A few days ago, while discussing values for Maui real estate we tried to quantify the value of newer condominiums on Maui to older, otherwise comparable ones. In today's New York Times, an article describes how buyers in NYC are thinking about new versus older condominiums. Here are some snippets and then we'll discuss how this applies to Maui real estate:

“What happens is buyers go to new construction and see the health club, the Pilates and yoga classes, the swimming pools, the libraries, the meditation rooms — along with the oversized bathrooms and the high ceilings,” said Kathryn T. Higgins, an associate broker at DJK Residential. “They can’t afford that and the rational part of them knows that, but the emotional part of them hasn’t accepted it. It makes them disappointed and envious and influences their attitude toward the older apartments and buildings.”

We see that phenomena here as well. The amenities buyers are seeking are different, bigger, more open floorplans, expansive kitchen, infinity pools and gyms as common areas, but the process being described is very similar.

“The bar has absolutely been raised by new construction,” said Mr. Sicilia, whose kitchen consciousness has ascended to the point that he won’t even look at resales that can’t accommodate a new-condo-style kitchen. “You just can’t compare it to resales.”

As the Ho'olei's, Maluaka's, Residences at Kapalua and Papali's all get finished and widely seen, we expect an identical reaction here on Maui. Already, some of the older complexes around the island seem very, very dated. So should they be updated? Well, of course, but be careful:

Indeed, brokers say, new construction envy is prompting buyers like Ms. Boyle to recoil from renovations that fall short of the new-condo aesthetic. Buyers are also increasing the amount of money they deem necessary to bring a resale closer to new-condo status.

Making anything too unique is likely a mistake and doing a partial renovation, or doing it on the cheap is definitely a mistake on Maui these days. Again, what our research has determined is that unless a property is in 21st century condition, it will likely be thought of as a remodel anyway.