Japanese buyers have been mostly absent from the high-end market since the pandemic started, but many mainlanders, and some locals, are showing interest.

The average rent for a studio apartment on O‘ahu last year was up 25% from 2017 and larger rentals were up, too, by at least 17%.

Homeowners are guaranteed a tax break on capital gains up to a fixed amount, while owners of investment properties can defer those gains using a 1031 exchange. But “timing is important” for the strategy to work, says Julie Bratton of Old Republic Exchange Co.

O‘ahu home sales were down in May compared with a year ago, but some areas, like Hawai‘i Kai and Kailua, are starting to see an increase in prices.

Nationwide, homeowners lost equity on average during the first quarter of this year. But in the Islands, homeowners with mortgages gained on average $24,900 in the value of their homes.