02 Sep South Kauai Home Prices and the Kuku’iula Factor
The median price of a single family home on the South Side of Kauai is rising steadily to
levels last seen in 2005/2006. Some of the increase can be attributed to and weighted
towards large estate and resort homes, for example in 2014 there were 18 sales whose
prices exceeded $2 million, of which 4 sales were in the $6-7 million dollar range. In 2013
10 sales exceeded $2 million in price, in 2012 another 10 sales were over $2 million, while
in 2011 only 2 homes sold for over $2 million in price.
From 2011 to 2015, Kukui’ula home sales accounted for most of the high dollar sales with 24
sales over $2 million in price with 2 sales of $6.1 million and $7.2 million in 2014.
Kukui’ula, a project by Alexander & Baldwin Inc., planned for 1,200 homes on 1,010 acres
between Poipu and Lawai Valley on Kauai’s southern shore, has gradually rebounded since
2010 after A&B suspended sales efforts in 2009.
In a conference call earlier this month with stock market analysts, Chris Benjamin, A&B
president, says that Kukui’ula expects to complete about $40 million in home and lot sales
for the second half of the year.
A&B has increased construction to meet buyer demand, and has added a subdivision named
‘Kainani’ with 24 house lots, and a 20 unit condominium on 26 acres with ocean views.
The overall rise in the median price is at a healthier pace at 14% per year over the past 5 years
in comparison to 2001-2006 where home prices increased an average 48% per year and more than
doubled in five years before the ‘correction’ of 2007/8.