It’s all about economics. When demand outweighs supply, prices go up. That is exactly what is happening in the luxury real estate market. For the first six months of this year, the number of single family homes that sold at prices of $1 million or higher increased by 35 percent compared to the same period last year. The number of condominiums sold over $1 million increased by 24 percent.

Strong demand for properties in the luxury range continues. We have been tracking the neighborhoods which have been dominant in the luxury price ranges. But this year there are new neighborhoods recording sales over $1 million, and in some cases, at a higher rate than the traditional neighborhoods such as Kahala, Diamond Head, Portlock and Koko Kai, Waialae Iki, Hawaii Loa Ridge and Kailua.

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This year the top neighborhoods are Kailua, Kahala, Diamond Head and Waialae Iki. The emerging neighborhoods for single-family homes in this price range are Manoa, Wilhelmina, Kaimuki, and Mililani Mauka. For condominiums Kakaako, Waikiki, Ko Olina, and Ala Moana are neighborhoods with sales at or above the same levels as some of our traditional luxury neighborhoods.

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For market information on all price points, check out our latest Market Update.