Wanted: Kailua

(page 1 of 3)

Special promotional section

By Catherine Toth

Real estate in Kailua remains very desirable, with prices continuing to increase. Here’s what you might expect if you’re looking to buy or sell in Kailua. 

Photo by Heather Titus

The Hardings had looked at houses from Hawaii Kai to Waianae to Kaaawa.

But nothing compared to the charming yellow bungalow with a wraparound porch in the Koolaupoku neighborhood, just three blocks from Kailua Beach.

It had everything the family from Virginia wanted—a spacious kitchen, friendly neighbors, a decent commute to town—all under $850,000.

“I realize you’re paying for Kailua, you’re paying to live fairly close to the beach,” says John Harding, 38, who bought the four-bedroom home for $765,000 at the end of last year.

“And you know what, I can’t think of a more beautiful place to live. It’s Hawaii. What more can you ask for?”

While Oahu’s overall real estate market has leveled off this year, Kailua is seeing notable property value increases in many neighborhoods, especially those near the beach.

Last year the median price of a single-family home on Oahu was $643,500, compared to $804,500 in Kailua, according to data from the Honolulu Board of Realtors. The median price of condos on the island was $325,000; in Kailua it was $422,500.

And experts don’t expect that trend to change anytime soon.

The Harding family moved from Virginia and found their ideal home in Kailua. Photo by Heather Titus

“Kailua has a suburban lifestyle without the hustle and bustle of a big town,” says Jim Mazzola, president of the Kailua Chamber of Commerce and former broker-in-charge at Coldwell Banker Pacific Properties. “There’s limited supply and a very big demand.”

 

The beach lifestyle

The demand is really for the two-mile stretch of sandy beach luring everyone from professional windsurfers to daily dog-walkers. Kailua Beach is considered one of the best beaches in the world, bringing in thousands of visitors each year, adding congestion to roadways, in parking lots and through the town area.

Thanks to the growing population—right now there are about 51,000 people living in Kailua, compared to 3,000 in the 1940s—business in Kailua has boomed in the last decade, with specialty shops, boutiques and restaurants opening to cater to the growth in both residents and visitors to the area.

“People who are attracted to Kailua are looking for that beach lifestyle,” says Mazzola, who grew up in Nuuanu but moved to Kailua 30 years ago. “They want a smaller community, not a metropolitan area, and to be near the beach.”

Koolaupoku and Kuulei Tract, both blocks from Kailua Beach, saw an increase in the average price of a single-family home from 2006 to 2007 of 8.65 percent and 13.36 percent, respectively. The prices of homes in these areas range from $700,000 to $1.8 million, depending on lot size, condition of the home and—of course—proximity to the beach.

Lanikai was one of the few beachfront neighborhoods that saw a substantial increase— 9.74 percent—in single-family home prices from 2006 to 2007. The median sale price in 2007 hovered around $2.3 million.