Market Overview: A Transition Year
Hawai‘i’s luxury market in 2025 is experiencing a shift. Entry-level properties under $1.5M are seeing a steady decline in sales volume, while mid-tier ($1.5M–$3M) and luxury ($3M+) segments remain resilient. This transition suggests that property values continue moving into higher price brackets, reinforcing Hawai‘i’s status as a top-tier global luxury destination.
Photo Credits: TG Hawai‘i Luxury Market Report 2025.
Buyer Demographics: Who is Purchasing in 2025?
- US Mainland Buyers are growing in influence, particularly from California, though their pace has slowed compared to 2024.
- International Buyers, especially from Japan and Canada, have not returned to pre-pandemic levels, with travel and economic uncertainty slowing activity.
- Cash Buyers dominate: Approximately 70–74% of luxury sales are cash purchases, as high interest rates encourage Buyers to bypass mortgages.
Socio-Economic Factors Impacting the Market
-
Hawai‘i’s high quality of life continues to draw interest, even as rising living costs and insurance premiums encourage buyers and sellers to approach decisions with greater intention.
-
Global policy shifts, including tariffs, highlight the advantage of securing property now, before construction costs increase further.
-
A historic generational wealth transfer is underway, with baby boomers expected to pass along an estimated $124 trillion by 2045—bringing fresh energy and opportunity to the luxury market.
FAQs About the 2025 Hawai‘i Luxury Market
Why is cash preferred in 2025?
With mortgage rates hovering around 6.10%, cash purchases eliminate financing costs and provide a competitive edge.
Has foreign Buyer activity recovered?
No. International segments remain significantly below pre-2020 levels, especially from Japan and Canada.
What’s driving the $3M+ segment?
Wealth transfer, US mainland Buyers seeking lifestyle properties, and limited inventory in prime resort areas.
Interested in learning how these statewide trends affect the Big Island?
Contact Marco A. Silva for tailored insights and private property opportunities.
Special thanks to Title Guarantee for providing the research and insights featured in the TG Hawai‘i Luxury Market Report 2025