Luxury home buyers
spent freely in ’03
Luxury home buyers had plenty of cash to spare in 2003 as a record number scooped up multimillion-dollar homes in residential neighborhoods and master-planned resorts.
Home and condominium sales at resorts statewide continued their strong performance through the third quarter of 2003. Year-end total revenue projections are now likely to reach $1.5 billion, up from the $1.4 billion originally projected at mid-year, according to data collected by real estate analyst Ricky Cassiday.
LIkewise, Cassiday predicts the number of home sales projected to close for the year should increase 27 percent to 2,056 homes from 1,614 sales in 2002.
While luxury home prices were down 10 percent year-over-year in mid-2003 to an average paid statewide of $736,055, projections indicate the average price paid during the year will move up 9 percent to $803,096 when all the numbers are in, Cassiday said. The second-half surge would make leave the year-end average price 6 percent ahead of 2002.
The Valley Isle is leading the way so far in both the number of sales -- 699 sales projected -- and also the top price paid for a home at $13.4 million. However, the highest average price of just more than $1 million paid for a luxury home occurred on the Big Island.
Given 2003's favorable sales results, developers are looking forward to more of the same this year.
Such is the case for Maryl Development's activities at Big Island resorts.
"We've broadened our footprint in luxury housing from our base at the Mauna Lani resort," said Mark Richards, president of Maryl. "We have product coming up in the Waikoloa resort and the Kukio Beach Resort."
Likewise, Michael Kosmin, vice president for sales and marketing for Centex Destination Properties, a division of Texas-based Centex Homes, said the company enjoyed a banner year in 2003 with about $95 million in sales. He said the company will continue this year with its projects on the Big Island and begin a new Oahu project. Centex also is looking for more land on all islands.
The company sold out phase one of its Kolea project in Waikoloa, which includes 17 ocean- and beach-front lots and 42 condos. It expects to begin phase two sales of the project this weekend.
"We'll have two-bedroom condos in the $800,000 range, then some additional three-bedrooms -- a total of four buildings or 24 units," Kosmin said.
Centex is also preparing to get going on its Oahu Ko Olina Kai project, Kosmin said.
"We'll have 60 single-family homes in Ko Olina and 264 condos," he said. "Our plan is to be the first branded second-home resort. So we are virtually looking on every island for product."
Coldwell Banker Pacific Properties reported there were 259 homes sold for $1 million or more on Oahu in 2003, a 54 percent increase over the 168 sales in 2002.
Sales volume in luxury homes exceeded $495 million, a 68 percent increase over 2002's volume of $295 million.
Coldwell Banker's data was compiled from the Honolulu Board of Realtors' sales records of previously owned homes on Oahu.
The company reported several of the home sales set record prices.
For example, along the Gold Coast, a Coral Strand penthouse sold for $3,950,000, the highest sale recorded for that building, breaking a 1999 sales record of $3 million. A Diamond Head home sold for $6 million; a North Shore home on Papailoa Road fetched $2,200,000.
