recent years.
Real example: In 2024, resort areas such as Mauna Lani, Waikoloa Beach, and Mauna Kea showed approximately 10–12% appreciation within that single year, based on our internal tracking across these locations.
Should I invest in luxury real estate on the Kona–Kohala Coast for appreciation?
Quick answer: Historical trends and recent performance suggest that Kona–Kohala luxury real estate can be a strong appreciation-focused investment, depending on the specific property and location.
This is best approached as a data-driven decision grounded in finite supply, consistent demand, and the enduring appeal of the Kona–Kohala lifestyle. That said, not all luxury properties appreciate equally. Location within a resort, condition, amenities, and rental potential can materially impact performance.
My team provides reports that break down appreciation by micro-market and resort area so you can evaluate opportunities against your goals.
Real example: If you invested $2,000,000 in a luxury condo five years ago and it appreciated by 47%, it would be valued at approximately $2,940,000 today (not including rental income, renovations, or other improvements).
How do luxury assets perform on the Kona–Kohala Coast compared to other investments?
Quick answer: Kona–Kohala luxury real estate has shown competitive appreciation and, in some periods, has outperformed many traditional investments—especially over the last five years.
Many second-home buyers also evaluate real estate as part of a broader portfolio. Five-year appreciation of 47% is roughly equivalent to about 8% annually on a simple average basis (actual year-to-year changes vary). In addition to price appreciation, owners may also benefit from rental income and personal use value.
The Polimino Market Insight System considers total return—not only sales price changes, but also rental potential and other factors that influence overall performance. While past performance doesn’t guarantee future results, the fundamentals in many Kona–Kohala luxury areas remain driven by limited inventory and sustained demand.
Real example: At a long-term average of 6% per year, a $3,000,000 property would increase by about $180,000 annually on average. In the last five years, many luxury properties have exceeded that baseline.
The bottom line: your luxury investment on the Kona–Kohala Coast
Understanding luxury appreciation trends on the Kona–Kohala Coast is essential for making sound investment decisions. Recent data points to strong five-year gains, with many premier resort communities outperforming broader island averages. Whether you’re buying, selling, or investing, precise, localized market intelligence can make a meaningful difference.
I would not be surprised to see continued strong performance in these unique, high-demand areas. We would be honored to be of service.
Frequently asked questions
Q: What is the average appreciation rate for Hawaiʻi real estate?
A: Historically, the Big Island has appreciated at an average of about 6% year-over-year over the last 35 years. Luxury properties on the Kona–Kohala Coast have often exceeded this in recent years.
Q: Which areas of the Kona–Kohala Coast show the highest appreciation?
A: Resort areas such as Mauna Lani Resort, Waikoloa Beach Resort, and Mauna Kea Resort often demonstrate strong appreciation due to limited inventory, amenities, and sustained demand.
Q: How can I get a detailed appreciation report for specific luxury properties?
A: For a detailed report by area or property type, contact dan@thehawaiiteam.com or call (808) 987-3306. Reports are provided monthly using title company statistics and other reliable sources.
Q: Is the 47% appreciation over five years typical for all luxury properties?
A: No. The 47% figure is an average; individual performance varies by location, property type, condition, and micro-market dynamics. A detailed report can provide more specific benchmarks.
Q: What factors contribute to strong appreciation on the Kona–Kohala Coast?
A: Common drivers include limited inventory, high demand from affluent buyers, the Big Island’s lifestyle appeal, and the draw of luxury resort amenities.