Maui real estate has experienced an astronomical rise over the last 2 years! Not only has low supply contributed to the appreciation, but has also finally secured its place on the international stage of luxury properties with the Jeff Bezos’ Makena purchase, a record $45mm Keawakapu sale, and $58mm Kapalua estate hitting the market this year.
Let’s take a look back at the numbers and see just how much and in what price points have seen the most appreciation.
- BASE refers to the 12 months of closings before the pandemic, meaning April 1st, 2019 through March 31, 2020.
- PAN YR1 refers to closings within the first full 12 month period of the pandemic (April 1st 2020 to March 31st, 2021).
- PAN YR2 is for closings in the second year of the pandemic (April 1st, 2021 to March 31st, 2022).
Market-Wide Findings For Comparison
The average sales price for vacation condos increased 27.18% over the last two years (YR2 vs BASE) and reached $1,165,522.
Most of the increases occurred in the first year of the pandemic: the pre-pandemic (BASE) average sales price was $916,419 and the PAN YR1 average surged to $1,100,933 which is a 20.13% increase.
Sold price per sqft is often a better metric for better understanding market appreciation across all the different condo configurations: The average sold price per sqft increased 24.58% over the last two years (YR2 vs BASE) and reached $1,119.15/sqft.
The pre-pandemic (BASE) average sold price per sqft was $898.30 and the PAN YR1 average went up to $953.45 which only a 6.14 increase. The larger increase took place in PAN YR2 which went up 17.38%.
3BR vacation condos
As shown in the chart above, the greatest appreciation was seen for 3BR vacation condos. The average sold price for 3BR units increased 60.31% over the last two years (YR2 vs BASE) and reached $3,975,764.
The small increase seen in the first year of the pandemic stands in stark contrast against the significant price increase in the second year of the pandemic and really tells an interesting story about buyer’s priorities.
Here are some of the communities that saw the highest appreciation for 3BR units during the pandemic based on average sold price per sqft:
- Honua Kai average sold price per sqft reached $2,059.85/sqft which is up 97.09% from the pre-pandemic (BASE) which was $1,045.15. The average sales price for 3BR units at Kaanapali Plantation reached $4,190,778 in PAN YR2.
- Koa Resort reached $732.20/sqft which is up 57.67% from BASE which was $464.40. Average sales prices for 3BR units at Koa Resort reached $1,011,300 in PAN YR2.
- Wailea Point reached $2,449.83/sqft which is up 45.42% from BASE which was $1,684.68.
- Ho’olei went up 37.35% to $1,399.84/sqft
2BR vacation condos
2BR Units also saw their big increases in PAN YR2: The first year of the pandemic saw average price for 2BR units at $1,055,800, the average surged up 16.94% in year two to $1,234,655.
Here are some notable communities that saw the significant appreciation for 2BR units during the pandemic based on average sold price per sqft:
- Kahana Villa had one of the most significant increases reaching $667.38/sqft which is up 68.48% from the pre-pandemic (BASE) which was $396.12. The average sales price for 2BR units at Kahana Villa reached $823,500 in PAN YR2 which was 63.33% higher than pre-pandemic average which was $504,200.
- Puamana ended PAN YR2 with an average of $1,481.00/sqft which was up 61.63% from the BASE which was $916.27. There were 11 sales of 2BR units at Puamana in PAN YR2 and the average sales price was $2,002,636 (up 72.64% from BASE which was $1,160,000).
- Makena Surf reached $2,657.12/sqft in PAN YR2 which was up 53.08% from BASE $1,735.77.
South Maui vs West Maui
As shown by the above line chart, there are some key differences in terms of how appreciation was distributed across the island. In the BASE year, the difference between South and West was much wider for average sales price with West Maui significantly higher.
South Maui spiked up significantly in PAN YR1 (by about 38.90%) while West Maui only increased 10.71% in the same period. By the end of PAN YR2 the difference had narrowed between these two regions in terms of average sales price. YR 2 increase from BASE was 48.74% for South Maui compared to just 15.56% for West Maui.
For 3BR condos, West Maui 3BR condos actually saw an 11.52% drop in average sales price while the South Maui 3BR market surged during that same time.
One factor that contributed to the drop in West Maui was Montage Kapalua: The average sales price for 3BR units in that community dropped 8.81% in the first year of the pandemic (PAN YR1). 7 out of the 11 units sold in the first year of the pandemic were developer sales and some of those units might not have been in the prime locations that would fetch high prices.
- A side about Montage: When comparing total appreciation over the 2 years of the pandemic (PAN YR2 vs BASE), Montage stands out as one of the only major luxury community that saw only single-digit appreciation (only 8.56%) for sales price of 3BR units. Ho’olei had a 27.15% increase, Wailea Beach Villas had 55.79% and Honua Kai had 97.23% increase. On the positive side, that means there’s buyer opportunity to get a 3br condo at Montage for less than many other luxury communities.
2BR condos were a bit more balanced between the regions. The first year of the pandemic saw more appreciation for West Maui but then South Maui surged ahead in the second year with a 24.06% increase in average sales price.
Please interview me to be your trusted Maui Real Estate and Lifestyle Advisor. I was born and raised on the island, and spend a considerable amount of time to inform my clients about the best deals currently on the market. Please do not hesitate to call me for your Maui real estate needs. I am more than happy to assist you in your home search.
We are also on-site real estate team at the Ho’olei villas, we are open from 9AM-5PM daily, so feel free to stop by anytime. Also, see a full list of Wailea condos for sale and Makena condos for sale.
Anthony Sayles R(S)