Big Island Real Estate Market

For over five years, the real estate market in Hawaii has boomed (see Bank of Hawaii Report page). The driving forces are the swelling of the Baby Boomer population influx, and the rise in mainland tourist traffic (up 17% in 2005). The discovery of Hawaii by such notables as Michael O'Dell, founder of Dell Computer; Paul Allen, co-founder of Microsoft; Donald Trump; Charles Schwab; movie stars and film industry professionals, golf professionals and sports figures have also put the Big Island "on the map".

These forces plus a 1.8% unemployment factor have driven lot and house prices skyward. It takes 5-10 years to develop new properties and the demand still outweighs the supply. Thus, the homes offered in the auction at Discovery Harbour of the same lot size, quality and square footage would sell for over $400,000 in the Hilo market, and for over $600,000 in the Kona market.

There are only a few planned communities on the Big Island and even fewer planned communities with golf courses.

Less than an hour away from Discovery Harbour and near Kailua-Kona, the Lyle Anderson Companies, (developers of both Troon North Resort and Desert Mountain in Scottsdale, AZ.) are building Hokulia golf resort; a golf community with 650 single residential units. Their lots start at $1-5 Million.

All the premier properties on the West side of Hawaii are selling well and are appreciating at a great pace.

The Discovery Harbour community, 65 miles south of Kona, has recently been re-discovered as the high prices in Kona and Hilo force the upper middle class and West Coast transplant "down-sizers" from the mainland to select Discovery Harbour for their "piece of paradise".

Both lot and home values in the Discovery Harbour subdivision have soared during the 2004-06 time period. (See lot and home sales graph). With current lot values ranging between $100,000 and $200,000 each. With today's cost of construction, it is impossible to replace these homes being offered in this auction with the lot size, quality, and features for less than $400,000. (see appreciation study page from Bank of Hawaii.)