Oahu, Hawaii

by available purchasing power, high demand and the sale of ever-bigger yachts.

Yachts are getting more technologically sophisticated, adding features such as gyroscopic stabilization with computer control to reduce rocking and rolling; carbon fiber and composite construction to reduce weight; hybrid powertrains; and solar panels. Battery electric power is still a challenge for larger boats, though we may see continued advancement in that sphere as younger generations enter the market.

Recent design trends, according to Boat International, include enclosed “beach club” pool layouts replacing open-exterior decks; stern lounges; and softer, curving lines that mimic nature.

U.K.–based Sue Grant, a managing director at Berthon International, said current buyers are giddy but also practical. “A super-buoyant market favors the seller,” she said, “but buyers are canny, and they won’t pay a ridiculous premium. Those yachts that have sold best have been recent and in excellent condition.”

According to Boat International, there are more than 1,000 “superyachts” being built or on order in 2022, a 24.7% rise from 2021’s 847. Also last year, 493 people became billionaires, according to Forbes. The increase in the wealth of billionaires tallies closely to the growth in the yacht-sales market.

Yachts continue to get larger, and more luxurious. The Malaysian billionaire Robert Kuok Hock Nien is reportedly the owner of the History Supreme, the world’s most expensive superyacht at $4.8 billion. Some 10,000 kilograms of gold and platinum were applied to the yacht as it was being built, and a highlight is a statue made from Tyrannosaurus Rex bones.

For boaters who don’t need ownership, there’s always the option of leasing a superyacht. The 466-foot, 11-cabin Flying Fox cost an estimated $400 million to build, has a staff of 55, and can accommodate 25 luxury-loving guests. Features include two helipads and a two-deck wellness center. Rental is $3.1 million per week. TOP MARKETS

In Hawaii, international buyers have been replaced by mainland U.S. buyers.

Mainland U.S. Buyers Boost Luxury Market

Due to travel restrictions and a very strong dollar, international buyers on the Hawaiian island of Oahu have dropped off considerably, but buyers from the mainland U.S. have more than made up the difference, according to Kalama Kim, president of Berkshire Hathaway HomeServices Hawai’i Realty.

When the pandemic began in March 2020, “we saw people saying ‘we can work from anywhere—let’s move to Hawaii,’ ” Mr. Kim said. Much of that has continued.

Mainland U.S. buyers are primarily from the western states of Oregon, Washington and California, and now also Nevada and Colorado, he said.

The pandemic has also brought a steady rise in prices, according to Mr. Kim. The average price for a single-family home in Oahu in April was $1.4 million, up from $940,000 two years ago. Average condo prices rose to $613,000 in April compared with $520,000 two years ago.

New condos continue to sell out quickly, and the resale market for condos continues to surge. The Oahu luxury market has a large number of second-home buyers, and these condos are quite convenient as second homes, Mr. Kim said.

The lifestyle on Oahu is particularly appealing “because it has a little bit of everything—beaches, big surf, a large city and an urban feel,” he said. “We have a vigorous restaurant scene, an art scene and that live/work/play feel that you will only find on Oahu.”

Busy submarkets, according to Mr. Kim, include the Kakaako district, a hip neighborhood between downtown Honolulu and Waikiki; the North Shore and Kailua, two premium spots on the island that are famous for their beaches; and the traditional luxury market in Diamond Head.

Inventory is tight, he said. In the luxury-condo market, remaining supply is now below five months. The previous low was 7.3 months in 2005.

The market for single-family homes is even tighter, he said. “We’re now down to four months supply. That’s the lowest we’ve ever seen.”

Looking ahead, “we believe there is a strong pent-up demand because of the lack of inventory,” he said. “People are going to wait until more listings come on the market, which will be eaten up quickly,” often paid for in cash.