State of Hawaii
Hawaii is a state where the land that is
available for private ownership and new construction are finite and in
short supply. Following the recession, prices had gone down over all,
but not as drastically as some places on the mainland that had
experienced a “bursting of the housing bubble.” Since then, prices first
leveled off, and then have been gradually increasing.
Although housing prices recovered after
the recession, the addition of new housing units since then has been
less than in former decades. We expect the demand for real estate to
continue to grow due to state population increases.
the international crossroads of the Pacific for air travel and shipping,
and the center of commerce, tourism, and government administration for
the state, properties in Oahu’s housing market continue to be in demand.
most populated island in the Hawaiian chain of eight major islands, Oahu
has seen modest and steady growth to real estate since the recession.
The current inventory is very low especially at lower prices, which has
brought up the median sales price.
Since people still need places to live, there is still high
Although new single family home construction in town is down (with most
new construction in communities outside of Honolulu), many luxury and
some affordable high rise properties are planned for the near future,
especially in Kakaako.
While luxury properties are still selling,
we see that the best properties in all categories sell sooner, and
overpriced properties may sit. Accurate pricing is key.
Outrigger Hotel and Embassy Suites revitalization of Lewers Street in
the heart of Waikiki, and the construction of the new Trump Tower,
Watermark, Allure, and Ritz Carlton luxury condominiums, continue to
enhance Waikiki’s value and appeal to a more upscale clientele. We
already have the world’s best known resort beach (Waikiki) and resort
landmark (Diamond Head), as well as 365 days of warm weather to go with
crystal seas, verdant greenery, and spectacular sunsets. This has driven
purchasing by mainland and off shore buyers for decades.
Waikiki is still in high demand for
vacation condominiums or investment properties. Baby boomers still want
to purchase for their retirement. Working people and retirees also like
the convenience and amenities.
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