South Maui Real Estate: December 7th

Market Overview: A Distinct Shift in Leverage

The South Maui market has officially transitioned into a buyer-favorable landscape, particularly in the condo sector. The dominant trends are a significant increase in inventory and widespread price reductions, creating a dichotomy between the slowing condo market and the still-active ultra-luxury segment.

• Inventory Surge: Active listings have risen sharply across Kihei and Wailea, offering buyers more choices than they have had in years. This oversupply is most acute in the vacation rental condo sector, where legislative uncertainty (Bill 9) has prompted many owners to exit the market.

• Price Reductions: Sellers are adjusting to the new reality. We are seeing frequent price cuts as days-on-market stretch longer. The "aspirational pricing" of 2022–2024 is being replaced by motivated pricing to secure deals before the year ends.

High-End Spotlight: Ultra-Luxury Remains Resilient

Despite the broader market softening, the ultra-luxury market continues to move for premier assets.

• 1750 Halama Street (Under Contract): In a major signal of high-end strength, the direct oceanfront estate at 1750 Halama Street, listed for $16,800,000, has gone under contract.

  • The Property: A stunning 4-bedroom, 5.5-bath contemporary estate built in 2013, set on a 0.4-acre lot with 75 feet of ocean frontage.

  • Significance: This quick activity (having only been listed in late November 2025) demonstrates that while the general market cools, cash-heavy buyers are still aggressively pursuing "trophy" properties on Maui’s most coveted streets.

Deal of the Month: The "Double Unit" Fire Sale at Maui Banyan

The softening condo market has produced one of the most eye-opening comparable sales of the year, confirming that aggressive deals are happening.

• Maui Banyan Units G204/206 (Closed at $815,000): This transaction is a prime example of the price correction.

  • The Unit: A unique "double unit" configuration where the owner physically combined a 1-bedroom unit (665 sq. ft.) and a 2-bedroom unit (900 sq. ft.) into a massive 1,550 sq. ft. residence.

  • The Numbers: Originally listed as high as $1.299M, it was reduced to $1.049M and finally closed on November 28, 2025, for just $815,000.

  • Why it Matters: At roughly $525 per square foot, this sale represents a massive discount for fee-simple vacation rental condos in South Kihei, which typically trade much higher. It highlights how motivated sellers are accepting deep discounts to liquidate unique or complex assets in this high-inventory environment.

Summary Takeaway

South Maui is currently a bifurcated market. Luxury single-family homes (like Halama St) are still commanding attention and high prices, while the condo market (like Maui Banyan) is offering rare windows of opportunity for buyers to snag deals at significantly reduced prices amidst rising inventory.

December 7, 2025.pdf

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Thank you for taking the time to read these reports. I will be off island celebrating the holidays with my wife's family. I don't anticipate too much happening with exception to the second reading of Bill 9 on December 15th. If I have internet connections, I will do my best to keep you updated. If I can't, I hope you all have a great time with family and friends during the upcoming holidays. "See" you in the new year.

Aloha,

Ken