(KHNL) - Head down to the Kakaako and Ala Moana areas, it's easy to see condominiums are big business.
Strong demand and the availability of units have driven prices up. In the last twelve months, the median sales price for condos in Honolulu increased by $46,000.
The Ala Moana Hotel Condominium is just one project that's taking advantage of the hot market. Converting former hotel rooms into fee simple units has paid off.
"Started sales last year, July, sold over 700 units in the first 60 days," said Kathryn Acorda, marketing director.
"Now, basically, we have about ten units left on the market."
Condo sales remained hot enough to drive the median sales price in Honolulu to $310,000 in June. That trend may continue.
"There's a lot of factors, I think Hawaii's a destination," Acorda said. "It's just a great place to own real estate."
Many buyers are from the Mainland looking for second homes or investment properties. Local buyers typically want to move from the suburbs to find a more urban lifestyle.
"You're actually seeing a lot of people downsizing into condominiums, mostly for the commute," Acorda said. "People from Hawaii Loa Ridge, Hawaii Kai, actually on the west side of Oahu as well."
Condominium projects in the Kakaako and Ala Moana areas are still under construction, suggesting developers believe it will remain a sellers market for the foreseeable future.
The number of condo units on the market skyrocketed over the last twelve months from 988 in June of 2005 to more than 2,500 last month.