New-home sales climb on O'ahu

By Andrew Gomes
Advertiser Staff Writer

Sales of new homes on O'ahu rose in February thanks to a new high-rise condominium under construction in Kaka'ako.

The 60 sales for an average price of $800,000 at the Ko'olani condominium pushed the total number of sales to 256, which was up 21 percent from 212 sales a year earlier and was the strongest February in 10 years, according to a report by Ricky Cassiday for Hawai'i HomeLoans.

Condominiums are driving the growth in new home sales because of a lack of supply of new single-family homes. New single-family home sales were down 8 percent in February because developers cannot build homes fast enough, Cassiday said.

Despite the lofty average sales price at the Ko'olani condominium, the average overall price for the month was down slightly to $383,913, compared with $405,925 a year ago, because of sales that averaged more than $1 million last year at Hokua, another Kaka'ako luxury high-rise.

Cassiday said the market is likely to see average prices climb back up in coming months as developers raise prices of new homes in step with increasing property values recorded with sales of previously owned homes.

Last week, the Honolulu Board of Realtors reported that 348 previously owned single-family homes were sold in February — the highest ever for that month — and 606 previously owned condos were sold. The median price for previously owned single-family homes rose to $439,000 last month.

Spikes in sales volume for new homes also are anticipated later this year as sales begin to close for other condo towers with hundreds of units in the sales and development pipeline, Cassiday said.

Last month, developers of Moana Pacific, a twin-tower high-rise on Kapi'olani Boulevard, began taking sales reservations and sold out 220 units released for sale in the 353-unit first tower.

"It's incredible," said Chad Lovell, a spokesman for developer KC Rainbow Development LLC. "The demand is there."

Moana Pacific, where units range in price from about $330,000 to $500,000 — and as much as $3.8 million for one of several penthouse units — has scheduled a release of another roughly 125 units for sale through an April 26 lottery.

The recently ended concrete strike did not affect new-home sales in February, but may have delayed closings for March because homes needing driveways and other concrete work could not be completed and delivered to buyers.

The strongest single-family home sellers in February were American Classics by Castle & Cooke in Mililani with 31 sales, Ocean Pointe by Haseko Homes in 'Ewa Beach with 23, and Gallery Homes by Castle & Cooke in Royal Kunia with 14.

The biggest-selling multifamily projects after Ko'olani by Crescent Heights were The Coconut Plantation by Brookfield Homes at Ko Olina with 22 sales and Havens of I'i Vistas by Castle & Cooke in Mililani with 18.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.

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