In this month’s Oahu real estate market deep dive, presented exclusively to Locations agents, Lead Research Analyst John Jacobson, updated agents on trends, buyer activity and the rental market in the Kaka’ako neighborhood.
Below are five key takeaways from John’s presentation that just might surprise you!
1. Kaka’ako’s median (resale) condo price is almost two times higher than the overall Oahu condo median price. At $885,000, Kaka’ako’s median (resale) condo price is almost two times higher than the overall Oahu condo median price of $505, 000 in 2023.
2. Luxury units make up about 40% of resales. Luxury units made up about 40% of resales in Kaka’ako so far in 2023. About 60% of current listings are for luxury units. Entry-level resale properties in Kaka’ako are virtually non-existent.
3. Local buyers are still the main buyer group in Kaka’ako. Buyers from within Hawaii are still the main buyer group in Kaka’ako, making up 67% of buyers in 2022. However, the percentage of local buyers in Kaka’ako has been trending down over the past several years. At the same time, the percentage of buyers from the U.S. continent and abroad has been trending up to 17% and 16%, respectively, in 2022.
Buyers from within Hawaii made up 67% of Kaka’ako buyers in 2022.
4. Japanese buyers prefer Kaka’ako condos. Compared to other areas on Oahu, Japanese buyers as a group prefer Kaka’ako.
5. The average monthly rent in Kaka’ako is now more than $3,500. The average monthly rent in Kaka’ako is the highest it’s ever been at $3,568 a month—a significant jump. There’s also been a noticeable increase in rental activity in Kaka’ako in the past two years.
What’s Next for the Kaka’ako Market?
According to John, the Kaka’ako real estate market is trending upward. Condo prices are down from 2022, but higher than 2021. Kaka’ako resale condo sales are down from last year, but easing. There is still strong demand from multiple sources for Kaka’ako condos; however, demand is softening a bit as we head into the winter months—typical for the Oahu market overall.
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