Posted
by Courtney M. Brown
on Friday, November 19th, 2021 at 3:42pm.
Alaeloa: Napili, Maui, Market Update
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
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.
Listed By: Real Broker LLC Office Contact: hawaiisbest1@gmail.com
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