Home Buying in 96707>Question Details

Robert Weins…, Home Buyer in Kapolei, HI

When the new Kapolei Mall is finally built, do you anticipate all the house prices to jump significantly?

Asked by Robert Weinstock, Kapolei, HI Fri Jun 28, 2013

Is there anything else that may cause a surge in house prices in Kapolei?

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Kapolei and Ewa Beach are both extremely desirable locations right now and for the foreseeable future. Not only is the new mall, Ka Makana Ali'i, moving in soon but it will be the 3rd largest mall on Oahu and the newest mall built in over 30 years. In addition, we have the rail coming which is planned to start feet from the mall and the new branch of the University of Oahu right down the road as well.

With so much well-thought out growth combined with the beauty and friendliness of the location, I think Kapolei will see a steady increase in value.

Catherine Pierce
A House-SOLD Name!
808-352-0231
0 votes Thank Flag Link Wed Jul 10, 2013
What a great response! Thank you for taking the time to write such a great post. I can't wait to watch both of these towns explode in the foreseeable future.
Flag Sat Jul 13, 2013
Aloha Robert,

Yes, I am in agreement with Arlene and Catherine. There are already significant economic drivers in effect in the Kapolei / Ewaplain region that leads me to the expectation of continued appreciation in the next 2-3 years, regardless of whether or not a mall is ever constructed.

It is not likely that home prices will "jump significantly" as the project will be built slowly over time. As the mall complex goes up and nears completion I think it would be natural to expect the real estate development and market values in the surrounding areas to see some positive gains as well, though market values are affected by a wide variety of factors, of course, so none of us can know for sure.

Certainly, adding such a significant landmark as the Ka Makana Ali'i mall by renowned DeBartolo Development to this area only serves to bring a heightened awareness to both Oahu residents and out-of-area investors alike that Kapolei truly is fast-becoming the "Second City" everyone said it would become. The mall, and other businesses that will open in Kapolei in coming years, will add hundreds of jobs and keep a lot more money in Kapolei, rather than having it spent at Ala Moana and Pearlridge, the two largest malls on Oahu, respectively.

I attended the meeting in Kapolei last week (Nov. 14, 2013) with the DeBartolo representatives, the Dept. of Hawaiian Homelands (DHHL) commissioners and about 120+ residents of the surrounding communities. You can read about some of it on my Twitter feed (@MunroMurdock) or by searching Twitter with the hashtag #KaMakanaAli'i as that is what I added to most of my posts during the meeting.

I listened to over two hours of testimony and discussion regarding this project and whether or not the DHHL commissioners should grant DeBartolo the one year lease extension they were seeking. You can read about the meeting and the outcome from it here: http://dhhl.hawaii.gov/2013/11/14/debartolo-kapolei-mall-pro…

"Beneficiaries" (home owners on leasehold DHHL land) in surrounding Hawaiian Homelands communities were able to negotiate a 'benefits package' with the developer valued at approximately $5.5M during the first 25 years of the mall's operation. Essentially, they are to receive 4% of the gross rental proceeds paid by all of the mall's tenants. These funds will be transferred to DHHL monthly and set aside for use by these DHHL communities and their residents. Pretty interesting and I'm sure all of them are happy about this project now, even if they weren't before.

Interestingly enough, probably about 95% of those residents who took advantage of the opportunity to share 1 1/2 to 2 minutes of testimony spoke out in favor of this project, speaking to the many financial benefits and local conveniences that will be provided Kapolei residents as well as those who live in neighboring communities. While there will certainly be a traffic and busy-ness aspect that will come to the area as a side effect of a project of this size, the residents felt that the benefits of this mall coming in far outweighed any potential downsides. It could be argued that their support of it was partially financially motivated, if they happen to live in one of these communities that will be receiving a portion of the gross rents.

At any rate, I am in favor of this project being built as I feel it is ideally suited for the long-term vision of Kapolei's Urban Design Plan.

I hope you are able to see the appreciation gains in your home value you are hoping for in the coming years and when the opportune time comes to sell or to make another move I would be happy to assist you.

Aloha,
Munro
808-492-6242

#LiveLoveHawaii
0 votes Thank Flag Link Thu Nov 21, 2013
Yes, Kapolei has become the happening place with more businesses and jobs, so housing demands have increased and in turn, prices are rising. I believe the new mall will also increase home values. I hope this helps.
0 votes Thank Flag Link Sat Jun 29, 2013
Arlene,
Thanks for the quick response. We just bought our house a few short months ago and have significantly upgraded a house that was already in great shape. Hopefully after the mall comes it will cause a further spike and force me to see, (at a significant profit) :)
Flag Sat Jun 29, 2013
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