Homes in Ko Olina Resort are commanding premium prices thanks to the new Four Seasons Resort Oahu, with the average price of luxury homes rising by 22 percent since the hotel was first announced, according to a report by real estate consultant Ricky Cassiday.
The report compared resort market closings from condominiums and single-family homes on all islands with closings at Ko Olina from the fourth quarter of 2015 to the third quarter this year, examining two price ranges: more than $1 million and more than $500,000.
For both criteria, Ko Olina’s price change exceeded that of the total market.
“There has been reticence against development in Hawaii since the ’80s, so there hasn’t been zoning for resorts because people turned against it, and Ko Olina is one of the few remaining resorts which has a lot of space,” Cassiday told Pacific Business News. “Four Seasons was a big deal, and it will continue to lift up the community.”
For home sales priced at over $1 million, there were 11 sales during the four quarters examined by the report, with the average price surging 22 percent from $1.1 million to $1.4 million. For all homes in Hawaii’s resort market, sales jumped from 96 to 359 with the average price jumping 10 percent from $2.3 million to $2.6 million.
For home sales priced at $500,000 and above, there were 66 sales from the fourth quarter in 2015, and the average price jumped 11 percent to $771,475 from $696,059.
For all homes in Hawaii’s resort market, there were 740 sales in that time frame with the average price jumping 9 percent to $1.6 million from $1.5 million. Based on this data, the announcement of the new resort in Kapolei apparently affected both sales and prices of homes and condominiums in the area.
There were 77 sales in the resort area since the August 2015 announcement, including a four-bedroom, three-bath 2,124 square foot home sold in August for $1.4 million and a two-bedroom, two-bath 1,315 square foot condominium at the Ko Olina Beach Villas sold in April for $1.8 million.
Currently, there are 35 active listings in Ko Olina. “It’s like when you find gold, and everyone rushes in and some businesses get rich. The same is going on in Ko Olina,” Cassiday said. “The Four Seasons has brought in a lot of investment which will bleed into the community with jobs, income and confidence.”
Down the line, Cassiday believes this market activity could drive new schools to the area, and new residential real estate development in West Oahu. The resort, located adjacent to the Disney Aulani Resort & Spa, opened in July and joins Ko Olina Beach Villas Resort, Ko Olina Golf Club, Ko Olina Marina, Ko Olina Center and Marriott’s Ko Olina Beach Club.
The 642-acre gated resort community was designed to accommodate four- and five-star resort hotels and residential, commercial and recreational uses and was acquired by Jeff Stone, president and CEO of The Resort Group, in 1997.