What Are The Best Areas On Oahu In Terms Of Resale Value?

Kirk asked this during the live show from our YouTube channel:

What are you thoughts on the best area for Oahu resale value of a single family home? Kapolei or Ewa Beach vs. Kailua or Kaneohe area?

This short clip came from our Aloha Friday Hawaii Real Estate Show which goes live every other Friday on our Hawaii Real Estate YouTube channel or our Living in Hawaii Facebook page

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Show transcript:

we have another one here from kirk kirk
says what are your thoughts on the best
area on oahu for resale value of a
single family home kapolei or eva or
kailua or kaneohe area what would you
say scott
yeah so i’m the numbers guy i’ve over
analyzed the stuff to death over the
years uh just being the developer and
the investor and stuff um
i mean kailua kailua is always going to
hold its value
the reality is is no area appreciates in
an accelerated fashion more so than
another
it’s typically four and a half percent
roughly over time um
you’re safe going in any of these areas
because we’re limited in land that’s one
thing about hawaii and oahu in
particular is and i had this
conversation with a client the other day
diamond head is always diamond head you
know
kapolei is always going to be kapolei
you can’t go
two three more miles down the road like
you can in phoenix arizona and start a
new subdivision and yours becomes the
old subdivision and that’s less
desirable than the new subdivision we
have significant consistency because of
the lack of supply we’re landlocked and
limited
so therefore the performance over time
is going to be consistent all around if
kailua was to take off in a trajectory
all of a sudden eva is going to look
like a value and it’s going to follow
right behind it
so you’re facing
so really it’s sort of like overall the
island as a whole has the you know the
reset values don’t vary that much dylan
is that the same thing on the big on do
is there is there much variance in terms
of you know growth rates of of of resale
value of one versus the other or is it
kind of just pretty much the you know
like the old uh you know a rising tide
rises all ships kind of a thing in on
the big island
uh not necessarily the the with the real
rural areas of the island you know over
the years have become
i don’t want to say less desirable but
with the
with the shutdown of sugar and other um
agricultural operations there is less
demand for housing and so
other things followed suit right grocery
stores closed down other shops closed
down so
in the real rural areas of the island i
mean it still appreciates over time but
it’s it’s it’s slower than the desirable
um more built up areas like kona or hilo
uh so that’s one thing to consider and
you can but you can still get a really
nice house for 250 300 000 in south
south kona south hilo um but yeah you’re
not gonna you know is it gonna be 400
000 in a year or two you don’t no way
so but then but then it’s a
it’s also just the ratio thing right i
mean something that appreciates ten
percent over five years or whatever
that’s worth a million bucks is is
that’s a hundred thousand bucks if it’s
you know two hundred thousand dollars
it’s going to be you know a lot the
ratio is going to be a lot smaller so
that’s
it sometimes it feels like it’s not
appreciated as fast but it’s because the
raw dollar amount doesn’t seem as large
when you’re looking at a high value
property versus a low value property
excellent you know uh we got a we have
scott you you want to add something yeah
one real quick thing is is back there in
2008
during that crash what i noticed was the
urban core and from an occupancy rental
occupancy standpoint so performance just
consistency and performance the urban
core on oahu always performs the most
consistent you’ll have a little bit of
more volatility the the further out you
get on oahu so for example oahu own or
urban core only
dropped about five percent in price
during that downturn
and eva
dropped about 25 in price um and the
reason being is because there were a lot
of 100 financing
uh loans that were done out in that
section so there you do get a little
more volatility the further out you get
from the urban core but overall
performance over over the time it is
consistent