This is a continuation of my article series about turnover rate for Kihei condos.
Now that you’ve learned about the importance of knowing the turnover rate for a condo, let’s try to understand the selling motives that might be behind a high turnover rate (why more owners are selling) and take a look at the Kihei vacation rental condos that have the highest turnover rate.
Is a high turnover always a bad sign?
Definitely not! A high rate of resales does not implicitly mean something’s wrong with the condo complex. The prime selling motivation might be the owner’s personal finances and have nothing to do with their feelings or experience at their condo. A positive expression of this scenario can be seen in entry level condos. Many of the Kihei condos at the top of the list [for high turnover rate] have units that are affordably priced which means the complex attracts first time buyers and investors. Many owners at these complexes sell simply because they are ready to step up to a bigger unit or a different location.
What else can motivate high turnover rate?
The truth is there are many different factors that can contribute to a high turnover rate. I have noticed that the cluster of the Kihei condos with the highest turnover rate do share one thing in common: more owner occupants. Many Kihei condo buyers select a unit intending to live there for the long term but shortly discover that the community is not the right fit. Sharing walls and common areas can be hard if you feel at odds with your neighbors.
Sometimes owners decide their specific unit does not suit them but love everything else about the community. Other times it might be the location of the community or the amenities it has to offer.
In the case of Kihei vacation rental condos, investors might be quick to sell if their rental operation is not giving them the income they originally expected. Alternatively, there are times when the vacation rental is performing well but the owner is burned out from self-managing the unit and decides to sell (self managed operations are more common with entry level vacation rental condos).
Turnover rate does not parse out selling motivations
As you can see from the above examples, sellers might have very different reasons for selling their condo. The turnover rate for a Kihei condo community is blind to those motivations, it’s simply an index to help understand whether the number of units selling is high or low in relation to the number of units existing at the complex.
So, it’s important to remember that the turnover rate should not be used as the sole piece of info for finding the right condo. It’s an insight that should prompt you to ask more questions and dig deeper. In short, a low turnover rate does not guarantee you a perfect owner experience. Don’t overlook a complex with a high turnover rate, it might just be your perfect place.
Top 10 Kihei vacation condos with high turnover rates
For this list I’ve decided to include only Kihei vacation rental condos that have at least 50 units in the complex. The top 7 condos have turnover rates that are above the Kihei average of 5.71%.
Do you want to benefit from my detailed analysis on 5 years worth of sales data and see the actual average turnaround rate for the condos listed below? I’d be very happy to share that valuable info, just take the first step by creating your free Property Organizer account and then contact me with a quick note saying which condos you’re interested in.
#10 – Haleakala Shores
Unit #A302 at Haleakala Shores sold for $625,000 in 2015.
Haleakala Shores is a South Kihei condo with 76 units. In 2015 there were 4 units sold and the average sales price was $4579,750. See all Haleakala Shores condos for sale.
#9 – Kalama Terrace
Kalama Terrace #P309 sold for $275,000 in 2015.
Kalama Terrace is a South Kihei condo complex with 61 units. In 2015 there were 5 units sold and the average sales price was $268,600. See all Kalama Terrace condos for sale.
#8 – Kihei Bay Vista
Kihei Bay Vista #A206 sold for $265,000 in 2015.
Kihei Bay Vista is a North Kihei condo community with a total of 60 units. In 2015 there were 3 units sold and the average sales price was $292,333. See all Kihei Bay Vista condos for sale.
#7 – Hale Kai O Kihei
Hale Kai O Kihei #216 sold for $545,000 in 2015.
Hale Kai O Kihei is a central Kihei condo with 59 units. In 2015 there were 6 units sold and the average sales price was $420,000. See all Hale Kai O Kihei condos for sale.
#6 – Luana Kai
Luana Kai #B201 sold for $385,000 in 2015.
Luana Kai is a North Kihei condo community with 113 units. In 2015 there were 6 units sold and the average sales price was $464,833. See all Luana Kai condos for sale.
#5 – Pacific Shores
Pacific Shore #B214 sold for $353,000 in 2015.
Pacific Shores is a South Kihei condo complex with a total of 136 units. In 2015 there were 11 units sold and the average sales price was $341,754. See all Pacific Shores condos for sale.
#4 – Kauhale Makai
Kauhale Makai #109 sold for $373,000 in 2015.
Kauhale Makai is a North Kihei condo community and is one of the few communities that have Kihei oceanfront condos priced under $400,000. There are a total of 169 units at Kauhale Makai. In 2015 there were 14 units sold and the aferage sales price was $370,321. See all Kauhale Makai condos for sale.
#3 – Koa Resort
Koa Resort #5B sold for $315,000 in 2015.
Koa Resort is a North Kihei condo with 54 units in the complex. In 2015 there were a total of 3 units sold and the average sales price was $299,333. See all Koa Resort condos for sale.
#2 – Kihei Resort
Kihei Resort #108 sold for $270,000 in 2015.
Kihei Resort is also in North Kihei and located next to Koa Resort. Kihei Resort has 64 units in the complex. In 2015 there were 8 units sold and the average sales price was $318,750. See all Kihei Resort condos for sale.
#1 – Kihei Bay Surf
Kihei Bay Surf #257 sold for $222,000 in 2015.
Kihei Bay Surf is a North Kihei condo complex with 118 units. In 2015 there were 14 units sold and the average sales price was $222,000. See all Kihei Bay Surf condos for sale.