Hawaii Real Esate: Luxury Condo Development Cancelled, But Real Estate Cycle Continues

In Honolulu's Kakaako neighborhood, which is a growing community owned by Kamehameha Schools has a planned luxury condominium tower on a two three-acre site. But this might not be developed during the real estate cycle boom. Yet, this plan of cancellation the condo doesn't mean that the recent boom cycle is about to end, Pacific Business News reported.

It was confirmed by Hawaii development firms Kobayashi Group and The MacNaughton Group that plans to build the Vida 888 Ala Moana luxury high-rise condominium project as well as the development a neighboring parcel will be cancelled. The reason for such action is due to slow sales in the recent months. The developers also canceled the contract with landowner Kamehameha Schools for the purchase of the two lots which is about six acres in Kakaako.

Aside from Vida, the development of the block near it will also be cancelled. The two firms who were supposed to work on the condo has already high-end projects which includes Hokua that was built during the last cycle and those that are currently being constructed, the ONE Ala Moana, and Park Lane Ala Moana.

“Vida was an awesome project and typical of the thoughtful kind of development that I have enjoyed from [The MacNaughton Group and Kobayashi Group]," said Trevor Benn, president of Honolulu-based Benn Pacific Group Inc. “However, I think that its price points had too much similar inventory and options for a somewhat narrow buyer profile.”

Vida is priced from nearly $1 million to $20 million. It would have 262 units in a 39-story tower on a 3.4 acres lot, The Lebanon Daily Record reported.

The competition in the luxury market of Honolulu is tough especially that Texas-based developer The Howard Hughes Corp. is building two luxury towers in the Kakaako area and will also build two more to replace the Ward Warehouse retail center.

Aside from that, another developer, OliverMcMillan’s Symphony Honolulu of San Diego is also building a luxury condo tower near the Neal S. Blaisdell Center which added to the competition.