While Puamana prices have steadily been on the rise, real estate sales volume has gone a bit quiet at Lahaina’s “gold coast of gem neighborhood” on the south end of Front Street. What looked as an overly promising start of the year has stalled a bit by average standards as for the 4th consecutive month, Puamana closes with no sales and only 1 unit in escrow.
Sunrise Spectacular
What Has Happened?
Over the past 20 years, Puamana has seen an average of 11 transactions per year – volume for 2016 currently sits at 8. Currently, there are 10 active properties on the market (2 oceanfront)…So with all of the inventory, why no current sales, you ask? Plainly put, it’s been m-a-j-o-r property appreciation. I’m serious, Puamana has been HOT…very HOT in fact. In just the past year, from 2015-2016, there has been another 11% gain. Take a closer look.
Puamana: possibly the prettiest grounds in all of West Maui
1-Bedroom Non-Oceanfront Units
Year 2011 – Avg sales price was $460K (5 sold)
Year 2016 – Avg sales price $751K (4 sold)
63% – Increase in average sales price between 2011 & 2016
$860K – Avg list price of the (2) currently listed
15% – Increase in 2016 sold price and list price of units currently listed (for those of you that are counting, that’s an 87% increase in a 5-year period. Yes, that’s an “8” followed by a “7”)
Prices values for Non Oceanfront units are back to a near all time high
2-Bedroom Non-Oceanfront Units
Year 2011 – Avg sales price was $640K (4 sold)
Year 2016 – Avg sales price $882K (2 sold)
37% – Increase in average sales price between 2011 & 2016
$910K – Avg list price of the (5) currently listed
Most of Puamana’s 60 buildings & 231 units are not oceanfront
Why I Use Non-Oceanfront Units
In my opinion, using non-oceanfront gives you a better overall indicator of the quality of the whole versus one particular unit or one particular location. I mean, let’s face it: oceanfront at Puamana will always be oceanfront. The dirt is worth what it is regardless of the unit’s condition. As below illustrates…the cost is higher, it’s stable, and doesn’t fluctuate sharply as a backline or midline property as much of the value is weighted on the water’s edge (do I need say: location, location, location).
Puamana Oceanfront Price Per Square Foot
Non-oceanfront units play more of a “real property comparison” game…they more evenly blend all of the general and common factors that all of the neighborhood benefits from, and also, all of the external factors the neighborhood could be exposed to (pools, tennis, maintenance, highway road noise). They do this without the inflated premium of oceanfront location to skew the statistics.
While all buildings are oceanfront, each unit is within very close proximity to the water’s edge
Some buildings/units in Puamana are affected from the road noise of Hwy 30
10 active properties currently listed on the market, which is a higher number for Puamana
