The Honolulu City Council has approved a planned condominium tower near Ala Moana Center, with a condition that the developer provide 101 affordable rental apartments nearby for twice as long as typically required.

The project, called 1538 Kapiolani Tower, will have 331 condo units. Under the condition approved by the council, the developer, JL Capital, will build the affordable apartments on two nearby sites. The rents for the affordable apartments must remain affordable for 60 years, which is double the standard 30-year period. The affordable apartments will be available to households earning up to 80% of the median income on Oahu.

The council’s approval of the project brings additional much-needed affordable housing to Oahu.

The Hawaiʻi Department of Transportation (HDOT) is closing the left lane on both sides of Ala Moana Boulevard between Ward Avenue and Kamakeʻe Street for 24 hours a day, 7 days a week, from Monday, July 24, 2023 to Friday, September 22, 2023. This closure is necessary to construct a pier in the median to support an elevated pedestrian walkway.

Two lanes of traffic will remain open in both directions, but motorists should expect delays. A temporary detour will be provided via Auahi Street.

The pedestrian bridge is part of a larger project to improve safety and connectivity in the Ala Moana area.

The Honolulu housing market cooled off in June, with both single-family homes and condos seeing a decline in median sales prices. The monthly median sales price for single-family homes fell 4.5% year-over-year to $1,050,000, and the median sales price for condos fell 4.5% to $510,000.

Single-Family Home Resales

Condominium Resales

Sales also slowed in June, with single-family home sales down 30.5% and condo sales down 24.9% compared to the same time last year. However, the market pace remained relatively quick, with most properties entering a contract in just over two weeks.

There are a number of factors that are contributing to the cooling of the Honolulu housing market. These include rising mortgage rates, which have made it more expensive to buy a home, and a limited supply of inventory.

Despite the cooling, the Honolulu housing market remains active. There is still strong demand for homes in the area, and most properties are selling quickly.

What does this mean for buyers and sellers?

The cooling of the Honolulu housing market is good news for buyers, as it means that there is more negotiating power and less competition. However, sellers may need to be prepared to lower their asking prices in order to sell their homes.

Overall, the Honolulu housing market is still a sellers’ market. Although the market has balanced somewhat, if you’ve been thinking about selling, now might be the time to take advantage of the current situation. It’s best to consult your realtor as each property is unique and each and neighborhood has specific trends.

If you have questions, Sachi Hawaii would be happy to help you evaluate when’s the best time for you to buy or sell. Please feel free to contact Sachi Hawaii: (808) 596-8801 | info@sachihawaii.com