A Sign of What's to Come? Vida gets Zapped!

By
Real Estate Agent with HI Pro Realty LLC RB-21531 RS-76763
https://activerain.com/droplet/4N9R

 

TOO MANY PROJECTS + HIGH CONSTRUCTION COSTS = OVER-SATURATION 

There has been talk for months of the over-saturation of new developments in the Luxury Market. With dozens of Condo projects in pre-sales and with construction costs at an all time high, competition has been fierce for the cash and carry crowd in the Honolulu Luxury Real Estate market.

 

Vida is the first casualty of the current round of Luxury Developments to make headlines as it cancels it's buyers contracts and shelves it's plans to develop the 888 Ala Moana address into an Ultra-Luxury Complex overlooking Kewalo harbor in the Kaka'ako neighborhood of Honolulu.

 

 

 

 

The Developers for the project, The MacNaughton and Kobayashi Groups, have cited the lack of sales and sky rocketing construction costs as the reasoning behind the cancellation. The sales office for Vida opened over a year ago and despite marketing efforts the project was only 40% sold when the developers decided to shelve the project this past week.

 

The 38-story Vida tower was to include 265, 2 and 3 bedroom units designed by Los Angeles-based Arquitectonica and Honolulu-based Ben Woo Architects.

 

 

Click Here for floor plans and additional information

 

Pricing ranged from the low $900,000 to $4.7 million for units with about 1,500 square feet to 1,890 square feet of living space. Vida was part of the Kamehameha Schools master plan called Our Kaka‘ako. There have been no new plans announced for the address as of yet.

 

 

 

 

 

 

 

A Sign of What's to Come? Vida gets Zapped!

Posted by

 HI Pro Realty - PET FRIENDLY HONOLULU REALTOR, PROPERTY MANAGEMENT

 

HI Pro Realty LLC - REALTORS®, PROPERTY MANAGERS® is a boutique brokerage firm offering responsive, dedicated, and professional Real Estate Sales and Management Services in Honolulu, Hawaii. 

 

 

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Rainmaker
1,542,335
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Kimo Stowell Could it be that the financial experts are seeing something in the trending scope that others do not? We are all the little guys and just have to keep working by selling the available inventory.

Jan 25, 2016 05:13 AM #1
Ambassador
2,860,169
Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

Kimo that is sounding a lot like what happened in my area back in 07 - 09. A lot of new developments went off the grid and are just now starting to come back. How does it effect your market sales? 

Jan 25, 2016 05:27 AM #2
Ambassador
3,868,664
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Aloha Kimo- I wonder if other markets are seeing something similar. 

Jan 25, 2016 05:50 AM #3
Rainmaker
4,442,110
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Kimo,

Interesting report, we saw some of that happening in Las Vegas a few years ago. You should see San Francisco, everywhere you looks there is a crane and a huge condo project rising...Are we running out of people to fill them?  Given that your area has had an influx of foreign buyers, could the value of the diminishing  yuan be the reason?  A

Jan 25, 2016 06:12 AM #4
Ambassador
2,758,551
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning Kimo. That is an interesting report. I'm just wondering how the high rises that are being built in our area are going to fare. I don't see the supply meeting the demand.

Jan 25, 2016 05:40 PM #5
Ambassador
1,850,388
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

It's quite a conundrum - we need affordable housing everywhere, Kimo. But, you're right builders want to get the most bang for their buck and this is what they opt to do. Hoping this won't have a negative effect on  your business Kimo. 

Jan 26, 2016 07:09 AM #6
Rainmaker
3,332,282
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Aloha, Kimo -- thanks for sharing the information as your market is definitely geared towards the higher end and it can be an indicator of what may happen stateside.  

Jan 27, 2016 07:21 AM #7
Rainmaker
600,004
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

Let's not think that an over-supply of luxury housing is replicated in the more affordable sections of the market, correct?  However, serving the downmarket needs may not yield the same return to the investors.

You'd think within a few short years, this land will have been developed into this, or some other incarnation.

Jan 27, 2016 01:51 PM #8
Rainmaker
2,017,319
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Kimo Stowell 

This would make an excellent documentary and a series too! It's definitely something to pay attention to because they say history repeats itself. However, my concern is, we are in a global market. We are used to being on our own islands (not just the Hawaiian Islands). The impact of the Asian economy has a direct impact on the Islands of Hawaii with a domino effect from sea to shining sea. This is not an isolated case. There needs an almost immediate business plan, preemptive and strategic planning that works. 

Jan 27, 2016 08:00 PM #9
Rainmaker
2,112,237
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Wow that really sucks for the people who did purchase....what happens to them?

Jan 29, 2016 01:36 AM #10
Rainmaker
5,379,108
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for sharing this information. It is sad when major plans need to be cancelled.

Jan 30, 2016 12:23 AM #11
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Kimo Stowell

REALTOR Associate® RS-76763 - Honolulu Hawai'i
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