I've seen cases where someone found a condo they liked in Honolulu and made an offer based only on the listing photos and price, only to discover during the contract process that the property was leasehold. At first glance, it looked no different from a typical listing.

The median sale price for homes in Honolulu was $560,000 last month (Redfin, 2026). This is a 1.8% decrease from a year ago. On average, there are two offers, but it takes 98 days to close a deal. With 7.5 months of inventory available, it can be seen as a market where buyers have some leeway in their decision-making.

The Honolulu condo market includes leasehold properties, which only grant usage rights rather than ownership. In contrast, owning both the land and the building is referred to as fee simple. Leaseholds may appear to have lower sale prices, but when the lease term ends, renewal negotiations must be made, and monthly lease fees apply separately. If you decide based solely on price without checking this aspect, the cost structure can change significantly later on.

Oahu Island has varying flood risk levels and volcanic hazard zone ratings by area. It's difficult to gather this information with just a daytime visit. It's advisable to review FEMA flood maps and the state government's volcanic hazard zone ratings before signing a contract. While this may be a cumbersome process for buyers, it can be beneficial in estimating insurance costs in advance.

Given the prevalence of condos, HOA fees are also an important factor. It's not uncommon for monthly maintenance fees to exceed $1,000. Even if the sale price seems low, when combined with maintenance fees, the fixed monthly expenses can become quite substantial. Closing costs are typically around 2-5% of the sale price, so for a $560,000 home, you should expect between $11,200 and $28,000 (Bankrate.com).

The average effective property tax rate in Hawaii is 0.27%, one of the lowest in the nation (SmartAsset, 2026). This means that for a $560,000 home, the annual tax would be around $1,510. For families moving from California or New York, this could be a significant advantage. However, it's important to note that lower property taxes often mean higher living costs and insurance premiums that can offset this benefit.

For older condos, it's essential to thoroughly inspect the plumbing and roof waterproofing. Families that prioritize school districts should refer to the GreatSchools ratings for areas popular among Korean families, but it's crucial to verify the assigned school by address before signing a contract.

Getting a mortgage pre-approval is also a necessary step. It's advantageous to compare estimates from at least three lenders rather than proceeding with just one (CFPB recommendation). While the average transaction period of 98 days may seem ample, without a pre-approval letter, it can be difficult to act quickly when you find a property you like. It's also wise to avoid using all your reserves for the down payment and leasehold deposit. Keeping at least 3-6 months' worth of living expenses set aside is a safe practice.

It's important to revisit the calculation of closing costs. If you focus solely on the sale price when determining your down payment, you may find yourself short on funds at the closing table. Avoid making large expenditures or opening new credit cards during the contract period, as this can jeopardize your loan approval conditions. Consider how long you plan to live there in the long term, and if it's leasehold, whether the lease expiration aligns with your plans. By visualizing aspects related to commuting or children's education, you can reduce emotional decision-making.

Honolulu's mix of leasehold and fee simple properties means that the items to check differ from those in other cities. Market prices and tax rates can vary by time and location, so be sure to verify again before signing a contract. This is not investment or legal advice, and consulting a professional before making an actual contract is recommended.