Elite Pacific Properties is pleased to present you with a closer look at the luxury residential real estate market in Hawaii, showcasing detailed statistical analysis of Kauai, Oahu, Maui and Hawaii Island for April 2020.
Hawaii’s strict lockdown during April made it very difficult for buyers to visit the islands, which in turn has obviously had a direct impact on the number of sales for the entire real estate industry – and the luxury market is no exception. In general, the sales activity was slow, although single-family homes fared better than condos, which are down by an additional 16%.
This significant drop in condo sales, especially in the luxury market, reflects a change in demand by the affluent who, due to Covid-19, are now looking to invest in stand-alone properties to ensure a safe haven for their families.
Our agents also report that conversations with potential buyers about their priorities have swiftly changed. Previously there had been a high demand for properties with smaller footprints, now discussions centered around finding a larger living room and kitchen space, having a dedicated home office as well as recreational and outdoor spaces for activities.
At this time, the true demand for properties in Hawaii is masked by the situation and therefore difficult to assess. Not only have demands changed, but sales have been delayed and listings removed from the market. However, we are seeing significant interest in our luxury portfolio, although the current state of our quarantine combined with the volatility of the stock market are also causing affluent buyers and sellers to have to play the waiting game.
Ultimately this pent up tension should be positive for our luxury market especially once travel restrictions are lifted. The amount of interest, combined with persistently low inventory, should create promising growth opportunities as we come out of the COVID-19 lockdown.
That being said, our agents have always dealt with off-island clients and, having already embraced some of the more sophisticated technologies and methodologies, are now refining and modifying their systems to successfully provide their services to sellers and buyers who wish to move forward.
As we move into the next phase of ‘starting to open up’, there will be new processes and approaches that will constantly require agents to stay agile, which is why Elite Pacific Properties is committed to being a progressive real estate company that embraces change.
To view the full report, please click here.