A LOOK BACK AT 2014: THE KAPALUA REAL ESTATE MARKET
As 2014 draws to a close, it’s been a remarkable year for the Kapalua Resort real estate market with just 43 properties selling at a total of over $108 million.
THE MONTAGE RESIDENCES KAPALUA BAY
In 2014, the Kapalua market was most significantly impacted by the launch of re-sales at the Montage Residences, Kapalua Bay (formerly the Ritz-Carlton Club and Residences, Kapalua Bay). Sales this year totaled $46,785,000 and averaged $5,848,125, with only one resale. With four bedroom sales ranging from $7.5-8.25M, the property set record high condominium sales not only for the Kapalua Resort, but for West Maui in general.
Originally, this development launched in 2009, at the downturn of the market. Prior to the foreclosure in 2013, sales ran through 2011, and topped $53,747,552 (developer and resales) and averaged $3,839,111.
Without the sales of the Montage Residences, Kapalua Bay, the sales volume in the resort would have been just under $62M instead of $108M; median sales up only +10% instead of +29%; and average sales up +1% instead of +45%.
Overall, in 2014, while the number of transactions were down -19%, the sales volume was up +17% in the Kapalua Resort.
THE RITZ CARLTON KAPALUA RESIDENCES
2015 should be very interesting as well from a developer sales perspective, with the anticipated sales launch of the remaining Ritz-Carlton® Kapalua Residences (formerly the Residential Suites at the Ritz-Carlton®, Kapalua).
In 2007, the Ritz-Carlton®, Kapalua underwent a spectacular renovation. The North Wing was transformed into 107 luxurious, whole-ownership, one and two-bedroom residential condominiums. Sales began in 2008, and 34 were purchased by private individuals.
After foreclosure, the hotel was sold in early 2014 to Honolua Associates, a partnership between two capital companies. With the hotel, the new ownership group acquired 73 unsold condominium residences, which will be offered for sale. Please contact me for more information and to register to be kept updated on the upcoming condominium sales at the Ritz-Carlton, Kapalua.
As of today, there are approximately 114 listings in the resort. Calculating the Absorption Rate, there is currently 32 months of inventory available in the resort—this is a higher figure than we had at the same time last year, with 21 months of inventory.
While this is considered an overall BUYER’S MARKET, it is important to note that not all properties are created equally: sought after views and floor plans tend to move quickly in the marketplace, and buyers have paid a premium for outstanding locations within the resort. Each neighborhood is different, with varying inventories and availability.
I’ll be putting together a more comprehensive report for the Kapalua resort shortly–stay tuned and Happy New Year!