Quick Answer: August 2023 saw a continued slowdown in luxury resort property sales on the Kona-Kohala Coast, with 11 condominium sales and 3 home sales reported across all resort areas. Properties priced under $2 million are moving quickly, while higher-priced inventory is experiencing extended days on market, indicating a more discerning buyer pool for premium offerings.
Key Takeaways: Kona-Kohala Coast Luxury Market in August 2023
- Under $2 Million Market Remains Active: Homes and condominiums priced below $2 million are being absorbed rapidly, suggesting strong demand at this price point.
- Higher-Priced Inventory Lingers: Properties above $2 million are taking longer to sell and require strategic pricing and presentation.
- Waikoloa Beach Resort Leads Condo Sales: Six of the 11 condominium sales occurred in Waikoloa Beach Resort, with a median price of $870,000.
- Kukio Dominates Luxury Home Sales: Two of the three home sales were in Kukio, both closing at a median price of $14 million, highlighting continued demand for ultra-luxury estates.
- Mauna Kea, Hualalai, and Kohanaiki Recorded No Sales: These premier resorts reported no condominium or home transactions in August, reflecting a pause at the highest end of the market.
Over nearly two decades selling luxury homes on the Kona-Kohala Coast, I have worked with hundreds of affluent buyers and sellers. One of the most common questions I hear is: “What is really happening in the market right now?”
The answer is not guesswork. What I call the Polimino Market Insight System is built on years of experience analyzing the nuances of this unique luxury market. The following sections address the most common questions buyers and sellers asked about the August 2023 data.
Is Now a Good Time to Buy in Waikoloa Beach Resort or Mauna Lani?
Quick Answer: Buyers targeting the $1 million to $2 million range, particularly in Waikoloa Beach Resort, are operating in an active and competitive segment. Mauna Lani presents selective opportunities at higher price points.
In August 2023, Waikoloa Beach Resort recorded six condominium sales with a median price of $870,000. This reflects steady activity in the sub-$2 million segment. Well-priced properties in good condition continue to attract strong interest, particularly from buyers seeking vacation rental income and lifestyle value.
Mauna Lani Resort recorded three condominium sales with a median price of $1,350,000 and one home sale at $4,100,000. Although pricing has adjusted from prior peak periods, quality properties continue to trade. Slower overall volume can create opportunities for buyers who are prepared and strategic.
Example: A four-bedroom, four-and-a-half-bath home in Mauna Lani Point Estates closed at $4,100,000 in August, demonstrating that distinctive, well-located properties continue to command strong prices.
How Did Mauna Kea and Hualalai Perform in August 2023?
Quick Answer: August 2023 recorded no reported condominium or home sales at Mauna Kea Resort or Hualalai Resort.
A month without recorded sales in ultra-luxury communities does not necessarily signal declining value. Inventory in these resorts is limited, and transactions tend to be irregular. Sales activity often occurs in concentrated periods rather than consistently month to month.
Properties in these resorts typically trade at significant valuations when the right buyer emerges. The absence of monthly transactions reflects the bespoke nature of the market rather than a structural decline.
How Long Does It Take to Sell a Luxury Home on the Kona-Kohala Coast?
Quick Answer: Properties under $2 million are selling relatively quickly, while higher-priced luxury homes are experiencing longer marketing periods.
The August data reveals a clear split between segments. The sub-$2 million category remains active, with properties often selling shortly after listing. In contrast, homes priced above $2 million require more time, careful positioning, and strategic marketing.
Extended days on market in the luxury segment reflect a more deliberate buyer pool. Purchasers at this level conduct extensive due diligence and expect premium presentation and accurate pricing.
Example: The two Kukio home sales in August both closed at $14,000,000. Ultra-luxury transactions at this level typically involve longer sales cycles due to the limited and highly specific buyer audience.
What Is the Rental Income Potential for Mauna Kea or Hualalai Condominiums?
Quick Answer: Even during slower sales periods, rental income potential in premier resorts such as Mauna Kea and Hualalai remains strong due to sustained demand from luxury travelers.
The vacation rental market in these resorts often operates independently of short-term sales activity. Guests consistently seek high-end accommodations with premium amenities and services. Owners can generate significant income while holding property for long-term appreciation.
Example: A well-managed two-bedroom luxury condominium in Hualalai or Mauna Kea may command nightly rental rates ranging from $1,500 to $5,000 or more, depending on season and location, potentially producing substantial annual gross rental income.
The Bottom Line
August 2023 reflects two distinct market segments on the Kona-Kohala Coast. The sub-$2 million category remains active and competitive, while higher-end luxury properties require patience, precision, and tailored marketing strategies.
Buyers will find opportunities across various price points, but success depends on understanding each resort’s unique dynamics. Sellers must price accurately and present properties at the highest level to capture the attention of a selective global buyer audience.
Frequently Asked Questions
Q: Why were there no sales at Kohanaiki in August?
A: Kohanaiki is a private, ultra-exclusive community with limited inventory. Months without recorded sales are not unusual and reflect the infrequent but high-value nature of transactions.
Q: How does August’s median price for Waikoloa Beach Resort compare to last year?
A: The August 2023 median of $870,000 is above July’s $650,000 but below August 2022’s median of $999,000, indicating moderation from peak levels.
Q: What does a lower median price in Mauna Lani indicate?
A: A lower median price may reflect a shift in the type or size of properties sold rather than broad depreciation. Market mix can influence median figures.
Q: Which communities were most active in Waikoloa Beach Resort?
A: Fairway Villas and Colony Villas each recorded two sales in August, making them the most active communities within the resort.
Q: How important is pricing for luxury homes right now?
A: Accurate pricing is critical, particularly for properties above $2 million. Overpricing can significantly extend time on market in a selective luxury segment.