Maui’s Condominium Market Enjoys Strong Growth

Prudential Locations’ Third Quarter Maui Real Estate Report showcases Maui’s condominium price trends over the last three decades.

HONOLULU, HAWAII (October 25, 2007) – New data from the Prudential Locations’ third quarter (July to September) Maui Real Estate Report reveals that Maui’s condominium market continues to enjoy strong upward growth in both sales and median prices. From July to September 2007—compared to the same three-month period last year—condominium median prices rose 11.1 percent from $495,000 in 2006 to $550,000 in 2007, a $55,000 price jump. In addition, condominium sales were up an impressive 27.3 percent over last year.

The report also shows that while Maui’s condominium market is developing at a healthy rate, during this same time period, Maui’s single-family homes market is cooling. Compared to the same quarter in 2006—single-family homes sales saw a 4 percent decline and median prices fell 17.5 percent.

“We attribute this quarter’s growth in condominium pricing and sales to the completion of new luxury resort developments in South Maui,” said Scott Higashi, Prudential Locations’ Executive Vice President of Sales. “These trends are driven by consumer demand, and right now buyers are willing to pay competitive prices for their own slice of paradise on Maui.” Condominiums in resort areas experienced the highest median prices. The Wailea/Makea neighborhood reported prices at $1,228,000 followed closely by the Kapalua area at $1,175,000. The median price for areas with a mix of residential and resort condominiums such as Kaanapali,
Lahaina and Kihei were slightly lower—ranging from $725,000 to $395,000.

In this quarter’s report, Prudential Locations also examines the historical price trends of Maui’s condominium market. The report reveals that over a 30-year period, from 1977 to 2007, Maui condominium median prices skyrocketed over 500 percent. Most of this price appreciation occurred within the last few years—from 2004 to 2006, this market experienced exceptional growth with prices increasing more than 24 percent year over year. The median condominium price rose $189,000 within those three years. Although Maui’s condominium median prices in 2007 are not increasing as rapidly as in previous years, Prudential Locations’ expects that the this market will continue to see price appreciation at a moderate rate due to the Maui’s limited real estate developments and high quality of life.

Prudential Locations has the largest real estate research database on Hawaii’s real estate markets, and is the only source for detailed and concise information on not only the 18 areas identified in the Maui report, but for more than 1,000 specific neighborhoods statewide. The research is available to consumers through Prudential Locations agents or the website, www.prudentiallocations.com. Prudential Locations’ Maui Real Estate Report is issued during the third week of the month following the previous quarter.

NOTE TO MEDIA: Prudential Locations executives are available to comment on the report and on real estate market trends in general. Please call Char Chang, 531-6087, ext. 104, to set up an interview.