A slow start, but a strong finish
Overall, sales volume in the luxury estate segment — properties selling for $1.5 million or more — on Oahu dropped 6 percent in 2019.
According to Patti Nakagawa, Global Luxury® director for Coldwell Banker Pacific Properties, single-family home sales in 2019 decreased 5 percent — from 381 sales in 2018 to 362 sales last year. Fewer luxury condominiums sold as well — down 9 percent — with 150 sales last year, compared to 164 in 2018.
Despite the island wide downturn, Kailua Beachside sales were up 21 percent, from 19 homes sold in 2018 to 23 homes sold last year. Double-digit increases were also reported for Hawaii Loa Ridge, Portlock/Koko Kai/Triangle, Waialae Iki, Diamond Head/Black Point/Puu Panini, and Lanikai.
“The trouble area throughout the year was single-family homes priced at $6 million and higher, which dropped unit and dollar sales by half,” said Nakagawa. “The good news is we still have buyers interested in luxury properties on Oahu, and there’s a much greater demand and urgency in the lower price ranges up to $2.5 million.”
December 2019 stats
Notably, after a slow start in the beginning of last year, sales volume of luxury properties had a strong finish. December 2019 statistics showed a dramatic bump up in sales, up a whopping 51 percent from December 2018, with 53 luxury homes selling in December, compared to 35 sales in December 2018. The segment priced between $1.5 million and $2 million saw volume surge 33 percent jump in sales during the same period. Sales volume dropped 29 percent in the $2 million to $4 million range, while home sales over $4 million increased 33 percent.
December was also a banner month for luxury condominium sales. Luxury condo sales were up significantly — with 24 sales in December, as compared to 10 in the same period the year before. All price ranges performed well. In the $1.5- to $2 million range, sales were up 140 percent — 12 sales in December 2019 versus five in 2018. Condos priced $3 million and higher moved from a single such sale in December 2018 to eight in December 2019 — an incredible 700 percent jump.
The neighborhoods with the highest volume luxury sales were Kakaako, with eight closed sales over $1.5 million, followed by Waikiki, where seven units sold in December.
Overall, the December median sales price for all luxury range properties was $1.85 million, down just slightly from the median sales price of $1.986 million in December 2018.