The Oahu real estate market displayed a notable split in performance this November, as single-family home sales surged while the condominium sector experienced a cooling period. According to the latest resale figures from the Honolulu Board of REALTORS®, single-family home transactions jumped 18.7% year-over-year, reaching 241 closings. Conversely, the condominium market saw a 7.3% decline in volume, with sales dipping to 316 units. This divergence highlights a shifting landscape where buyer interest remains robust for detached homes, particularly in the mid-to-high-end price brackets.

Single-Family Home Resales

Condominium Resales

Pricing for both property types saw slight downward adjustments compared to the previous year. The median sales price for a single-family home settled at $1,100,000, a modest 1.3% decrease from November 2024. The condominium market felt a more pronounced impact, with the median price dropping 8% to $487,450. This shift in the condo median was largely driven by a 22.4% decrease in sales of units priced above $500,000, while activity remained brisk for more affordable units in the $100,000 to $400,000 range.

Inventory levels and market velocity also reflected these changing conditions. While active inventory for single-family homes tightened by 3.3%, the supply of available condominiums rose by 11.5% to 2,284 units. Properties are taking slightly longer to sell, with single-family homes averaging 27 days on the market and condos reaching 40 days. Despite the slower pace, pending sales for both sectors showed an upward trend, suggesting that buyer demand is holding steady as we move toward the end of the year, particularly in regions like Central Oahu and Waipahu.

Reflecting on these market dynamics, Moe Matsuda, Vice President and Broker-in-Charge at Sachi Hawaii, notes that the current environment offers unique opportunities for both sides of the transaction. “While the increase in single-family home sales demonstrates a resilient appetite for Oahu real estate, the rising inventory in the condo market is providing buyers with much-needed leverage and selection,” said Matsuda. “As we transition into the new year, navigating these specific price pockets and inventory shifts will be the key to success for our clients.”

The City and County of Honolulu has selected the Kobayashi Group to develop a major affordable rental project on 14 acres of city-owned land in Kapolei. Located between Wakea Street and Kamokila Boulevard, the development is slated to provide approximately 750 new units for local families. This initiative stands as one of the most significant affordable housing efforts on Oahu, aimed at addressing the island’s critical housing shortage.

The project will follow the successful model of the adjacent Parkway Village, another Kobayashi Group development that recently began welcoming residents. By leveraging the Governor’s Tenth Proclamation Related to Affordable Housing, the City intends to streamline the development process to deliver these units with urgency. Mayor Rick Blangiardi emphasized that the project is designed to be more than just housing, aiming to create a transit-oriented community where kama’aina can thrive.

The Kobayashi Group and the City are now entering an exclusive negotiation period to finalize pre-development contracts. As Kapolei continues its growth as Oahu’s “Second City,” this 750-unit expansion represents a cornerstone in the state’s long-term strategy to provide high-quality, sustainable rental options for residents across various income levels.

Alexander & Baldwin, Inc. (A&B), a premier Hawaii-based owner, operator, and developer of commercial and residential real estate projects, has entered into a definitive merger agreement to be acquired by a joint venture formed by MW Group, funds affiliated with Blackstone Real Estate, and DivcoWest (collectively, the “Investor Group”). The all-cash transaction values all outstanding A&B common shares at $21.20 per share, representing an enterprise value of approximately $2.3 billion, which includes outstanding debt. This transaction, unanimously approved by the A&B Board of Directors, will result in A&B transitioning from a publicly traded entity to a private company.

A&B is recognized as the largest owner of high-quality, grocery-anchored shopping centers across Hawaii. The company’s diverse portfolio spans approximately 4 million square feet of commercial space. This includes 21 retail centers, 14 industrial assets, four office properties, and fee interests in 146 acres of ground lease assets, positioning the company as a major supporter of local communities and residents’ daily lives. A&B also developed notable residential projects in Honolulu including Keola Lai, The Collection, and Waihonua.

The acquisition offers significant value to A&B shareholders, delivering a substantial 40% premium over the closing stock price prior to the announcement. As a private entity, A&B will be supported by the extensive real estate expertise of the Investor Group, which is poised to enhance the company’s capacity to serve its tenants and communities. The new ownership has committed to investing over $100 million across the existing portfolio to enhance the properties and reinforce their essential role in the communities they serve.

Crucially for the local market, the company’s strong local focus will be maintained. A&B will retain its name, brand, and Honolulu headquarters, and will continue to be led by its Hawaii-based team. The Investor Group aligns with A&B’s long-term vision of operating as stewards of Hawaii’s commercial real estate, maintaining the company’s legacy as dedicated partners for the islands. The transaction is subject to customary closing conditions, including shareholder approval, and is anticipated to be completed in the first quarter of 2026.