Wanted: Kailua

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“Lanikai is Lanikai,” says Yvonne Jaramillo Ahearn, Keolu Hills resident and a realtor with Mary Worrall Associates who specializes in Kailua. “It’s always going to be desirable.”

More than the beach However, neighborhoods near the beach weren’t the ones showing the highest jump in value.


Areas such as Kailua Bluffs (a neighborhood at the bottom of the Keolu Drive loop, with newer homes, some with mountain and ocean views) and Coconut Grove (an older and more affordable neighborhood near downtown Kailua, with smaller lot sizes and clusters of apartment complexes) have seen an increase in home prices over last year. Median sales prices for homes jumped 22.5 percent to $1 million in Kailua Bluffs from 2006 to 2007; Coconut Grove saw a 6 percent increase during that same period, with the median price of a single-family home reaching $662,500.

Jordan Abe and Brandi Watanabe both grew upon the Windward side, and just bought a condo in Kailua. Photo by Heather Titus

Still, don’t let the higher-than-average home values scare you.

There’s a common misconception that the prices of homes and condos in Kailua are too high for first-time buyers. But real estate agents say that some neighborhoods, such as Coconut Grove and Kalama/Coconut Grove, still have single-family homes in the $600,000 range or condos around $300,000.

Earlier this year, Brandi Watanabe and her boyfriend, Jordan Abe, bought a two-bedroom condo at Healani Gardens off Kaneohe Bay Drive for $380,000 — $70,000 less than the maximum price they could afford.

Both born and raised on the Windward side, the couple knew they would have to pay more to live in Kailua than in other neighborhoods on Oahu. Still, they were hoping they wouldn’t have to pay so much they’d be eating instant ramen for the rest of their lives.

In January they took a look at the unit on a Friday and put in an offer the next Monday. It was accepted the next day and on Feb. 15, the deal was final.

“We knew we couldn’t afford more than $450,000; that was the very, very top of our price range,” says Watanabe, 24, director of annual giving at Chaminade University. “So we’re very happy. We felt so lucky to find this place.”

Staying home in Kailua

Watanabe is part of a growing group of Kailua residents who want to live in the neighborhood in which they were raised.

“I’m from Kailua, he’s from Kaneohe, so we wanted to find something in between,” says Watanabe, who grew up in Enchanted Lake. “We just love everything about the Windward side. The weather, the shopping, the restaurants. This is where we wanted to stay if we could afford it.”

Real estate experts have seen a surge of renovation work to existing homes in recent years, with owners building extensions to accommodate growing multigenerational families.

This is evident in older communities such as Enchanted Lake, Keolu Hills and Coconut Grove, where homes are in various stages of remodel work that, in turn, affect prices.

“We’re seeing more and more ohana dwellings added to the lot or above the carport,” says Kailua resident Scott Coffman, principal broker at Kailua Mortgage. “Here’s this little house and the owners put up something that’s three times bigger in the back. You know the whole family is going to live there.”

Photo by Heather Titus

Demand for Condos

There’s a limited supply of homes and condos in Kailua, which has increased demand and helped drive up property values over the past 20 years.

“Values here will continue to stay stable or go up because there is no land zoned for more residential development on the Windward side,” Mazzola says.

This is particularly true for condominiums, which haven’t seen a new development in almost 20 years. (The Ho-ku-lani on Aoloa Street was built in 1989.)

Realtors expect a lot of interest in The Ironwoods condo project, the first new residential development planned on the Windward side in years. Construction begins this year, with 153 units priced between $400,000 and $800,000.

Its location—in the middle of downtown Kailua—will also be a draw to people who like the idea of living within walking distance of boutiques, grocery stores and restaurants.

Real estate agents have already seen strong interest in these condos among retirees, young couples, snowbirds and investors.

“The demand is going to be high,” Mazzola says. “Just about everybody who owns a house in Kailua who wants to downsize will be looking at these.”