Demand for Farm Lots & AG Zoned Land
The farm-to-table concept of locally grown farm products is in high demand. Many individuals dream of owning land on which they can run a family farm, raise livestock, or just have space to enjoy. Residents of Oahu live and work in densely populated areas with little to no room for farming or live stock.
The average home value on Oahu is now close to $780,000. Because of this, home owners are in a unique position to sell or to borrow against their homes in the city and purchase a larger piece of land on the North Shore where they can enjoy the open space and ability to farm or ranch.
The ability to drive only 45 minutes to the North Shore from the Honolulu Airport and enjoy a private farm or ranch is highly desired. However, the cost of buying agricultural land with a current home or with a building right is out of reach for most residents. Most of Oahu’s AG land is in large pieces and is owned by large corporations, limiting very little access to the public. What little AG land that is available is priced in the $500,000 per acre range or higher.
In 2010, Kunia Loa Ridgeland Farms purchased 854 acres of fallow farmland from James Campbell Co. for $7.7 million. The property was split into farm only lots (homes or farm dwelling not allowed) ranging from five to 35 acres, and sold to local farmers. Ninety-nine lots were listed on the market and all have been sold. These lots did not have water or electric and had dirt roads. Today these lots are sold at almost $100,000 per acre.
One of the major problems for Kunia Loa is that 50% of the land purchased was unusable due to the hilly terrain. We will be selling lots with 5 acres or more of farmable useable land.
Kunia Loa is not the only AG Park on Oahu. Mililani Agricultural Park is one of ten parks operated by the State of Hawaii, on all the islands. However, these parks only lease land to farmers. Leaving farmers without the ability to purchase and own land, forever making them an indentured leasee to the owner. Farmers have no way to pass on land and a heritage of farming. In addition, nearly all of the state’s AG parks have no space available for lease. Kunia Loa lot prices ranged from $40,000 to $60,000 per acre. Kunia Loa sold its only 35 acre parcel for $1.4 million in 2010. These are 2010 prices, which is drastically lower than 2016 market values.
In Kahuku there is another successful AG lot development located next to Turtle bay Resort. The high demand for AG land and necessity for space proved to be a winner. The first lots to sell in the project were the AG use only and a couple with farm dwellings allowed. Prices ranged from $300,000 to $500,000 for two and three acre lots. All 5 of the AG only lots are sold out. What remains now are beautiful oceanfront parcels ranging in price.
We have farm lots for sale that already have electric and water infrastructure in place, are located and close to the amenities and a growing tourist market of Historic Haleiwa Town, one of the most popular visitor destinations on Oahu.
Please contact Ralph Gray at 808-295-0704 or visit www.HawaiianBeachfront.com for more information.
