Is Buying a Condo in Honolulu a Good Investment?
Is Buying a Condo in Honolulu a Good Investment?
Honolulu is one of the most dynamic real estate markets in Hawaii. With its mix of oceanfront living, high-rise convenience, and steady global demand, many buyers ask: Is buying a condo in Honolulu a good investment? The short answer is yes — if you choose the right building, understand the costs, and match your strategy with your goals.
Why Honolulu Condos Attract Investors
Honolulu is Hawaii’s urban hub, attracting both locals and international buyers. Investors choose Honolulu condos because they offer:
- High demand: Oahu’s limited land supply and consistent buyer interest help maintain condo values.
- Rental opportunities: Many condos in Waikiki and Honolulu are popular for both long-term and short-term rentals.
- Lifestyle appeal: Proximity to beaches, shopping, dining, and jobs makes condos appealing to residents and visitors alike.
- Diverse inventory: Options range from affordable starter condos to luxury high-rises in Kaka‘ako.
Compare neighborhoods and find current listings on our Honolulu Condos for Sale page.
Honolulu Condo Market Trends
Like any investment, timing and location matter. The Oahu condo market update shows that demand remains strong, especially in Honolulu’s core neighborhoods.
- Steady appreciation: Historically, Honolulu condos have shown long-term price growth, even through market cycles.
- Rental demand: Strong for both local renters and vacation visitors, particularly in Waikiki.
- Inventory: Limited supply of new developments in the city keeps competition high.
Buyers seeking appreciation and stability should focus on established buildings with strong reserves and good locations.
What to Consider Before Buying a Condo in Honolulu
While condos are attractive, they come with unique costs and considerations:
HOA Fees
Monthly homeowners association (HOA) fees cover maintenance, insurance, and amenities. They can range from a few hundred dollars to over $1,000 depending on the building. High-end towers like those in Kaka‘ako often have higher fees but premium services.
Rental Rules
Honolulu has strict rules on short-term rentals (STRs). Many condos require 30-day minimum stays, though certain Waikiki buildings allow vacation rentals. Always check the building’s rental policies before investing.
Financing
Some older buildings may have lending restrictions due to reserve funds or leasehold status. Work with a lender experienced in Hawaii condo loans.
Best Areas in Honolulu to Buy a Condo
Not all Honolulu condos are created equal. Here are the most popular areas:
Waikiki
Famous worldwide, Waikiki is ideal for those who want rental potential and beachfront living. Buildings like the Waikiki Landmark stand out for their amenities and resale value. See our Waikiki Condos guide for more.
Kaka‘ako / Ala Moana
This modern district has some of Oahu’s most luxury condos, including Anaha, Waiea, and Ae‘o. Known for sleek architecture and urban convenience, it appeals to professionals and international buyers.
Downtown Honolulu
For professionals, Downtown offers affordability and convenience. Buildings like Capitol Place and Harbor Court are popular for long-term rentals.
Affordable Options
If budget is a concern, browse our Affordable Condos in Honolulu guide. These condos may not be oceanfront but can offer strong long-term value.
Investment Strategies for Honolulu Condos
There’s no one-size-fits-all strategy. Successful investors consider:
- Long-Term Buy & Hold: Purchase in a desirable building and hold for appreciation.
- Vacation Rental (where allowed): Some Waikiki condos are zoned for nightly rentals — strong cash flow potential.
- Second Home: Many buyers split their time between Hawaii and the mainland, renting their condo seasonally.
Work with a local agent to match your investment goals to the right building and neighborhood.
Pros and Cons of Investing in Honolulu Condos
Pros
- Global demand and limited supply help preserve value
- Strong rental potential, especially in Waikiki
- Diverse options: from luxury residences to affordable starter units
Cons
- High HOA fees in some buildings
- Strict rental regulations (short-term rentals limited)
- Leasehold properties may lose value over time
Frequently Asked Questions
Are condos in Honolulu a good investment?
Yes, especially in high-demand neighborhoods like Waikiki and Kaka‘ako. Values have shown steady appreciation, and demand from locals and international buyers remains strong.
What is the average price of a condo in Honolulu?
Prices vary from around $350,000 for entry-level studios to $2M+ for oceanfront condos and luxury penthouses.
Can I rent out my Honolulu condo as an Airbnb?
Some Waikiki condos allow nightly rentals, but many Honolulu buildings require 30-day minimum stays. Always verify the rules for your building.
What are HOA fees like?
Expect to pay $400–$1,500+ monthly depending on location, size, and amenities. Luxury towers generally have higher fees but include extensive services.
Conclusion: Should You Buy a Condo in Honolulu?
Yes — buying a condo in Honolulu can be a smart investment if you understand the market. Whether you’re interested in rental income, appreciation, or simply a home in paradise, Honolulu offers opportunities at nearly every price point. Focus on location, building quality, and your goals.
Ready to take the next step? Start with these resources:
Frequently Asked Questions About Buying a Condo in Honolulu
Are condos in Honolulu a good investment?
Yes—especially in high-demand neighborhoods like Waikiki and Kaka‘ako. Values have shown steady long-term appreciation, backed by limited land supply and global demand. Your results depend on building quality, location, rental policies, and carrying costs such as HOA fees.
What is the average price of a condo in Honolulu?
Prices vary widely by location, building, and size—from roughly the mid six figures for entry-level studios to $2M+ for oceanfront condos and luxury penthouses. Always review recent comps, HOA dues, and any special assessments to understand total cost of ownership.
Can I rent out my Honolulu condo as an Airbnb?
Short-term rental rules are strict and vary by zoning and building. Many properties require 30-day minimum stays, while some Waikiki condos allow nightly rentals. Confirm current rules with the HOA and city regulations before buying.
What are typical HOA fees for Honolulu condos?
HOA fees typically range from a few hundred dollars to $1,500+ per month depending on amenities, building age, staffing, insurance, and reserves. Luxury towers with concierge services and extensive facilities tend to be at the higher end.
Which Honolulu areas are best for condo investments?
Waikiki is popular for rental demand and beachfront access; Kaka‘ako and Ala Moana offer modern high-rises and urban convenience; Downtown can offer better entry prices and steady long-term tenants. Match your goals—cash flow, appreciation, or personal use—to the neighborhood. Start here: Honolulu Condos for Sale.
