Hawaii’s land market is complex, requiring expert guidance and in-depth knowledge of zoning and local demand factors. With proper valuation strategies and a clear understanding of land investment potential, investors can make informed purchasing and selling decisions.
The average price of a single acre of land in Hawaii is $300,000 to $700,000 depending on the island and location. Coastal lands and properties zoned for commercial purposes are more expensive. Land near popular attractions such as beaches and golf courses is also in high demand.
Strict zoning laws and limited land supply drive up land prices in Hawaii. Despite these challenges, investing in land can be lucrative if you choose wisely and follow a prudent strategy.
Considering the state’s booming economy, tourism projections and growing global wealth, land ownership is one of the best property investments for long-term appreciation in Hawaii. However, owning raw Hawaiian land requires substantial capital, patience and infrastructure establishment to optimize potential. It’s also important to research permit requirements and model project budgets thoroughly to avoid costly mistakes.
A wide range of buyers Hawaii Land Deals – Land Boss pursue real estate in Hawaii including millionaires, developers and offshore investors. Across the state, demand for residential development and tourist accommodation far exceeds a finite land inventory, driving per acre pricing to record levels. Agriculturally zoned land is valued for its capacity to cultivate tropical crops and graze livestock, but it’s also essential to understand how these competing priorities influence local land values.
Assessing Land Values
Valuing Hawaii land is complicated by a wide array of variables including zoning, demand and buyer motivation. Tracking land sales and comparing data year-over-year provides critical clues about market liquidity, demand dynamics and pricing trends.
When assessing a property’s value, many appraisers use a method called percentage of improved value. This approach assumes a property’s value will be increased by adding a structure or other improvements, such as a driveway, fence and pool. However, this is just one of many methods available, and it’s always advisable to consult an experienced appraiser who can provide in-depth analysis of the property’s unique attributes and local land sales.
Although most residents in Waimea acknowledge Salesforce CEO Marc Benioff is behind the 22 purchased acres, most say he has not spoken with them and intends to keep his plans private. Some speculate he’ll build an office or training center for Salesforce engineers, while others believe he’s aiming to create a community of sustainable homes. Others fear his presence will further drive housing costs in the town, where average home prices already exceed $500,000. Regardless of his intentions, he has brought new attention to the region’s need for affordable housing.