Surprise! Condos in Honolulu Are Still Expensive
Honolulu condo prices soar to record highs.
Condominium prices on O‘ahu are soaring to new heights, even as thousands of new units are being constructed and added to the market.
The median price for an existing condo reached a record $389,500 in April, breaking the old mark of $386,250 set in December, according to figures released Saturday by the Honolulu Board of Realtors.
April’s median of $389,500 is 5.1 percent higher than the same month a year ago, when it was $370,475.
Prices are at record highs despite new condo inventory coming on the market. Several new condo towers are currently under construction or in the works. Prices for the new condos are substantially higher than for existing inventory and can contribute to rising condo prices when resold.
Honolulu’s skyline is changing rapidly as developers cash in on the latest condo boom. In Kaka‘ako, where most of the building is happening, a few condos are preparing to open their doors soon.
The 388-unit Symphony Honolulu (next to the Neal Blaisdell Center) is moving in buyers this month. And construction is expected to be completed at The Collection (on Ala Moana Boulevard in the site of the old CompUSA) in November. All 450 high-rise and mid-rise units at The Collection are sold out.
Prices of single-family homes, meanwhile, are near historic highs. The median price for a single-family home was $720,000 in April, which matches the fourth-highest month on record and a 6.7-percent increase from a year ago.
“The market continues to march forward at a very fast pace,” says board president Kalama Kim.
The number of sales of existing houses and condos were flat in April compared to a year ago. There were 301 existing single-family homes and 460 condos that exchanged hands last month, compared with 301 and 454, respectively, in April 2015.
“While sales were generally flat year over year compared to April 2015, the market remains strong, as evidenced by the increase in the median sales and pending sales,” Kim said in a statement. “Condominiums continue to be a popular option for homebuyers.”
HIGHEST MONTHS FOR O‘AHU CONDO HOME PRICES
$389,500 – April 2015
$386,250 – December 2015
$385,000 – March 2016
$381,500 – January 2015
$380,000 – March 2015
$378,444 – February 2016
$375,000 – May 2015
SOURCE: THE HONOLULU BOARD OF REALTORS
READ MORE STORIES BY JAYMES SONG