Just to the East of the Diamond Head area, between Black Point and the Kahala Hotel lies the beautiful palm lined, white sandy beach of Kahala. This area has long been home to the working and middle class, that is until the late 80s when it became highly desirable to the Japanese Buyers. During the early 90's, most small older beach homes were replaced with large mansions, to attract the rich Japanese. Then, in the late 90's, when the Japan market crashed, several of the newer homes went into bankruptcy fell into disrepair. In the last 2 decades, investors have come in and rebuilt the area, to again be an area desired by the rich and famous.
Beachfront homes here are on a minimum one acre parcel of land. In Hawaii, land is worth more than the improvements, or homes on it. Therefore, beachfront homes in this area start at over 10 million dollars. The Kahala Hotel, on the Eastern end of Kahala, is surrounded by the Waialae Golf Course. An exclusive golf club, home to the annual Sony Hawaiian Open Golf Tournament.
The attraction to the is area, is that it is close to town, shopping and Waikiki, but far enough away to still feel like a tropical get-away. Homes off the beach will be smaller in lot size and there are still some 'older' homes that have a lot of potential to be renovated, or replaced by a modern luxury home.