Alaeloa: Market Update November 2021

Posted by Courtney M. Brown on Friday, November 19th, 2021 at 3:42pm.

Alaeloa: Napili, Maui, Market Update

Alaeloa Maui

Alaeloa is truly one of my favorite properties and one of Maui's hidden gems...an enclave of just 42 single and duplex residences on 13 acres, this private, gated community is situated on a private oceanfront cove in Napili.  Through a large mango grove there is direct access to a crescent beach and the surf break at Little Makaha.  Overlooking the bay, there is a recreation area for owners including a large heated saline pool, a Pavilion with kitchen, bathrooms and showers, and kayak storage. 

Alaeloa Real Estate Market Overview for 2021

Current Listings*: 1 Pending
Price Range: $1,295,000 Leasehold
Sales YTD:  6
Sales Range: $1,175,000 to $3,500,000 Leasehold
Sales Volume: $12,705,000
Average Sales Price: $2,117,500 Leasehold

VIEW ALAELOA SALES

Status Unit List Price Sold Price Close Date Beds Baths Liv-SF DOM $/Sq. Ft. MLS # Tenure
PENDING 3 $1,275,000     2 2 1,128 95 $1,130 392670 Leasehold
SLD 30 $2,100,000 $2,150,000 2/16/21 2 2 1,400 50 $1,536 389787 Leasehold
SLD 29 $1,980,000 $1,930,000 4/1/21 2 2 1,368 38 $1,411 390478 Leasehold
SLD 44 $1,175,000 $1,175,000 7/2/21 2 2 1,128 45 $1,042 392203 Leasehold
SLD 23 $2,750,000 $2,750,000 7/9/21 3 2 1,276 53 $2,155 391530 Leasehold
SLD 6 $1,200,000 $1,200,000 7/30/21 2 2 1,430 301 $839 389337 Leasehold
SLD 9 $3,500,000 $3,500,000 10/15/21 4 4 4,000 162 $875 391392 Leasehold


Sales in 2021 have picked up dramatically at Alaeloa over 2020, as they did with most all of the markets on Maui.  However, it should be noted that with such a limited number of units, the low sales in 2020 and 2019 may be indicative of supply vs. demand. Alaeloa saw quite a bit of turnover in 2016, and then modest turnover (approximately 5% of the community) in 2017, 2018, and 2020. 

As Alaeloa offers both oceanfront and ocean view condominium residences, as well single units and duplexes, there is a broad variation in values.  This year, the high oceanfront sale was Alaeloa 23, which closed at $2,750,000.  Alaeloa #9 is a record high sale, however, it is unusual in that the property has its own gated entrance and had a considerably larger floor plan than we typically see.    Alaeloa offers the feeling of a private home, with condominiumized grounds, which is attractive to buyers seeking the privacy of a home and the ease of maintenance of a condominium.    

How does 2021 compare to prior years?

ALAELOA 2021 2020 2019 2018 2017 2016
Sales Volume $12,705,000 $3,625,000 0 $3,225,000 $4,885,000 $5,397,799
Number of Sales 6 2 0 2 3 6
Low Sales Price $1,175,000 $1,225,000 NA $875,000 $690,000 $610,299
Average Sales Price $2,117,500 $1,812,500 NA $1,612,500 $1,628,333 $899,633
High Sales Price $3,500,000 $2,400,000 NA $2,350,000 $2,195,000 $1,875,000
Average SP/Sq. Ft. $1,310 $1,108 NA $1,264 1044 $648
Average DOM 108 39.5 NA 48 163 113

What is the Leasehold Agreement at Alaeloa?

A leasehold interest is created when the owner of a property enters into an agreement to lease the property for a specified period of time. As the purchaser of a leasehold property, you are acquiring the right to occupy and use the leased property for a specified period of time stated in the lease agreement. 

The Alaeloa leasehold estate was created in 1965 and runs to December 31, 2059. Ground leases are determined every ten years by the appraised value of the property as if it were unencumbered and there were no improvements on the property. The Alaeloa lease stipulates that ground rents are determined by the agreed-upon appraised value times a specified interest rate or the then prevailing rate of similar properties similarly located. 

Ground leases will be established from 2020 through 2024, 2025 through 2034, 2035 through 2044, and 2045 through 2059. Most leases contain a surrender clause that states that the land and improvements revert back to the landowner at the expiration of the lease and there is no guarantee that a leasehold property will not revert unless agreed upon and advertised as Leasehold-Fee Available. However, some Lessors are negotiating with Lessees to extend the leases and in some cases we are seeing leasehold properties being converted to fee simple ownership, meaning in a condominium you own the unit as well as a percentage interest in the fee (land) and its improvements.  

We recommend purchasers of leasehold property seek legal counsel to review the ground lease agreements and leasehold documents.  Read More about Purchasing Leasehold Property in Hawaii

Are short term rentals allowed at Alaeloa?

As of the date of this post, short term rentals are allowed per the CC&Rs and the County of Maui's ordinance 4369. Alaeloa has a longstanding rental policy with a minimum of a 30 day rental (or no more than one rental per 30 day period).  Read more

*All data above is taken from the MLS at the time of this post.  Alaeloa is a leasehold property.

ALAELOA CONDOS FOR SALE

1 Properties Found. Page 1 of 1

The Best Description Is Tranquil. Alaeloa With ...

Photo of Listing #392670

$1,275,000 Pending - Cont. To Show Leasehold

  • 2 Beds
  • 2 Baths
  • 13.36 Acres
  • 1,128 ft²

Condominium

20 Hui I Rd 3, Napili/kahana/honokowai, Hawaii

MLS® #392670

Listed By: Berkshire Hathaway Maui Prop-L

The Best Description Is Tranquil. Alaeloa With Its Unique 13+ Acres Of Exceptionally Maintained Grounds And Peaceful Setting Among The Tropical Plants And Fruit Trees Is Truly One Of A Kind. This Two Bedroom / Two Bath Unit Has Been Attractively Upgraded Wi...

Courtney M. Brown, R(S) & Team
Vice President
Island Sotheby's International Realty

 

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