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According to today's Maui News, the average valuation of property across Maui increased almost eleven percent in the past year. In total, all Maui property was valued at over $40 billion. What does that mean? Perhaps this:
3442 Malina, a 4000 square foot, Wailea-style home on 8/10 of an acre with a lovely park-like lot and excellent ocean views sold for $1.68 million. It had been listed for $2.15 million and on the market for an extended period. That is a per square foot price of $420 per square foot. Not a great number for a home of this quality.
Now this might seem like an odd question to ask, but an article in today's Wall Street Journal does a fairly good job of raising the issues involved. Here are some key thoughts:
The renovation of the Ritz-Carlton in Kapalua has been approved by the Maui Planning Commission. The scuttlebutt is that Honua'Ula (formerly Wailea 670) is likely to be approved this year. We are still awaiting word on the Wailea Beach Resort on the site of the Renaissance Hotel which is scheduled to close August 31. . MF9 and 11 in Wailea, a total of 21 half-acre homesites will begin work in May. The Gateway Center at the corner of Wailea Ike and the Piilani Highway should begin construction this summer. Kila O Wailea, 75 condominiums on 12 acres across from Wailea Ekahi has received their SMA approval. Ho'olei has approximately a dozen units left for sale, Maluaka in Makena will be free to conduct sales near the end of this month.
Tom and Sean are pleased to announce that Palms at Wailea unit 2108, listed for $799,000 has gone into escrow after several months on the market.
There is more and more talk on Maui now of "fractional ownership." It is just what it sounds like, six or fewer parties (so as not to create a timeshare) own a given property as Tenants in Common. Each party has their own deed for their fractional share and their own mortgage against that fractional share. This approach has several benefits, it qualifies for 1031 purposes, lower purchase price for a piece of a high quality property and appraisers are using 140% of a traditional sale as the value for a given property if sold in this manner. The Ritz Carlton project in Kapalua is adopting this approach and certain lenders will make these mortgage loans. But there is a lot left unresolved in this form of ownership like liability, taxation as well as zoning restrictions and the actual timing of the fractionalized ownership for a given property.
There is a bit of a debate over which of two new residential condominium projects is superior. Both have large floorplans, don't allow vacation rentals, have gated entries and garages garages and are brand new. It is appropriate they get compared. Strangely enough, Tom owns in Kai Malu and Sean owns in Kanani. Here is some fodder for the debate with our completely subjective viewpoints. Kai Malu is 150 units set up as residential duplexes on 25 acres (6 units/acre). Kanani Wailea is 38 detached units on over 8 acres ( 4.5/acre). Advantage-Kanani. Kanani Wailea borders the Piilani Highway with the noise that brings, Kai Malu is isolated from any possible road noise. Big Advantage-Kai Malu .. Kai Malu units share a common wall, Kanani units are detached. Advantage-Kanani. Kanani will have a smaller pool and recreation area as one would expect of a smaller development. Kai Malu's pool area is stunning with extraordinary views. Big Advantage-Kai Malu. Kai Malu units are approximately 1800 square feet of interior living space. Kanani Wailea units are at minimum 2100 sqaure feet and some are over 2300 square feet. Advantage-Kanani. Some Kai Malu units have a small, private pool and spa. Kanani units do not. Advantage-Kai Malu. Some Kanani units have amazing ocean views, so do some Kai Malu units. Advantage-None, it goes unit by unit. Kanani floorplans are twice as wide as Kai Malu. Advantage-Kanani. The quality of materials and finishes vary greatly depending upon upgrades packages chosen. But Kanani units get Wolfe and Sub zero quality appliances, Leicht cabinets etc. Kai Malu units do not. The quality of the Kanani granite, bathroom tiling etc. is also superior. Big Advantage-Kanani. Kanani exterior finishes are battan, Kai Malu are stucco. Advantage Kai Malu.
Kanani Wailea, the newest residential condominium project in Wailea now has two striking deals available. The first is unit 20 which we have discussed before. Two stories, totally detached for privacy, three-bedrooms, 2300 square feet , a two car garage and a list of upgrades too long to mention here. A tremendous ocean view comes with the price of $1.599 million. The latest is unit 29 or 96 Poailani. This detached residential condominium has four bedroom, 4.5 bathrooms in 2297 square feet on a single story. The property offers an ocean view. The counters are granite, the appliances top of the line, the bathrooms tiled, the ceilings vaulted and the garage holds two cars and boasts a storage room. Check the pictures below.
David Lareah, the economist for the National Association of Realtors has update his views and issued a press release today. It is getting a lot of attention. Here it is. Here are his key points:
Today's research from Wall Street behemoth Morgan Stanley offered some interesting tidbits.
2010 Maui Meadows Real Estate Report Now Available!
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