Hawaii Real Estate and Economy: August 2012

Friday, August 31, 2012

Visitor Industry Helping Kauai’s Economy Stay Afloat

According to a presentation by Hawaii Pacific University economist, Leroy Laney, the island of Kauai’s economy is able to stay afloat thanks to a strong visitor industry. Unfortunately, that’s about all that’s going well for Kauai’s economy. Laney commented, “If all parts of the Kauai economy were doing as well as tourism, the entire island would be booming.” Laney noted that visitor spending is up 21 percent on Kauai during the first seven months of the year as compared to the same period in 2011. However, the island’s unemployment rate is still very high at 7.8 percent and area including construction are struggling to recover.

Source: Honolulu Star Advertiser, 8-31-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Honolulu Rail Project – Lawsuit Delays Will Cost City Millions

On August 24, 2012, the Hawaii Supreme Court ruled that the state of Hawaii’s Historic Preservation Division had violated its own rules and should have completed an archaelogical survey of the entire 20-mile route of the Hawaii Rail Project before allowing construction to begin. As a result, the Honolulu Authority for Rapid Transportation (HART) has ordered that all new work on the Rail Project be halted until the survey could be completed.

Lance Wilhelm is the Senior Vice President of Kiewit, one of the main construction companies hired to build the rail project. Wilhelm stated, “It’s very difficult to estimate (how much the delays would cost). It’s a function of how much work is delayed, what kind of work, and for how long, and all of those things we don’t know at this point. We’re talking to staff every day, and we’re telling them virtually the same thing. We’re working very hard with HART to get some direction, and to the extent that we can figure out what needs to happen, we’ll do it, and we’ll do it as quickly as we can. But for the time being, we’re really kind of waiting on some direction.”

Thursday, August 30, 2012

Disney’s Aulani Resort to Expand

The Walt Disney Company has announced that they will be expanding their Aulani Resort & Spa property at Ko Olina on the island of Oahu. According to their plans, the property will add a third swimming pool, several new restaurants and additional retail space. Construction would start in September 2012 and work is expected to be finished by the middle of 2013. Aulani spokesman, Todd Apo, commented, “We will continue to listen to our guests and do what’s right to provide them with the best resort experience here at Aulani. A lot of it’s been listening to our guests over the last year. In their feedback to us they’re looking for more. We have found ways to provide our guests with more of what they’re asking for.”

Source: Honolulu Star Advertiser, 8-30-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Honolulu’s Unemployment Rate Drops to 5.7 Percent in July 2012

According to a report released by the U.S. Bureau of Labor Statistics, the unemployment rate for the city of Honolulu dropped to 5.7 percent in the month of July 2012. This was a significant decrease from the 6.1 percent posted during the same month a year prior and gave Honolulu the 35th lowest unemployment rate out of the 372 major metropolitan areas surveyed across the country. In comparison, Maui County had a 6.8 percent unemployment rate, Kauai County a 7.8 percent unemployment rate and Hawaii County (Big Island of Hawaii) had a 9.3 percent unemployment rate. Nationally, the unemployment rate was 8.6 percent in July 2012.

Big Island Real Estate – Hawaiian Airlines Hopes to Create Nonstop from Kona to Tokyo

Hawaiian Airlines has announced that they have submitted an application with the U.S. Department of Transportation to create a daily nonstop route from Kona on the Big Island of Hawaii to Haneda International Airport in Tokyo, Japan. Japan Airlines previously had a route to the Big Island of Hawaii, but tough economic conditions forced them to cancel that service almost two years ago. Hawaiian Airlines spokesman Keoni Wagner commented, “We’ve seen what the loss of nonstop service has done to the economy of the Big Island and we think there’s an opportunity to restore the service now. We’ve been talking with community leaders on the Big Island and will be reaching out for support of our application.”

Hawaii Tourism Authority Reports Fantastic July 2012

The Hawaii Tourism Authority released a report that noted that July 2012 was one of the best months for the state’s tourism industry in history. According to the report, a total of 720,355 visitors arrived in Hawaii during July and spent $1.28 billion. This was an increase of 7.8 percent in arrivals and 17.8 percent in spending as compared to the same month a year prior. President and CEO of the Hawaii Tourism Authority, Mike McCartney, stated, “Hawaii’s tourism economy continues to be on pace for a record year through July. We anticipate that the momentum from the positive increase in visitor arrivals and spending will continue through the second half of the year.”

Director of sales and marketing for the Hyatt Regency Waikiki Beach Resort and Spa, Brad Mettler, commented, “Hawaii is living the best of all worlds right now, It’s as good as I’ve seen it since I got here four years ago. As we move into the fall shoulder season everything seems to be shaping up fine. And, there are signs that the peak holiday season will be robust. We are already seeing strong demand between Christmas and New Year’s.”

Monday, August 27, 2012

Honolulu Rail Project – Construction Halted for $5.26 Billion Rail Project

The Native Hawaiian Legal Corp. and the Honolulu Authority for Rapid Transportation (HART) have both confirmed that the city of Honolulu has halted construction on the $5.26 billion rail project due to last week’s ruling of the Hawaii Supreme Court. In an unanimous decision, the Hawaii Supreme Court found that the city of Honolulu had improperly begun construction before completing a required achaeological survey of the path that the rail would follow. Until the city finishes a survey to determine whether or not there are Native Hawaiian burials or other archaeological resources in the intended path, all construction would be ceased.

The Honolulu Authority for Rapid Transportation stated, “HART is working with its contractors to determine what work will be necessary for public health and safety, to secure and maintain the job sites, or to otherwise responsibly wind up ongoing activities.” It had been previously estimated that each month of delay will cost the city approximately $10 million.

Cliff Slater, an opponent of the rail project, predicts that it would take the city until the spring of 2013 before they will be able to accurately complete their archaeological survey. Slater noted that in the meantime, the city is also being faced with separate lawsuit in federal court. Arguments for the federal lawsuit were also heard last week and a ruling in that case will be made by the judge in the next few months.

Source: Honolulu Star Advertiser, 8-27-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Sunday, August 26, 2012

Fantastic Deal for Queen’s Surf Cafe and Lanai

Honolulu City Council members are questioning a fantastic deal that the Queen’s Surf Cafe and Lanai is getting from the city. Located on an oceanfront spot on Kapiolani Park, the open air restaurant and concession stand has a contract with the city to pay only 5 percent of gross sales to the city. This equates to approximately $3,442 per month during the first year that it has been open. The owners of the restaurant are also required to maintain the public restrooms and do some landscaping of the surrounding area. City Councilwoman Ann Kobayashi, the Budget Committee Chair, stated, “I told the department that I don’t have anything against the vendor. It’s a beautiful setting, and we haven’t had any complaints about the business. My concern is the process. If this isn’t the highest and best use of the space, the city is losing money. It’s also a fairness issue.”

Kim Scoggins is the vice president and division manager for Colliers International, a local real estate company. Scoggins added, “Typically they’d be paying more like $25,000 in net rent for a retail space like this. It’s really up to the city to make sure their system is correct and that they are watching.”

The current permit will expire on December 3, 2012 and it is unclear if the owners of Queen’s Surf Cafe will win the bid again.

Source: Honolulu Star Advertiser, 8-26-2012, www.staradvertiser.com
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Saturday, August 25, 2012

Hawaii Foreclosure – July 2012 Filings Plummet to Record Lows

According to the state Judiciary, only 75 new foreclosure cases were filed during July 2012. This was a huge drop compared to the 355 cases filed during the same month a year prior. Experts attribute this dramatic shift to the latest changes in Hawaii’s foreclosure law brought about by Act 182 which went into effect in June. Act 182 has even stricter requirements for lending companies and their legal departments when seeking to foreclose on homeowners.

Source: Honolulu Star Advertiser, 8-25-2012, www.staradvertiser.com
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Friday, August 24, 2012

Honolulu Rail Project – Legal Victory for Rail Opponents

The Hawaii Supreme Court has ruled unanimously that a state agency has violated its own rules by approving the Honolulu Rail Project before an archaeological survey was completed for the entire 20-mile rail route. The Hawaii Supreme Court stated that the city must complete the survey to determine if there are any Native Hawaiian burials or other archaeological resources in the path of the Honolulu Rail Project. Legal experts now believe that the case would return to Circuit Court where a judge would file an injunction to stop construction until the archaeological survey is completed.

Source: Honolulu Star Advertiser, 8-24-2012, www.staradvertiser.com
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Thursday, August 23, 2012

Big Island Real Estate – Keauhou Beach Hotel Closed

Kamehameha Schools has announced that they will be closing and demolishing the Keauhou Beach Hotel on the Big Island of Hawaii. The School’s Chief Executive Officer, Dee Jay Mailer, stated, “Despite the good work of many committed and talented people, financial losses at the hotel over the last six years have been substantial. To return the Keauhou Beach to possibly compete in the Kailua-Kona hotel market would take tens of millions in further investment that would be very difficult to recover.” The Kona-Kohala neighborhood where the hotel is located has been struggling over the past several years. Hotel occupancy in the area was just 62.6 percent during the first seven months of this year, as compared to the 85.2 percent seen in Waikiki.

Source: Honolulu Star Advertiser, 8-23-2012, www.staradvertiser.com
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Office of Hawaiian Affairs Purchases Iwilei Office Complex

The Office of Hawaiian Affairs has announced that they have purchased the Gentry Pacific Design Center located at 560 N. Nimitz Highway. The 4 acre lot already has a 185,787 sq ft building on the property and will eventually become the new home for the Office of Hawaiian Affairs corporate offices. OHA current approximately 150 people and leases a space in the Pacific Park Plaza with an annual rent of approximately $1 million. Chief Executive Officer for OHA, Kamana’opono Crabbe, stated, “The acquisition represents another meaningful step forward in our strategy of creating new opportunities to improve conditions for all Native Hawaiians. This acquisition will be a positive addition to OHA’s portfolio as we diversify our investments.”

Wednesday, August 22, 2012

Honolulu Rail Project – Federal Judge Hears Both Sides of Case

The Honorable A. Wallace Tashima, a senior federal judge with the 9th U.S. Circuit Court of Appeals, has heard both sides of a lawsuit regarding the Honolulu Rail Project. The lawsuit accuses the city of Honolulu and the Federal Transit Administration officials of violating federal environmental laws. The city’s legal team argued that the FTA and the city followed all requirements of the National Environmental Policy Act and other federal laws. Tashima gave no indication of how he would rule, or when he will make his final decision. However, legal experts believe that it may be weeks or months before Tashima issues a decision in the case.

Source: Honolulu Star Advertiser, 8-22-2012, www.staradvertiser.com
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Two Condominium Towers Proposed on Former Honolulu Advertiser Property Lot

Developer Marshall Hung and the Tradewind Capital Group Inc. are planning on purchasing the former Honolulu Advertiser property and building two moderate-priced condominium towers on the site. According to their press release, Hung will still preserve the historical news building, and would create the two towers on another section of the 3.7 acre lot. The property is located in Kakaako on the corner of South Street and Kapiolani Boulevard. Tentatively, Hung’s proposal would be to build as many as 1,000 units in the project. Units would be sold to “middle income” families and be priced between $293,000 to $570,000 Fee Simple.

Tuesday, August 21, 2012

Outrigger Waikiki Finishes $18 Million Renovation

The Outrigger Waikiki on the Beach is putting the finishing touches on an $18 million renovation to their resort property. Even more impressively, thanks to a strong marketing campaign through social media, occupancy over the past nine months of renovations was excellent. The hotel’s General Manager, Robert McConnell, stated, “This was literally the smoothest renovation that I’ve ever been a part of. The key is that we made sure everyone knew what was going on, and our partners supported us. We kind of turned it into a fun thing. We literally took pictures daily and posted them online, and the funny thing is that people would still ask for more.”

According to the Waikiki Improvement Association, over $4 billion worth of renovations have been completed in Waikiki over the past 15 years. President of the WIA, Rick Egged, stated, “It’s great that properties are continuing to invest. The large-scale reinvestment in Waikiki has enabled it to lead the turnaround in Hawaii’s economy. If we hadn’t spent all this money, there would be no way our occupancies would be where they are. It’s the occupancy and spending in Waikiki that has made all the difference in tax collections and the like.”

Source: Honolulu Star Advertiser, 8-21-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Monday, August 20, 2012

Honolulu Rail Project – Lawsuit Has Rail Project in Court

A lawsuit filed by opponents of the Honolulu Rail Project alleges that the city and Federal Transit Adminsitration officials have violated federal environmental law. University of Hawaii law professor, Randall Roth, is part of the group suing the city to stop the project. Roth stated, “I believe in rule of law. I believe that the law should be obeyed, especially by governmental agencies, and in my opinion and the opinion of our lead lawyers, the city and the FTA violated several very important laws.”

The city contends that they have followed all of the procedures required by federal law. Executive Director of the Honolulu Authority for Rapid Transportation, Daniel Grabauskas, stated that, “the city’s position has always been that the city and the FTA conducted a comprehensive environmental evaluation of the rail project and has fully complied with the National Environmental Policy Act and other federal laws.”

Opening arguements by both sides will be heard in court this week by Judge A. Wallace Tashima of the 9th U.S. Circuit Court of Appeals.

Source: Honolulu Star Advertiser, 8-20-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Sunday, August 19, 2012

Tourism Rebound Driving Economy

According to the Hawaii Tourism Authority, visitors spent a total of $7.1 billion during the first six months of 2012. This was a 21.4 percent increase as compared to the same period a year ago.

The hotel industry saw some of the highest gains as revenue increased by 14.8 percent for a total of $1.6 billion. This equated to a half-year record for the hotel industry in the state of Hawaii. According to the senior vice president and director of operations for the Starwood Hotels & Resorts in Hawaii and French Polynesia, Keith Vieira, “Guests are willing to pay more for enhanced services in 2012. Our Sheraton Club at the Sheraton Waikiki is doing so well that we are looking at introducing it in other hotels next year.”

The Hawaii Tourism Authority also noted that on average visitors spend 9 percent more on shopping, 8.8 percent more on food and beverages, 8.5 percent more on transportation and 5.1 percent more on entertainment. This equates to a per person per day spending of $40.50 for food and beverages, $28.80 for shopping, $19.10 for transportation, $16.10 on entertainment and $7.90 for miscellaneous expenses.

President and CEO of the HTA, Mike McCartney, stated, “Our visitors spent an average of $39 million a day during the first half of 2012. That’s up from $32 million a day during the same period in 2011. At this pace, annual expenditures would exceed $14 billion.”

Source: Honolulu Star Advertiser, 8-19-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Saturday, August 18, 2012

Honolulu Rail Project – Ben Cayetano vs. Kirk Caldwell

Former Governor of Hawaii, Ben Cayetano, and former Managing Director Kirk Caldwell will be campaigning for the position as the city mayor in November. Cayetano received 44.8 percent of the vote in the primary, but did not receive the 50 percent that he needed to win the election outright. Caldwell received 29.5 percent of the vote, while current mayor Peter Carlisle received 25.1 percent of vote. Carlisle will be stepping down from Mayor after being in office for just two years.

Source: Honolulu Star Advertiser, 8-12-2012, www.staradvertiser.com
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Unemployment Rate in Hawaii Holds At 6.4 Percent

According to a report released by the State’s Department of Labor and Industrial Relations, Hawaii’s unemployment rate held firm at 6.4 percent during the month of July 2012. While this is still a significant decline from the peak of 7.1 percent reported in the summer of 2009, state officials are hoping for even better results. Honolulu county had the lowest unemployment rate of 5.7 percent. Maui County had a 6.8 percent unemployment rate. Kauai County had a 7.8 percent unemployment rate. Hawaii County (Big Island) had a 9.3 percent unemployment rate.

The largest number of jobs gained was in the professional and business services industry with added 1,600 jobs. The construction industry also saw positive increases and added another 800 jobs. Manufacturing added another 400 positions across the state.

Source: Honolulu Star Advertiser, 8-18-2012, www.staradvertiser.com
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Friday, August 17, 2012

Kailua Real Estate – Ban on Commercial Activity at Kailua Beach Stands

On July 26, 2012, Mayor Peter Carlisle vetoed Bill 11 which banned all commercial activity at Kailua Beach Park. However, the Honolulu City Council voted again on August 15, 2012 and in a 7 to 2 vote overrode the Mayor’s veto. Ikaika Anderson, one of the City Councilmen, stated, “It’s not that we do not welcome the tour bus companies and their visitors. The fact is we lack the space to accommodate them.”

Most Kailua residents are happy about the ban on commercial activities at their beach park. However, there are several kayak companies who have announced that they will be filing a lawsuit against the City Council for exceeding their authority.

Source: Honolulu Star Advertiser, 8-17-2012, www.staradvertiser.com
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Hawaii Economy Growing, But at a Slower Pace

According to a report released by the state Department of Business Economic Development and Tourism, Hawaii’s economy is growing, but at a slower pace then had been previously estimated. Tourism continues to rapidly increase and it is expected that 7.93 million visitors will travel to Hawaii this year and spend $14.12 billion. However, other areas of the economy are moving at a much slower pace. Richard Lim, the DBEDT director, stated, “While nontourism sectors have still not fully rebounded, they are showing positive signs of recovery. That’s why we are focused on policy tools and state support in areas such as construction, renewable energy and light manufacturing.”

The state’s gross domestic product was expected to grow by 2.2 percent, but the latest prediction only has it increasing by 1.5 percent. Construction grown remains slow with a 2 percent expected increase and government jobs will grow by 0.3 percent.

Below are new predictions from the State Department of Business, Economic Development and Tourism:

Visitor Arrivals:
2012 – 8.6 percent increase
2013 – 3.5 percent increase
2014 – 2.6 percent increase

Visitor Spending:
2012 – 15.2 percent increase
2013 – 5.6 percent increase
2014 – 5.2 percent increase

Gross Domestic Product:
2012 – 1.5 percent increase, adjusted for inflation
2013 – 2.3 percent increase, adjusted for inflation
2014 – 2.4 percent increase, adjusted for inflation

Wednesday, August 15, 2012

Inter-Island Cargo Shipments Decline

According to a report released by Young Brothers Ltd., cargo shipments between Honolulu and the neighbor islands have declined by 2.7 percent during the second quarter of 2012. Young Brothers is the state’s largest inter-island shipping company and their company president, Glenn Hong, stated, “The drop in second-quarter volume reflects the continued economic uncertainty. While we would prefer to reflect positive comparisons like we experienced in the first quarter of the year, the neighbor island economies at least appear to be stabilizing.”

Source: Honolulu Star Advertiser, 8-15-2012, www.staradvertiser.com
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Tuesday, August 14, 2012

Senor Frog’s Restaurant Closes in Waikiki

The Mexican restaurant, Senor Frog’s, closed its doors this past Sunday due to the fact that they were unable to come to an agreement on their lease with the Royal Hawaiian Center. All 82 of their employees will be laid off as of August 20, 2012. It is unclear if the restaurant will reopen in another location on Oahu. Senor Frogs has a total of 15 locations in the United States, Mexico and the Caribbean. The Waikiki property opened their doors in 2007.

Source: Honolulu Star Advertiser, 8-14-2012, www.staradvertiser.com
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Monday, August 13, 2012

Honolulu Rail Project – More Details from the Primary Mayor Election

As the results from the Mayor primary on Saturday filters in, former Governor Ben Cayetano won 33 of the 35 legislative House districts on Oahu for a combine 44.8 percent of the vote. Cayetano and former Managing Director Kirk Caldwell will enter a head to head runoff in the general election on November 6, 2012. Caldwell received 29.5 percent of the vote, while current Mayor Peter Carlisle received 25.1 percent of the vote.

Cayetano, who is strongly opposed to the Honolulu Rail Project, has stated that he was pleased with the results. Caldwell, a strong supporter of rail, has backing from labor groups and public and private unions. The $5.6 billion rain question would be which candidate Carlisle’s 25.1 percent of voters will back now that Carlisle is out of the race. Carlisle, like Caldwell, was pro-rail.

Source: Honolulu Star Advertiser, 8-13-2012, www.staradvertiser.com
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Saturday, August 11, 2012

Pacific Office Properties Post Quarterly Profit

The Pacific Office Properties Trust Inc. announced that they had a $1.6 million profit during the second quarter of 2012. This was a huge improvement as compared to the $11.5 million net loss that they posted during the same quarter a year prior. Most of the company’s gains came from the sale of the First Insurance Center on Ward Avenue, which sold for $70.5 million. Pacific Office Properties had a $5.4 million gain with that sale, which covered the $4.3 million loss from continuing operations.

According to their report, the Pacific Office Properties still owns four properties outright in Honolulu. These include Waterfront Plaza, the Davies Pacific Center, the Pan Am Building and the Clifford Center. In addition to these four properties, they have partial stakes in 16 other properties in California, Arizona and Hawaii.

Source: Honolulu Star Advertiser, 8-11-2012, www.staradvertiser.com
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Friday, August 10, 2012

Honolulu Rail Project – Additional Seats To Be Added To Rail Trains

The Honolulu Authority for Rapid Transportation has stated that they will be adding ten additional seats in each of the eighty rail cars in the Honolulu Rail Project. Previously, each of the two-car rail trains were designed to hold 242 standing passengers and had seats for 76 passengers. Now the two-car rail trains will hold 222 standing passengers and have 96 seats. These additional seats would cost the city a total of $1.5 to $1.9 million. Executive Director for HART, Daniel Grabauskas, stated, “The public has told us that they would like more seats on the trains and we’ve listened. The increased seating will be designed to enhance the riding experience and to increase passenger comfort.”

Also under consideration is suggestion to add fare gates to each of the 21 rail stations. The original plan called for the system to be “open” and have no gates or turnstiles. Rail employees would randomly go through the train cars and ask for passengers to provide proof that they had paid. However, Grabauskas would like to have the city install fare gates that would help insure that passengers pay before stepping onto the trains. Grabauskas added, “Frankly, if there’s one place where I don’t want armed inspectors challenging people to demonstrate that they’ve paid their fares, it’s the land of aloha. I mean, it just doesn’t feel very aloha to me.”

Source: Honolulu Star Advertiser, 8-10-2012, www.staradvertiser.com
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Thursday, August 9, 2012

Pagoda Hotel Conversion to Satisfy Affordable Housing Requirement

The Hawaii Community Development Authority has announced that they have given approval to Kamehameha Schools, allowing the proposed conversion of the Pagoda Hotel to count towards a required number of affordable housing units in Kakaako. Kamehameha Schools plans to build a total of 2,750 new homes/condo units in seven high rise buildings in Kakaako over the next eight to twelve years. In order to satisfy state regulations, 550 of these units would have be considered affordable for moderate-income residents.

Kamehameha School had stated earlier this summer that they would convert one of the two buildings at the Pagoda Hotel into a 162 unit property to be renamed Rycroft Terrace. The fee-simple units would be priced between $118,000 to $263,950 per unit and thanks to the Hawaii Community Development Authority’s ruling, would count towards the 550 affordable units. A total of 66 of the units are studios between 304 to 321 sq ft in size. 76 of the units are one-bedroom and would be between 495 to 616 sq ft in size. 20 units have two bedrooms and would be between 649 to 737 sq ft in size.

Source: Honolulu Star Advertiser, 8-9-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Wednesday, August 8, 2012

Honolulu Rail Project – Honolulu Mayor Primary This Saturday

The primary election for Honolulu Mayor is set for this Saturday, August 11, 2012. In order for one of the three primary candidates to win outright during the primary, they would have to receive greater then 50 percent of the total vote. If none of the three candidates hits that number, the top two finishers will face off during the general election in November. Former Governor Ben Cayetano is leading significantly in the polls over current Mayor Peter Carlisle and former city Managing Director Kirk Caldwell. However, it is unclear if Cayetano will be able to capture greater than 50 percent on Saturday.

Source: Honolulu Star Advertiser, 8-8-2012, www.staradvertiser.com
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Tuesday, August 7, 2012

Kauai Real Estate – Statistical Data for July 2012

Source: Hawaii Information Service

Single Family Home Sales for the Island of Kauai:
July 2012 – 37 Homes Sold – $407,500 Median Price
July 2011 – 35 Homes Sold – $430,000 Median Price

Condominium Sales for the Island of Kauai
July 2012 – 17 Condos Sold – $252,800 Median Price
July 2011 – 22 Condos Sold – $207,450 Median Price

Source: Honolulu Star Advertiser, 8-7-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Big Island of Hawaii Real Estate – Statistical Data for July 2012

Source: Hawaii Information Service

Single Family Home Sales for the Big Island of Hawaii:
July 2012 – 134 Homes Sold – $256,500 Median Price
July 2011 – 126 Homes Sold – $227,500 Median Price

Condominium Sales for the Big Island of Hawaii:
July 2012 – 54 Condos Sold – $217,500 Median Price
July 2011 – 57 Condos Sold – $155,000 Median Price

Maui Real Estate – Statistical Data for July 2012

Source: Realtors Association of Maui

Single Family Home Sales for Maui:
July 2012 – 71 Homes Sold – $491,000 Median Price
July 2011 – 68 Homes Sold – $394,500 Median Price

Condominium Sales for Maui:
July 2012 – 73 Condos Sold – $320,000 Median Price
July 2011 – 98 Condos Sold – $320,000 Median Price

Sunday, August 5, 2012

New Korean T.V. Hotel Channel Launched

The Korea Travel Network, or KTN, will be a brand new hotel-only television station to serve the Korean tourism market in Hawaii. The station be shown in approximately 100 hotels throughout the state in approximately 33,000 hotel rooms. KTN will provide Korean national news, Korean dramas and programming, and tourism information. Currently, there are four daily flights from South Korea to the Hawaiian Islands.

Source: Honolulu Star Advertiser, 8-5-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Saturday, August 4, 2012

Honolulu Rail System – Costs Increase in Latest Estimates

According to a report released by the City and County of Hawaii, the Honolulu Rail Project is still within its overall budget of $5.26 billion. However, design and construction costs have increased by $160 million since the last estimate given in the fall of 2011. Officials are quick to assure the public that the rail project has a large cash cushion or “contingency fund” that can be used to cover unexpected cost increase and expenses. However this large increase is causing concern that the project cash reserves may be used up before too long.

Originally, the city had stated that they had nearly $1 billion in their contingency reserve to pay for any unexpected costs. This amount had decreased to $815 million in September 2011. In the financial plan released in June 2012, that amount had decreased to $644 million. Executive Director for the Honolulu Authority on Rail Transit, Daniel Grabauskas, did not seem concerned about this spending and felt that the budget was appropriate for this stage of the project. Grabauskas stated, “At this point we’re feeling very good about the fact that we are within the range that FTA has set, and based on the foreseeable future of what is known, we are going in with a very strong amount of contingency.”

Source: Honolulu Star Advertiser, 8-4-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Office Building Converted to Medical Condominium in Aiea

Developer Peter Savio has announced that he will be taking the Newtown Square office complex in Aiea and converting it into a condominium for medical professionals. Savio purchased the property from Kamehameha Schools for $15 million and will spend approximately $30 million on renovations as well as building a new 300 stall parking garage. According to Savio, 80 to 90 percent of the units have already been committed to doctors, dentists and other medical professionals who wish to own their own office space. The building will be renamed the Mary Savio Medical Plaza at Newtown, after the developer’s late mother.

Friday, August 3, 2012

Jetstar Airlines to Add Melbourne to Honolulu Flights

Jetstar Airways has announced that they will be adding a new route from Melbourne, Australia to Honolulu starting in December 2012. According to the press release, there will be two flights per week initially, though this should expand to three flights per week in March 2013. The Hawaii Tourism Authority believes that this route will help to generate $59.1 million in annual visitor spending and $6.4 million in tax revenue. President and CEO of the Hawaii Tourism Authority, Mike McCartney, stated, “The timing of this flight coincides with Australia’s summer holiday season, which will help to further increase visitor arrivals and generate incremental spending and tax revenues for our state.”

For 2011, visitor arrivals from Australia hit a record 189,246, up 32.3 percent from 143,096 in 2010.

Source: Honolulu Star Advertiser, 8-3-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Queens Medical Center to Purchase Hospital

The Queen’s Medical Center has announced that they will be purchasing and renovating the Hawaii Medical Center-West in Ewa for a total of $73.2 million. The land and building will be purchased for $21.2 million while $25 million will be spent on renovations. Another $27 million will be spent on purchasing new equipment for the facility. The hospital is scheduled to reopen in August 2013 and Queens announced that they will hire approximately 400 employees.

Thursday, August 2, 2012

Hawaii Bankruptcy – Filings Down in July 2012

According to data provided by the U.S. Bankruptcy Court, the number of filings in July 2012 by 26 percent as compared to the same month a year prior. A total of 199 cases were filed last month, as compared to 268 cases in July 2011. This represented the 17 consecutive month of decreases from its peak in 2010. It should be noted, however, that prior to the recession, the average number of filings were 117 cases per month, as compared to the 223 cases filed per month so far this year.

Honolulu County saw a 24 percent decrease to 127 cases filed in July. Maui County saw a 28 percent decrease to 33 filings. Hawaii County (Big Island of Hawaii) had an 11 percent decrease to 31 filings. Kauai Count had a 58 percent decrease with 8 filings.

Source: Honolulu Star Advertiser, 8-2-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Rail Project – Pacific Resource Partnership Spends Over $1 Million in Advertising

The Pacific Resource Partnership have been strong supporters of the Honolulu Rail Project over the past few years. Therefore, it comes as no surprise that they have been very concerned about the upcoming Honolulu Mayor election. Two of the candidates, current Mayor Peter Carlisle and former managin director Kirk Caldwell support rail, but former Governor Ben Cayetano has promised that if elected he would do everything in his power to end the project. As a result, the Pacific Resource Partnership has spent over $1 million in advertising during this election, most of it focused on Cayetano.

Executive Director for the Pacific Resource Partnership, John White, stated, “We are giving voice to the many people in our industry and throughout Oahu that do not want to return to the corrupt days of ‘pay-to-play’ that flourished under Ben Cayetano. Cayetano, through his cronies and intermediaries, have tried to bully and intimidate us into silence. Voters deserve to know the full truth of Cayetano’s record as governor.” It should be noted however, that the Campaign Spending Commission had never found anything illegal about any of Cayetano’s actions.

Just as a comparison, Kirk Caldwell has raised a total of $875,500 for his campaign and still has $133,300 in cash on hand. Peter Carlisle has raised $739,300 total and has $118,000 in cash on hand. Ben Cayetano has raised $950,500 total and has $315,550 in cash on hand.

New Tour Package from China to Help Hawaii’s Economy

China International Travel Service (CITS) is the largest travel company in their country. CITS has just announced that they have created a new partnership with Hawaiian Airlines and Hilton Hawaii to provide a new tour package to the islands that is expected to bring thousands of additional visitors to the state. Hilton Hawaii’s area vice president, Jerry Gibson, was excited about the new turn of events stated, “With the increase in numbers from China that we have seen so far, there is huge potential for exponential growth in the coming years in both transient and group business.”

According to the Hawaii Tourism Authority a total of 81,738 visitors came to the Hawaiian Islands from China in 2011. However, according to their projections, the HTA believes that number will increase by 39.7 percent in 2012. Vice president for the Hawaii Tourism Authority’s brand management, David Uchiyama, stated, “The per-person, per-day spend of $396 is the highest of any market that we have.”

Wednesday, August 1, 2012

Hotel Industry Sets Records for First Half of 2012

According to a report released by Smith Travel Research and Hospitality Advisors LLC, the Hawaii hotel industry has set new records in terms of revenue for the first half of 2012. The hotel industry receive a total of $1.6 billion in revenue during the first six months, which was an increase of 14.8 percent as compared to the first six months of 2011. Occupancy across the state increased to 77.1 percent (4.6 percent gain) with an average daily rate of $201.32 (7 percent gain). Revenue per available room aso increased by 13.8 percent to $155.22.

While the increase in occupancy and revenue is great news for the hotel industry, experts also note that operating expenses have also increased over the last few years. Hilton’s Regional Vice President of Sales and Marketing for Hawaii, Jon Conching, stated, “The current gains have been excellent, but we still have ground to make up, considering the previous three years of minimum ADR growth and increased operating expenses.”

Source: Honolulu Star Advertiser, 8-1-2012, www.staradvertiser.com

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®

Global Executive Realty, LLC

www.myhawaiihomesearch.com

www.myhawaiicondo.com

www.myhawaiidreamhome.com

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