The Kobayashi Group has introduced its latest luxury, high-rise project, officially named 1588 Ala Moana. This future development has often been the talk of the luxury Hawaii real estate world, referred to as “Park Lane 2.” This ambitious mixed-use development is planned for a more than four-acre section of the Ala Moana Shopping Center’s parking lot, specifically at the prominent intersection of Atkinson and Ala Moana.

The project is designed to feature two distinct towers:

Residential Tower: This building will offer a mix of housing, including both market-rate units and designated affordable rentals. The affordable units are intended for households earning 80 percent of the area median income (AMI) and below, aiming to serve local working families.

Hotel Tower: The second tower will operate as a 291-room hotel. The design is strategically focused on attracting “higher spending visitors” to the islands.

In addition to the residential and hotel components, 1588 Ala Moana is slated to include 26,000 square feet of commercial space. Given its proximity to the Ala Moana Shopping Center and the Hawaii Convention Center, developers have indicated the project will work to support these two key visitor destinations and beautify the immediate surroundings, acting as a gateway to the area.

Entitlement and Community Process

The project is currently in the entitlement phase, a lengthy process that requires approvals from multiple city levels, including the City Council and the Department of Planning and Permitting. This comprehensive review process is anticipated to take up to a year.

During the initial presentation to the Ala Moana-Kakaako Neighborhood Board, concerns were raised regarding the development’s impact. Key issues highlighted included potential effects on parking, pedestrian crossing safety at the busy intersection, and the broader concern of ensuring current residents are not displaced by new, expensive developments. Local board representatives have emphasized the community’s recognized need for more housing.

Following its introduction to the Neighborhood Board, the project is scheduled for discussion at the City Council’s Zoning and Planning Committee hearing on Thursday, November 20. Stakeholders are encouraged to participate in the public process as the project moves through its various stages of review.

Register Your Interest in 1588 Ala Moana

For many, this is the project they’ve been waiting for. Park Lane has been one of Honolulu’s most successful ultra-luxury developments, and many have been waiting for the follow-up.

If you are interested in 1588 Ala Moana, register with Sachi Hawaii so that we may keep you informed as soon as new information is released:

Contact Sachi Hawaii:
(808) 596-8801 | info@sachihawaii.com

The Oahu real estate market concluded the third quarter with a persistent divergence between its two main sectors in September 2025. The single-family home market continued its upward trajectory, with the median sales price rising 3.8% year-over-year to $1,155,000. This consistent performance is reflected in the year-to-date figure, which shows the median sales price for single-family residences up 4.1% to $1,145,000. In contrast, the condominium market experienced a slight cooling, with its median sales price dipping 1.7% year-over-year to $508,750, and the year-to-date median edged down 1.0% to $505,000.

Single-Family Home Resales

	Number of Sales	Median Sales Price
September 2025	276   +27.2%	$1,155,000   +3.8%
September 2024	217	$1,122,722

Condominium Resales

	Number of Sales	Median Sales Price
September 2025	408   +11.5%	$508,750   -1.7%
September 2024	366	$517,500

Source: HiCentral

Buyers gained more leverage and selection as the pace of sales slowed and active inventory grew. Properties spent notably longer on the market compared to the previous year, with the median days on market for single-family homes extending to 26 days (up from 19) and for condos lengthening to 40 days (up from 31). This extended timeline corresponds with an increase in active listings; single-family inventory saw a 5.7% boost, and condo inventory recorded a more substantial 23.3% rise compared to September 2024. While new single-family listings were down 6.0% for the month, condo listings saw a marginal 1.1% bump, and both property types remain ahead in new listings year-to-date.

Despite the market’s more moderate pace, sales activity remained strong in specific segments, reflecting targeted buyer demand. The single-family home market saw significant transaction surges, particularly in the mid-range $800,000 to $899,999 bracket (up 81.0%) and the premium $1.4 to $1.59 million range (which doubled its sales volume). Approximately one in four single-family homes continued to sell above the original asking price, though this was down slightly from last year. For condos, sales activity was particularly robust at the lower end, with the $100,000 to $299,999 range more than doubling its sales volume, and the $500,000 to $599,999 range rising 63.6%. Pending single-family sales fell 11.8%, but pending condo sales saw a modest 2.5% increase, indicating varied short-term momentum across the island’s housing sectors.

Amidst Hawaii’s persistent housing crisis, state agencies administer critical programs designed to open pathways to homeownership for local residents priced out of the market. These initiatives, overseen primarily by the Hawaii Housing Finance and Development Corporation (HHFDC) and the Hawaii Community Development Authority (HCDA), offer Hawaii properties for sale at below-market prices in exchange for strict long-term commitments from buyers.

For prospective homeowners, understanding the mechanics of these programs, particularly the eligibility requirements and the mandated resale restrictions, is paramount to navigating the purchase process successfully.

Gateways to Ownership: Eligibility and Process

Hawaii’s affordable and reserved housing units are targeted exclusively at qualifying local residents. While specific rules can vary by project, the core prerequisites for applicants remain consistent:

Residency and Citizenship: Applicants must be U.S. citizens or permanent residents and must be residents of the State of Hawaii, typically verified through state tax returns.

Income Limits: Eligibility is determined by a household’s gross income relative to the Area Median Income (AMI). Most for-sale programs require households to fall within a range of 70% to 140% of the AMI.

Real Estate Prohibition: Applicants generally cannot own a majority interest in any residential property anywhere in the world. HCDA historically applied a three-year lookback period, while HHFDC’s rule is often applicable at the time of application.

First-Time Buyer Status: With few exceptions, an applicant cannot have previously purchased a property under any of the state’s affordable or reserved housing programs.

Once eligibility is established and applicants are pre-qualified by a lender, the selection process is typically executed through a public lottery. Those selected must then sign a purchase contract along with a legally binding Deed Restriction document with the state agency.

The Long-Term Commitment: Resale and Appreciation Restrictions

In exchange for purchasing the unit at a subsidized, below-market rate, the buyer must agree to two primary restrictions that remain legally attached to the property’s title: the Buyback Program and the Shared Appreciation Equity (SAE) Program.

1. The Buyback Program (Use, Sale & Transfer Restriction)

This restriction is a powerful tool designed to prevent speculative selling and ensure the unit remains occupied by a qualified resident.

Duration and Occupancy: For HHFDC units, this restriction typically lasts for 10 years. The owner must use the unit as their principal residence for the duration of this term.

Mechanism: If the owner attempts to sell, transfer title, or ceases to owner-occupy the unit during the restriction period, the state agency is granted the first option to repurchase the property.

Repurchase Price Calculation: The state’s repurchase price is strictly controlled by a set formula, typically limited to the owner’s original purchase price plus the cost of approved capital improvements and a modest annual simple interest rate (e.g., 1%). This formula ensures the owner is compensated but effectively eliminates any market-rate profit gained during the restricted term.

2. Shared Appreciation Equity (SAE) Program

The SAE mechanism is the state’s way of recouping a portion of the original subsidy, which is then reinvested into future affordable housing projects.

Duration: Unlike the Buyback restriction, the SAE obligation does not automatically expire and remains in effect until it is paid in full.

Trigger Events: Payment of the SAE is generally required when the property is sold, transferred, rented out, or is no longer used as the owner’s principal dwelling.

The Shared Percentage: At the time of the original purchase, a fixed percentage share is calculated based on the difference between the property’s market-appraised value and the lower, affordable sales price. The owner must pay the state that predetermined percentage of the unit’s net appreciation upon the sale or transfer of the property.

These programs represent a calculated trade-off: deeply subsidized purchase prices for a limited owner and a share of future profits. For Hawaii’s working families, this system offers a crucial, though highly restricted, entry point into the challenging reality of homeownership in the islands.