Resorting to Hawaii

PHOTO BY MPHOTOI.COM

Kohanaiki

Hawaii’s stunning natural beauty, exciting culture, and penchant for luxury are altogether enhanced for members and guests among the developments and resorts that offer a one-of-a-kind island lifestyle.

Hawaii received over 9.9 million visitors in 2018, according to the state governor’s office. There is no shortage of foot traffic on the islands and more and more families are falling in love with the lifestyle and searching for a second home amongst the Aloha Spirit. A variety of developments and resorts to choose from makes the transition from vacation place to home seamless.

“There is a genuine sense of community among the members, who also love Hawaii and the island experience,” notes Chuck Cary, vice president of sales and marketing at Kohanaiki. The development on the Big Island of Hawai`i is an exclusive, high-end, invitation-only private club community. It appeals to those looking for an escape, which is easy to find on the 450 oceanfront acres. The idea of a luxurious, hassle-free experience is one that rings true for most developments and resorts in Hawaii.

“Luxury buyers are seeking opportunities to establish second home ownership that can deliver unique family experiences and ultimate gathering places – authentic communities that embrace local culture and a true turnkey lifestyle experience,” says Tina Necrason, senior vice president of Residential at Montage International. Montage Kapalua Bay, located on Maui along the waters of Namalu Bay, is an intimate 24-acre resort overlooking the bay.

Nicole Vincent, Realtor/Broker on the Kohala Coast for Coldwell Banker Island Properties, is well versed in the realm of luxury real estate, especially in developments and resorts. She notes that buyers, especially those with families, are drawn to the amenities that are offered in developments because the concierge, planned activities, fitness, golf, fine dining restaurants, and other amenities facilitate ease and convenience all within a community.

PHOTO COURTESY MONTAGE KAPALUA RESIDENCES

 Montage Residences Kapalua Bay

“The happiest clients are able to visit their homes and relax while visiting and really enjoy all the Big Island has to offer,” notes Vincent. The especially enticing elements that developments offer are the family-friendly and community-oriented aspects. “The memberships are structured for families with what is called a vertical membership, meaning the grandparents, children, and grandchildren can all be considered as members. This becomes attractive for families and extended families who vacation together,” according to Vincent. The sense of community is a crucial element that buyers and visitors expect, and it becomes obvious even after a short stay.

“The staff knows you, your likes and dislikes, the same way your family does. That personalized, high-end consistent service is a big part of why buyers know they want to be a part of a private club versus general luxury real estate,” urges Cary on Kohanaiki’s dedication to community. Similarly, Necrason, says, “there is a strong sense of camaraderie in the community through the relationships that are built as families get to know one another, whether through an owner event or shared excursion throughout the year or getting to know the resort staff.”

The luxurious amenities can certainly be a deciding factor for buyers, yet the decision can go further, beyond beach and spa access. “Ultimately, buyers seem to gel with a particular location based on the total package, despite all resorts essentially being able to claim most of the same amenity options,” says Vincent.

Kohanaiki, for example, is committed to sustainability and the conservation/preservation of the environment. “Kohanaiki is recognized as a leader in the evolution of the private club experience,” Cary says. “The planning and development of the community are centered on an environmentally sustainable infrastructure.” While amenities can capture attention, fundamentals such as this also play an important role in attracting guests and buyers.

A desire for a serene coastal experience continues to fuel the luxury market in Orange County.

Orange County, California used to be defined by citrus groves and theme parks, but has evolved into one of the nation’s premier luxury residential markets. While some prices have begun to soften, several of the region’s top agents see strength moving into 2020.

Berkshire Hathaway HomeServices California Properties’ Mariann Cordova reports luxury sales activity eased in 2019, but submits low interest rates and a fundamentally strong economy provide a counterbalance to negative sentiment generated by political uncertainty. “When people are making money, they’re spending money,” insists Cordova, who reports coastal areas like Laguna Beach and Newport Coast hold value best, followed by prestigious inland gated communities like Shady Canyon and Coto de Caza. The agent currently lists a 9,400-square-foot Mediterranean estate — the seller is former hockey superstar Teemu Selänne — in Coto de Caza for $6.9 million.

“The luxury market has suffered more than any other sector,” maintains Surterre Properties’ Chris Valli, who notes the trend began at least two years ago. He suggests the Orange County market has been impacted by the new tax laws, which effectively penalize high-value/high-tax states like California, but also reminds clients the market is experiencing a natural cycle.

“For over five years we went straight up and buyers began thinking prices were getting too high,” says Valli, who expects activity to rebound in the second half of 2020. He believes buyers waiting on the sidelines will soon enter the market and reports election years are historically active. The agent currently offers a sleek 6,500-square-foot ocean-bluff home in Laguna Beach — the charming beach town is becoming a showplace for modern residential architecture — at $13.5 million.

PHOTO COURTESY OF THE SMITH GROUP

Newport Beach, a perennially fashionable community where yacht slips are as important as driveways, remains a strong market. Coldwell Banker Residential Brokerage’s Tim Smith set the record last year for the most expensive sale on Newport Harbor, which he believes represents the quintessential luxury Orange County lifestyle — even more so than the region’s signature coastal bluffs. “There’s a connection to the ocean you experience when you live on the harbor that you can’t get anywhere else,” insists Smith, dubbing the area “Billionaires’ Bay.”

Characterizing the market as fragmented, Smith explains, “For new construction in great locations, we’re still setting records,” but acknowledges price pressures on less pristine properties. Smith currently offers a 9,609-square-foot, design-forward home in the oceanfront community of Corona del Mar for $24.995 million.

Jacqueline Thompson of Surterre Properties reports 2019 was among her best years and knows of many clients waiting to buy in 2020. “The number of international buyers, especially from China, has declined, but local money is very viable and results in many all-cash offers,” she says. Thompson concedes luxury purchasers still gravitate to the coast, and currently lists a two-estate compound on Newport Coast’s Pelican Point for $19.5 million. However, the agent closed two $11 million-plus cash transactions in Irvine’s amenity-rich Shady Canyon last year.

Orange County offers a wide range of properties, from glass-ensconced beach houses to palatial Mediterranean estates like La Casa Pacifica, listed by Compass’ Rob Giem for $57.5 million. While Thompson’s all-cash offers are illustrative, some agents insist that even super-affluent buyers can be motivated by low interest rates, choosing to put their own funds to work elsewhere. The cumulative effect of recent interest rate cuts, according to Coldwell Banker’s Smith, results in a 12-15 percent increase in purchasing power.