While working with clients, I am often asked, "who are the buyers purchasing in the resort areas on the Big Island?" The word “luxury” is commonly used to describe real estate, but what price point do you use to help define luxury? I thought it would be interesting to share statistics about properties which have sold on the Big Island valued at $5M+ over the past three years.
Hales At Kealaula, Hualalai Resort Sold June 2013, Sold by Hawaii Life Real Estate Brokers
Big Island Properties Sold ($5M+)
According to Hawaii’s Information Service (MLS), the following information is in regards to the number of Big Island properties sold between January 2011 to YTD 2014 priced $5M+ and the buyer’s origin. The Big Island experienced a total of 60 real estate transactions valued at $5M+ within the following communities:
- 33 Kukio / Maniniowali / Kaupulehu
- 20 Hualalai Resort Community
- 4 49 Black Sand / Mauna Lani Cape
- 3 Puako and land adjacent
In regards to the origins of these buyers, it is probably of no surprise that:
- 47% California - 75% of the California buyers live in the San Francisco Bay Area
- 22% Western States; Washington, Arizona, Hawaii, and Oregon
- 15% Eastern States; Georgia, New Jersey, and Washington DC
- 10% International; Canada, Japan, and Australia
- 6% Central State; Colorado, Texas, and Iowa
What Do High-End Buyers Want?
The Big Island continues to attract buyers who place high importance on family, fitness, recreation, aesthetic quality, and service.
The Big Island Provides a Perfect Environment for Family, Fitness, and Recreation
Dwell Insight Group conducted a 2013 New Face of The Affluence Survey that concludes “even the highest earners seek simplicity, balance; while social status is not a concern.” Dwell Insight describes these buyers as informed, involved, independent thinkers who are design savvy discerning consumers.
According to MC Marketing Charts, more than 9 in 10 luxury buyers search for information prior to making a purchase, according to a study conducted by Google and Ipsos across 9 markets. The report concludes that the second-most common way of finding information offline is also through the media while print ads (in newspapers or magazines) are next.
Simplicity and Balance, Live the Hawaii Life | Big Island-Hawaii
Understanding the Luxury Consumer
As a real estate broker who strives to provide my clients with exceptional service, I find that it is tremendously beneficial for me to understand the ever-changing culture of the luxury consumer. In-depth knowledge enables me to tailor my level of service so that I may exceed my client’s expectations. Such information plays a key role in my marketing strategy to help maximize exposure within the right target market.
For more information about my real estate services, please contact Carrie Nicholson, BIC.