Buyers
An overview of the types of buyers currently active in the market for this type of asset. If international buyers are applicable, provide detail on travel restrictions and other impacts to the sales process.
The largest demographic of prospective buyers is very likely from the west coast of the U.S. continent and from technology or finance industries. Smaller demographics include the entertainment industry; oil and gas; and foriegn nationals (primarily from Japan or Canada but including a relatively short list of other countries.)
The buyer for the Casa De Plata is likely already pre-wired to Hawaii Island, in that they may already own property on the island and/or visit frequently. On a rare occasion, the buyer may be altogether new to Hawaii.
The history of luxury real estate along the Kohala Coast has long been hard-wired to wealth from the west coast of the U.S, beginning with Mauna Kea Resort in the 1960’s and evolving into destination resorts such as Kona Village and further into private club communities such as Hualalai, Kukio, and Kohanaiki.
While the largest segments of historical buyers come from either the technology or finance industries, other industries include oil and gas, real estate development, and entertainment (including both high-profile celebrities as well as producers in both music and film). Foreign nationals and the occasional sports figures round out the smaller groups.
Many of the buyers have common lifestyle interests as well, such as golf, boating, diving, fishing, or any combination of various outdoor activities available on the Big Island.
Travel Restrictions
The border between the U.S. and Canada has reopened, but still with strict Covid-related travel requirements. Restrictions for Japanese nationals are slowly easing, although travel between the U.S and Japan is almost nil. We expect increased demand in high-end real estate from foreign nationals as travel begins to resume.
Exhibits:
Market Report
2022 Hawaii Luxury Market Report
LPI Whitepaper
LPI Market Report.pdf
Canada Travel Rules
https://www.canada.ca/
Japan Travel Rules
https://www.japan.travel/
“The dry powder on the sidelines isn’t going to sit idle for much longer”
– Matt Beall, 2022 Hawai‘i Luxury Market Report
The pandemic-related market run that we experienced in Hawai‘i’s ultra-luxury real estate sector was logistically unsustainable - by simple measures of supply and demand. Everything that could trade, did. We simply ran out of supply.
But we certainly haven’t run out of demand.
And here’s where it gets interesting. There is an extraordinary amount of dry powder sitting on the sidelines. Waiting. Watching.