Would You Live In Kalihi?
When you think of Kalihi, what comes to mind? I bet "real estate" might not be on the top of your list.
According the Honolulu Board of REALTORS' September 2016 Local Market Update, the median condo price in the Kalihi - Palama area (TMK: 1-1-2 to 1-1-7) appreciated 43%, to $444,000, from the same time last year.
In addition, there was a 100% increase of closed condo sales in the Kalihi - Palama area (comparing September 2016 to September 2015). Of the 12 Kalihi - Palama condos that sold in September 2016:
- 3 units were from Honolulu Tower
- 3 units were from Honolulu Park Place
- 1 unit from 215 North King Street
- 1 unit from Nuuanu Terrace
- 1 unit from Liliha Square
- 1 unit from Olu Hale Kanoa
- 1 unit from Kapalama Uka
- 1 unit from 1260 Richard Lane
According to the MLS:
- 9 units were financed by conventional loans
- 2 units were all cash deals
- 1 buyer used a VA Loan.
Despite the negative stigmas of Kalihi - Palama, the housing market still remains very competitive. "Days on market until sale" decreased 36%, from 11 days to 7 days. That is, listings are not sitting on the market.
Why are people flocking to Kalihi - Palama? Could it can be the resurgence of Chinatown and Downtown?
With only so much buildable space in metro Honolulu, I wonder if Kalihi - Palama will be the next Kaka'ako. Until recently, Kaka'ako was an industrial area. Now, Kaka'ako is the home to Honolulu's most luxurious condos.
There's been discussions about the revitalization of Kalihi. Similar to early Kaka'ako, Kalihi lacks the proper infrastructure to build more housing. It'll be interesting to see where Kalihi heads in the near future.