Key takeaway: With a leasehold condo, you own the unit but rent the land under it, and when the ground lease ends the land goes back to the landowner. That’s why a Kāhala Beach two-bedroom sold for $45,000 in 2025, with less than two years left on its lease (Hoodline, citing PBN). Numbers checked October 30, 2026.
How it works
Fee simple means you own the unit and your share of the land outright. Leasehold means you pay lease rent to a landowner, often a large trust, for a set number of years. Lease rent is usually renegotiated every 10 to 20 years, and the new rent can be several times the old one (Hawaii Business; Hawaiʻi Life).
How common it is
About 15% of Waikīkī condos are leasehold, according to a June 2026 estimate (Hawaiʻi Life). In 1978, about a third of owner-occupied single-family homes on Oʻahu sat on leased land. A 1984 U.S. Supreme Court ruling upheld the state’s forced conversion of those house lots to fee simple, but condos weren’t included (Hawaii Business).
Before you buy
- Check how many years are left. Lenders typically want 30 to 40 or more, and Fannie Mae requires the lease to run at least five years past the loan (The Oahuist).
- Find out when lease rent is next renegotiated, and whether the landowner will sell the fee interest.
- Compare total cost over the years you plan to stay, not just the price.
We couldn’t find a reliable figure for how much cheaper leasehold units sell for on average. It depends on years remaining and lease terms.