The effects of COVID-19 on the Hawaii Real Estate market back in March pointed to a grim future as the virus started to sink its teeth in earlier this year. Oahu home sales dipped significantly, would-be sellers sat on the sidelines in fear of the exposing their homes to strangers, and purchase cancellations spiked across the board.
After 20 years of planning and rumored sales launches dating back to 2018, one could only imagine that Castle & Cooke Hawai'i would have have picked any other time but now to launch sales for their highly anticipated Koa Ridge project. However, current sales data from Locations LLC sees certain neighborhoods turning Coronavirus lemons into lemonade and Koa Ridge is poised to pour themselves a tall glass to weather the hot summer buying season.
Oahu Real Estate amidst the pandemic
As of June, new listings are down 21% over the same time last year while interest rates teeter around record lows; sparking an influx of buyer demand in certain neighborhoods. This dynamic puts an exclamation point on the intense Oahu housing shortage that acts as a beacon residential real estate developers across the globe. NorthPark by Gentry, a project offering new homes in Ewa Beach held their first lottery release this past weekend with reports of 60 applicants vying for 10 homes. Ho'opili by D.R. Horton Hawaii is also still seeing a significant amount of demand for their Affordable & Market Priced new homes for sale in Ewa & Kapolei.
The data provides optimism and a proving ground for Koa Ridge as it plans to launch its first 37 single family condominium homes within the "Nanea at Koa Ridge" phase amidst the greatest public health concern of our lifetime. The project's starting price of high $800,000's is going to be new territory in the Central Oahu real estate market and it will be interesting to see how well it's received. The Cost of Living in Hawaii has been plagued by rising home prices leaving the state perplexed on how to relieve it.
Koa Ridge will have more reasonably priced options coming later in the year by way of the Luana duplex options from low $700,000's as well as the Malina townhomes offered under Honolulu Affordable Housing restrictions; starting prices pinned in the low $400,000's.
Model homes won't be finished until next year which will see the first batch of residents having purchases off of floor plans alone; a testament to the demand that Koa Ridge expects they will receive. The community will ultimately take shape over the course of a 10 year development plan that includes 3,500 homes, restaurants, retail stores, a medical center, hotel, and the 7.5 Mile "Ho'ala Trail" that will allow residents to traverse the neighborhood on foot or by bike.
Castle & Cooke Hawaii expects to offer 200 homes for sale at Koa Ridge in 2021, including 100 Affordable Housing units with income and eligibility restrictions as determined by the state's leading As it stands, there are (4) Lead Lenders who have been approved to lend on the project and we should expect Castle & Cooke Mortgage to be the 5th lender. Like most previous new Oahu home projects, we should see the developer require buyer's to obtain a Prequalification Letter from one of the approved lenders in order to participate in the lottery. It's unclear at this time whether financing incentives will be offered by the lead lenders but we will deliver updates via our newsletter as more information is made available.
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