Pacific Business News Web Editor James Prichard takes a closer look at the jump in the median price of condominiums sold in the Ala Moana-Kakaako area last month, April 2016:
A 19.8 percent jump in the median price of condominiums sold in the Ala Moana-Kakaako area last month was primarily responsible for the overall condo median selling price on Oahu surging to a record-high level, according to data from the Honolulu Board of Realtors.
The median selling price of a condo in the Ala Moana-Kakaako area rose to $590,000 in April, up from $492,500 in the same month last year. An average seller received 99.2 percent of the original asking price.
Median prices for condominiums also rose significantly in the Pearl City-Aiea area, to $369,444 from $313,000, an 18 percent increase, and in the Makiki-Moiliili area, to $380,000 from $325,000, up 16.9 percent.
The median selling price for condos islandwide on Oahu in April was $389,500, a 5.1 percent increase from $370,475 in April 2015. The previous record of $386,250 was set in December.
“Even with the increase of new construction in Kakaako, demand is still stronger than supply,” board President Kalama Kim said in a statement Wednesday. “The hope is that the new condo units coming on to the market in the next few years will alleviate the inventory crisis. This is an example of why new housing inventory at all price levels is so desperately needed. Many areas across Oahu need additional housing.”