This $ 23.5 million mansion in Kauai was recently sold to guitarist Carlos Santana.
Hawaii’s luxury real estate market is reaching all-time highs, fueled by several factors, including pent-up demand due to the coronavirus pandemic, record interest rates and rising stock markets.
In the first three quarters of this year, homes valued at $ 3 million or more saw sales volume increase 234.5% compared to the same period in 2020. Transaction volume reached a record $ 3.7 billion, according to Hawaii Life Luxury Market Report. But sales of homes priced above $ 10 million have increased at an even faster rate, breaking state records.
“It’s just like a rocket,” said Hawaii Real Estate CEO Matt Beall. “With strict reference to the data, this is just an amazing and amazing event for the market.”
Beall, who has been selling Hawaii real estate since 1998, said he’s never seen a market move faster because the vast majority of the high-end deals his company has negotiated are bought in cash.
This Maui mansion has five bedrooms, five and a half baths, and an ocean view. It recently sold for $ 12.5 million.
“There were people who introduced themselves, they said to themselves: ‘Okay, I am [going to] â¦ Offers an invisible view of this house. … It’s going to be a two week shutdown. I’m going to have 13 day due diligence, I’m going to fly on the 12th day,â¦ meet all the inspectors,â¦ and move in on the 14th day. ‘”
Beall said the pace had been “aggressively fast” with some $ 20 million in deals closed in 30 days.
âI think that pace has caught not only the profession but also the salespeople off guard. You know, it’s likeâ¦ it’s not normal,â he said.
This Maui mansion spans over 5,800 square feet with five bedrooms and four and a half baths. It recently sold for $ 18 million.
The state’s previous volume record was set in 2017, when the first three quarters of the year saw 317 transactions and $ 1.67 billion in total luxury home sales. During the same period, 2021 saw more than double the volume of sales and twice of transactions, with 634 sales of homes priced above $ 3 million. That’s an average of around 16 luxury homes that sell per week, every week for 39 consecutive weeks.
“The volume and speed of the Hawaii real estate market has shattered all historical records and standards previously held, âBeall said in his report.
The view from the infinity pool of a Maui mansion that recently sold for $ 18 million.
Remarkably, the gains come at a time when most foreign buyers have been unable to make it to Hawaii and participate in the record-breaking shopping spree due to Covid-19 restrictions. In 2019, foreign buyers made up about 4% of home sales in the state, Beall said.
âIt’s really important to me that all of this, or the vast majority, has been done at the national level,â he said.
Real estate firm Hawaii Life is also having a record year, Beall said, with more than $ 3 billion in sales in the first three quarters. Luxury home sales accounted for $ 1.38 billion of total sales volume.
This 4,758 square foot mansion in Kauai was recently sold for $ 21 million.
According to data, the state’s average luxury home sold for more than $ 6 million, up 12.4% from the same period last year, with an average price per square foot of $ 1,795.
“We are seeing buyers in the entertainment, tech, and financial industries buying both high-profile and off-market ads, and at record prices,” Beall said in the report.
Most spectacular in this high-speed market has been the tremendous growth seen in the ultra-luxury market, which includes homes priced over $ 10 million. In the first three quarters of 2021, there were 64 transactions totaling $ 1.06 billion in sales in this segment – a 602.9% change in dollar value from the first three quarters of 2020 and more than six times the number of transactions.
This 8,173 square foot island home in Kauai was recently purchased by legendary guitarist Carlos Santana.
Despite the speed of the market and its stratospheric rise, Beall sees no signs of foam.
“I don’t feel like it’s super sparkling yet and everything is going to fall apart yet. But I think it’s just my kind of awareness of how big the demand is and how big the market is.” , said Beall. .
Among the 64 deals that exceeded $ 10 million, there is a deal involving legendary guitarist Carlos Santana. He bought a 8,173 square foot mansion on the island of Kauai for $ 20.5 million. Beall said his company represents both Santana and the seller.
Hale Makana Ola is an oceanfront property in Maui that recently sold for $ 12.5 million.
In the state’s eight large islands, most of the growth in ultra-luxury sales came from the Big Island, which saw a 1,582% change in sales volume from 2020. This gain was followed by Maui, which saw a 644% increase in sales. volume and Kauai, up 640%.
In the first three quarters of 2021, the Big Island accounted for $ 393 million in sales volume, or 37% of the state’s total sales in the ultra-luxury category.
This $ 18.5 million compound was recently sold on the Big Island. It is made up of seven tropical pavilions that house spaces for eating, meeting, sleeping, guests and more.
Beall’s company represented Capital Group portfolio manager Claudia Huntington, who sold it 6,674 square foot residence on the Big Island. The house is made up of seven pavilions overlooking Kauna’oa Bay. It sold for $ 18.53 million, or about $ 2,776 per square foot.
âI’m actually weirdly optimistic about the value.â¦ One thing I know about Hawaii versus, say, Florida or New Yorkâ¦ we’re literally like a grain of sand, surrounded by 2,000 miles , it’s a very small market. âBeall said, adding that the market had a declining inventory.
This private residence perched above Kauna’oa Bay on the Big Island was recently sold for $ 18.5 million.
âIf you look at any inventory chart it’s like, bottom and right, and a flat line. Prices are being pushed up by a lack of supply,â he said. .
The high level sales have also attracted attention and interest in the tropical market. Mark Zuckerberg and Priscilla Chan reportedly bought an additional 600 acres of land in Kauai for $ 53 million in March, bringing their total stake in the islands to around 1,300 acres.
Here’s a look at Carlos Santana’s new island home in Kauai.
The exterior view of the four bedroom, four and a half bath Santana residence in Kauai.
According to the list, the Santana complex is made up of three main buildings, or pods, connected by a common outdoor living space.
View of the bay and the mountain from the estate’s infinity pool.
The house offers stunning views of the lush green mountains and Hanalei Bay.
A retractable roof and open architecture blur the lines between interior and exterior.
The central area can be used for outdoor dining.
A retractable glass roof opens to the sky above a shiny onyx bar.
It has a shiny onyx bar and barbecue that sits under a retractable glass roof.
Open-air living room with vaulted ceiling in stained wood.
There is a veranda style living room under vaulted stained wood ceilings.
A view of the kitchen.
The main pod spans 3,738 square feet and includes a kitchen with two stainless steel Wolf ovens, two sinks, custom wood cabinetry and a stone-covered island in its center.
The formal dining room and living room.
The larger pod includes a living room and a formal dining area.
A view of the dining room from the veranda.
The interconnected architecture is designed to frame the breathtaking landscapes of the island.
A second pod includes a 1,275 square foot owner’s suite, as well as an office.
The outdoor shower is surrounded by lush greenery.
An outdoor shower is hidden behind a stone wall and surrounded by lush gardens.
A view from one of the four bedrooms of the house.
The third pod of the estate houses two of the house’s four en-suite bedrooms.
An infinity pool and hot tub overlook Hanalei Bay.
Rooms are steps from a saltwater infinity pool with a hot tub and shallow-water solar ledge with seating for two.
There is seating for two on the edge of the pool.
The house sits on 0.81 acres of land. Last year, property taxes stood at $ 44,776, according to the listing.