Tag: Ultra Luxury Condos
Maui Real Estate Blog
Wailea and Makena Market Report
The South Maui Resort Community of Wailea is world renowned for it’s beautiful beaches, great golfing, fine dining, shopping and more. Makena is located just to the South of Wailea Resort. It offers its own stunning beaches, golf and a quieter setting. Both areas offer exclusive real estate and some of the most expensive properties on the island. While we are well past the first of the year, we wanted to provide a market update looking at how Wailea and Makena performed during 2012. We also give some thoughts on the 2013 market outlook.
There were 25 home sales in Wailea and Makena in 2012 at a median sales price of $1,410,000. By comparison, the 2011 numbers were 29 home sales at a median price of $2,100,000. That calculates to a 14% decrease in activity and a 33% decrease in median price.
There were 114 condo sales in Wailea and Makena during 2012 with a median sales price of $757,500. There were 101 sales in Wailea and Makena during 2011 with a median sales price of $900,000. That is a 13% increase in activity and a 16% decrease in median price.
There were 5 land sales in Wailea and Makena in 2012 at a median price of $875,000. The 2011 Wailea and Makena Land sales figures were 5 sales at a median of $2,000,000.
Here are a few other numbers of note that I thought were worth sharing about the 2012 Wailea and Makena Real Estate Market:
- The high home sale for the year was $9,850,000 for an oceanfront home in Makena Place. Also of note, there was an estate along Keawakapu Beach that closed for $23,000,000. This was classified geographically as a Kihei closing, but that area is often thought of as part of Wailea. About half the sales closed along that stretch of beach are classified as Wailea sales while the other half are Kihei closes.
- There were a total of eight home sales over $2,000,000 in Wailea/Makena. There were fifteen $2,000,000 plus sales in the area during 2011.
- Four of the twenty-five home sales were in Makena. There were six Makena sales in 2011.
- The low home sales price was $775,900 for a bank owned home in Wailea Pualani.
- The high condo sale was $5,992,000 for a three bedroom/three bath unit at Wailea Beach Villas
- There were 28 condo sales over $1,500,000 in 2012. By comparison, there were 41 condo sales over $1,500,000 in 2011.
- Grand Champions was the Wailea condominium with the most sales activity. There were 16 closes in 2012.
- There were nine bank owned sales in Wailea and Makena during 2012. There were twelve bank owned sales in 2011. Wailea and Makena have not seen near the number of bank owned listings as other communities.
The Wailea and Makena Real Estate markets saw improved overall activity during 2012 overall. Much of this increased activity occurred at lower price points for this market. The sharp dip in median prices for homes and condos reflect a slow down in activity at higher price points in the market. There was a 47% decrease in homes sold over $2,000,000 and a 32% decrease in condos sold over $1,500,000. This is in line with some of the trends we saw island wide.
What will 2013 bring for the Wailea and Makena Real Estate markets? We have the advantage of almost two months of activity to get a sense of what is happening in the market. For home sales, we are seeing signs of improvement. There are already four homes sold with six more pending sales. Of note, six of the pending or sold homes are priced over $2,000,000. If we were to continue at this pace, it would bode well for ultra luxury homes in Wailea and Makena.
The Wailea and Makena condo market appears to be following a similar pace to last year. There are 38 condos that have either sold or are currently pending in the area. The ultra luxury condo market does not appear to be taking off at the same pace as the ultra luxury home market with only five condos over $1,500,000 that are either pending or sold since January 1.
Some markets around the island have a muddled 2013 outlook due to a lack of inventory. What about Wailea and Makena? The chart below shows the Wailea and Makena home inventory by price point and compares it the 2012 Wailea and Makena Home Sales by price point.
The Wailea and Makena home market still has over a year’s worth of inventory based on last year’s absorption rates. The lower price points of the market are the only places were scarcity could be an issue at this point. There is only one active listing under $1,000,000 compared to the six sales in that price range in 2012. There is only one active listing priced between $1,000,000 and $1,250,000 compared to three sales in 2012. I surmise that this is going to be a price range with very limited opportunities during 2013. Bank owned opportunities are likely to be few and far between, and we may well see some upward price pressure. As you get higher in price, the options increase. Over $2,000,000, there is a few year’s worth of inventory based on last year’s absorption rate. That being said, it looks likely that absorption rate may be increasing based on early 2013 activity.
The chart below looks at 2012 Makena and Wailea Condo sales by complex and compares them to the current active inventory of Wailea and Makena Condos.
The Makena and Wailea Condo market appears to have a similar outlook for 2013 compared to the home market. Lower priced condos like Wailea Fairway Villas and Grand Champions are showing increased scarcity. As a result, you are seeing some upward price pressure. As you move to the condo complexes with higher price points, you start to see greater depth of inventory. One thing that differentiates the condo market is that there are two new developments on the market in 2013. The Suites at Wailea is a new offering that just came on the market in January. This low density vacation rental is situated at the top of Wailea. It is a unique offering in that there is a special focus on services and amenities. All owners will be required to purchase membership in Club 72. Club 72 membership provides access to the health spa, preferred dining at Capische Restaurant, Cooking classes, valet services, limo service and a lot more. The one bedroom condos at the Suites at Wailea Start in the low $600,000s. While the offer price is relatively low for Wailea, the monthly association and Club 72 fees come in at approximately $2,000 a month. Initial market feedback has been relatively tepid. It will be interesting to see if the market wraps it’s head around this amenity heavy offering.
The other new condo development that came on the market in January is Andaz Wailea. This much anticipated beachfront resort is situated on 15 acres on Mokapu Beach. There will be a traditional luxury hotel component and 19 luxury villas on the property. Twelve of the luxury villas are included in the initial offering. The villas will range in size from just under 2,000 square feet to over 4,000 square feet. Pricing ranges from just over $5,000,000 to over $11,000,000. Andaz is still under construction with the hotel set to open during the summer of 2013. The residences are expected to be completed a little later in the year. These ultra luxury condos are not being listed on the multiple listing service, but the developer is currently taking binding reservations. Contact The Maui Real Estate Team if you are interested in learning more about the villas listed for sale at Andaz Wailea.
Andaz Video Preview
What does all of the above mean for those who are interested in buying a property in Wailea and Makena in 2013? Buyers shopping for condos under $1,000,000 or homes under $1,500,000 will find that they have limited inventory to choose from. Well priced homes and condos in this range tend to go quickly when they do come on the market. As buyers go up in price range, the inventory and increases quite a bit. Ultra Luxury condo buyers in particular have a lot to choose from between Andaz and existing offerings like Wailea Point and Wailea Beach Villas. That being said, I would be hard pressed to call it a true buyer’s market. Many of the sellers in this market have deep pockets and can afford to wait for more favorable market conditions. Sellers who are considering entering the market, will need to adjust their strategy in part based on their price point and their urgency. Sellers who are anxious to redeploy their capital will likely need to price aggressively to ensure a shorter time on market.
The Makena and Wailea Real Estate markets offer a lot of options for interested buyers. Contact The Maui Real Estate Team today for a free consultation that will help you identify potential properties that might fit your needs. You can check out the full inventory of Makena and Wailea Homes for Sale, and Makena and Wailea Condos for sale on MauiRealEstate.com.