Maui Oceanfront Market Update: January 2020February 28, 2020, 11:17 AM HST · Updated February 28, 11:17 AM Courtney M. Brown R(S) · 0 Comments
Maui Oceanfront Homes, Market Update: January 2020
By Courtney Brown, Sotheby’s International Realty
Maui has several areas with oceanfront homes: West Maui, South Maui, North Shore, East Maui and Central Maui. As you will see below, the home prices and activity tend to be highest in the resort areas of West and South Maui, and along the North Shore.
There are broad fluctuations in price depending on whether the property is beachfront or oceanfront; whether it is on a rocky shoreline or cliffside without water access; and the age, condition and size of the home.
Over the past five years, oceanfront home sales have consistently seen a volume of around 20 per year, with a low of 13 sales in 2015, and a high of 25 sales in 2017.
Comparing 2019 with 2018, it’s noteworthy that the number of sales is down 30% and the sales volume down 57%.
Please note the 2019 statistics no longer include six sales in the Mākena Resort by Discovery Land Co. that were reclassified in our MLS from Beachfront to Across the Street from the Ocean on Dec. 13, 2019. This removed $60,162,136 million from the oceanfront home sales statistics that were previously posted in the blog post on Nov. 30, 2019. That inventory had increased the average Days on Markets stat as escrow could only close when construction was complete. In addition, the average Sales Price and SP/Sq. Ft. dropped.
It is also worth noting that oceanfront homes are selling at a lower percentage of the asking price than the prior year as well as with a longer average days on market. This can mean great opportunities for buyers of oceanfront properties as the inventory has built considerably, with approximately three years worth of inventory.
We are already starting to see more pending escrows with eight homes pending now versus four in November 2019. It is interesting to note that all but one of the pending sales is under $5,000,000, with a high sale pending at $10,880,000.
There is often a misperception that we see more sales in the Wailea/Mākena Market. What is important to note is that there are far fewer oceanfront homes in resort areas in West Maui than in Wailea/Mākena.
For example, there are only six oceanfront homesites in Kāʻanapali’s only oceanfront residential neighborhood, Kai Ala Place. Similarly, there are just five oceanfront homesites in Kapalua Place, Kapalua’s only oceanfront residential neighborhood.
Wailea/Māakena are larger-scale resorts, with more oceanfront residential communities such as Keawekapu Beach, Maluhia, Mākena Place, the Mākena Beach Cottages and Black Sands, as well as homes scattered along the Mākena Coastline that aren’t part of a formal subdivision. Kīhei’s Halama Street is also a popular area with beachfront homes stretching along the shoreline.
The highest-priced listing on the island is located in the Kapalua Resort: 9 Bay Drive is an 8B/8.5-acre estate situated on 9.97 acres. It is currently offered at $37,500,000, reduced from $49,000,000. The highest asking price in South Maui is $27,498,000.
These compare with a high sales price of $27,000,000 for an oceanfront estate in 2011 in Mākena. 7150 Mākena Road is a 4B/5.5B home on 1.69 acres. To date, the largest sale on Maui for a private residence that was actually across the street from the ocean, in Keauhou, Mākena $41,750,000 in 2015 (not in MLS).
It should be noted–with such a small sampling, the statistics can vary widely at any given time, and the above are MLS statistics. Additional properties have changed hands privately and are not entered in MLS.
The original article was posted by Courtney Brown on Monday, Jan. 27, 2020.