Backlash on Increased Property Tax Rate for Non Resident Owners

At the end of last 2013, the City and County of Honolulu passed a bill that increases the property tax rate for any non-owner-occupied homes on Oahu that valued at above $1 million. These properties, classified as "Residential A", are now required to pay $6 per $1,000 of assessed value as compared to the standard $3.50 per $1,000 of assessed value that owner-occupants are paying.  While city officials are defending the increase, many high-end property owners around Oahu are furious.  Some owners claims that they didn't realize that they were eligible for the home-owners exemption or didn't bother to claim it.  Others simply feel that the assessment is much too high.  So far almost 2,100 property owners have filed appeals with the state.

Source: Honolulu Star Advertiser, 7-31-2014, www.staradvertiser.com
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Royal Hawaiian Center Sold for $696.5 Million Leasehold

According to the Hawaii Information Service, the Royal Hawaiian Center has been purchased from J.P. Morgan Asset Management from Kamehameha Schools for $696.5 million Leasehold.  The sale included all of the mall buildings, but did not convey the underlying lands.  Kamehameha Schools has stated that they will not disclose the length of the lease, but it is generally speculated by real estate professionals that the lease will be for approximately 60 years.

Proceeds from the sale of the Royal Hawaiian Center will be reinvested to support Kamehameha School's operations.  The center was Kamehameha School's biggest single asset and the school decided to sell the property as a way of diversifying its roughly $9 billion investment portfolio.  Kamehameha Schools has announced that they would also be willing to sell the Hawaii Kai Towne Center and Windward Mall in Kaneohe in a similar leasehold sales transaction.  The value of these two properties combined is estimated at between $275 to $400 million Leasehold.

Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
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Hennes & Mauritz to Open Stores in Kapolei and Ala Moana

Hennes & Mauritz, also known as H&M, has announced that they will be building a second Hawaii location in Ka Makana Alii, the new regional mall in Kapolei, as would eventually like to build a third location in Ala Moana Center.  Ka Makana Alii is scheduled to open its first phase in 2016 and developer DeBartolo Development is excited to have H&M as one of their anchor tenants. Edward Kobel, the president and COO for DeBartolo stated, "H&M will provide easy access to contemporary fashion for area families, who will enjoy the convenience of having such a sought-after brand just minutes away."

H&M's first Hawaii location was built in the Waikiki Business Plaza earlier this year.  The store is reportedly doing very well.

Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Bike Lanes and Sharrows to Be Added in Kaimuki

Transportation officials for the City and County of Honolulu have announced that they will be working on making the Kaimuki neighborhood more bike friendly starting in late August or early September.  In some areas designated bike lanes will be added while in others "sharrows", or shared lanes" will be painted along the street shoulder to allow bicyclists to share the road. Currently, only 1.6 percent of Honolulu's commuters use a bicycle to get to work and the city hopes that number will increase with initiatives such as this one. Under the 2012 bicycle master plan, the city will add an additional 310 miles of bikeways within the next 30 years at a cost of $68 million.  For the current fiscal year, the city budgets approximately $2.4 million for bikeway-related projects.

Source: Honolulu Star Advertiser, 7-29-2014, www.staradvertiser.com
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Fewer Public School Teachers Leave by the End of 2013-2014 School Year

According to a preliminary report issue by the Department of Education, only 876 of the roughly 13,500 public school teachers left their jobs over the course of the 2013-2014 school year. Out of this, approximately 60 percent had resigned and 40 percent retired.  Sixteen of the teachers were terminated by the DOE.  These numbers are actually better than the last few years, where 1,030 teachers left during the 2012-2013 school year and 1,111 teachers left during the 2011-2012 school year.  Furthermore, the 876 teachers that are leaving this year represent less than 7 percent of the workforce, significantly lower than the national turnover rate for public school teachers of 17 percent.

Starting this fall, a teacher's evaluation rating will be tied to tenure, raises and termination, with the ratings based in part on how well students perform on tests.  Some experts are concerned that this would once again increase the number of teachers that decide to leave the Department of Education.  Donalyn Dela Cruz, spokeswomen for the DOE, stated that they were investing in creating a leadership pipeline to help retain teachers.

Source: Honolulu Star Advertiser, 7-27-2014, www.staradvertiser.com
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Update on Ola ka 'Ilima Artspace Lofts in Kakaako

Artspace, a Minneapolis-based nonprofit developer, hopes to build an eight-story building in Kakaako for artists to live in.  The project, called Ola ka 'Ilima Artspace Lofts, will feature a total of 84 units and will cost $37 million to build.  The Hawaii Housing Finance and Development Corp has approved $2.1 million in tax credits: $1.4 million in federal tax credits and $712,500 in state tax credits to help the project along.  The credits can be claimed annually for the next 10 years, giving them a face value of $21 million.  Artspace can in turn sell these credits to investors to help raise capital.  Greg Handberg, the senior vice president of properties for Artspace, stated, "This is the critical financing step in this project. This is the hurdle. We're off to the races."

Under their proposal, the lofts would be affordable for 65 years and restricted to households earning 30 to 60 percent of Honolulu's median income.  This equates to a maximum of $28,750 for a single person or $57,480 for a family of four.  Rent would range from about $437 per month to $1,334 per month.  Artists will receive a preference for tenancy, and this could cover a wide range of areas including literature, photography, architecture, singing, dancing, filmmaking, acting, and the teaching of art. Artspace hopes to begin construction next year and finish by late 2016.

Source: Honolulu Star Advertiser, 7-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Former Military Barracks at Barbers Point May Become Affordable Rental Apartments

A private developer is requesting permission to convert a former military barracks at the old Barbers Point Naval Air Station into affordable rental apartments.  The barracks, known as Building 77, is currently abandoned and consists of 204 vacant studios with shared bathrooms.  Under the proposal, the space will be completely redone into 500 sq ft one-bedroom apartments.  Residents who earn between 80 to 140 percent of Honolulu's median income will be allowed to submit applications.  In community in general is very supportive of the renovation project and believe the current building is an eyesore.  

Source: Honolulu Star Advertiser, 7-24-2014, www.staradvertiser.com
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Hawaii Has Nation's Highest Hotel Room Rates in May 2014

According to a report issued by Hospitality Advisors LLC, the state of Hawaii had the nation's highest hotel room rates in May 2014.  In May, the average daily rate was $218.64 and statewide the hotel occupancy was 72.7 percent.  The revenue per available room was $158.95.  Oahu continued to have the highest occupancy with 80.5 percent of their rooms filled.  Kauai came in second with 70.8 percent occupancy.  Maui had 67.3 percent and Hawaii Island (Big Island) had 53.2 percent occupancy rates.  Joe Toy, the president and CEO of Hospitality Advisors, commented, "The gap in occupancy between Oahu and Hawaii island is still more than 20 percentage points, but I think by 2015 we'll see that recovery has spread across all islands. It's still a very respectable market, but it's a different one than it was in 2013. Because there was so much pent-up demand last year, people were booking well in advance. The high occupancy filled in the shoulder seasons and caused more travelers to consider a neighbor island," he said. "Now the number of people booking hotels 90 days (before arrival) has softened. We are seeing more booking pickup 45 to 30 days out. With some of the pricing concerns, we should start to see some activity on Hawaii island, which is still a good deal. " 

Jerry Gibson, the area vice president for Hilton Hawaii, added, "We were pretty happy with the last two months. April is normally a pretty heavy convention month, and we had some of those. We also filled it in with good government business and a little bit of leisure travel." However, I don't think that April and May are necessarily indicators of where we'll go. In September we'll figure out if the back of the year will remain solid and if the Asian markets will keep up. Everybody has their conventions in place for the end of the third and last quarters, but the unknown is how the wholesale business will come in. We're hoping that it continues to get better."

Source: Honolulu Star Advertiser, 7-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaiian Airlines Has a Strong Second Quarter in 2014

Hawaiian Airlines has announced that during the second quarter of 2014, the company made a net profit of $27.3 million.  This is a huge increase as compared to the $11.3 million net profit that the airline posted during the same quarter a year ago.  Mark Dunkerley, the Chief Executive Officer for Hawaiian Airlines, stated, "Demand remains pretty strong in all of the geographies that we serve. Secondly, we've done a good job controlling our costs. And third, if you look at 2010, '11 and '12, we started a lot of new things (six new international routes), and it takes a while for them to settle in. Now in 2014 we're starting to enjoy the benefit of them maturing. Our financial results improved during the first half of the year and, barring any changes to the macro-environment or competitor behavior, we would expect to see strengthening in the back half of 2014.

Joseph Denardi with the Baltimore-based Stifel investment bank who tracks Hawaiian Airlines, commented, "It was better than we expected. I think the results benefited from some better revenue performance. They're seeing better pricing on some of their routes, and they're benefiting from some of the network cuts (Tai­pei and Fuku­oka, Japan) they made earlier this year. Competitive capacity trends (a pullback by competitors) have gotten a little bit better compared to last year. Overall, I think it was a pretty good quarter, and I think the decision with the A350 was smart and improves the longer-term outlook for the stock." 

Source: Honolulu Star Advertiser, 7-23-2014, www.staradvertiser.com
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Hawaii Electrical Rates Increase in July 2014

The Hawaiian Electric Company has issued a statement that electrical rates will be increasing to 34.7 cents per kilowatt-hour for July 2014.  Peter Rosegg, the company spokesman, stated that the increase was necessary because of additional money earmarked for the public benefits fund that oversees the energy efficiency programs, rebates and other things that Hawaii Energy operates.  Rosegg stated, "This is a percentage of each bill that Hawaiian Electric Cos. collect by order of the Hawaii Public Utilities Commission and pass in total to Hawaii Energy.  Once a year there is (an adjustment) to make sure the proper total amount has been collected (for the previous 12 months)."

Maui residents are paying 37.8 cents per kilowatt-hour.  Big Island of Hawaii residents are paying 41.5 cents per kilowatt-hour.  Kauai residents pay the most of the four major islands at 42.0 cents per kilowatt-hour.  Electrical prices in Hawaii are more than three times the national average primarily because Hawaii uses fuel oil for its power generation. Under the Hawaii Clean Energy Initiative, 40 percent of the state's electricity will have to come from renewable energy sources by 2030.

Source: Honolulu Star Advertiser, 7-22-2014, www.staradvertiser.com
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Hawaii's National Parks Brought in $312 Million in Economic Spending in 2013

According to a report issued by the National Park Services, the seven national parks in Hawaii brought in $312 million in economic benefit to the state and supported a total of 3,665 jobs in 2013.  The total number of visited dropped by 4.2 percent as compared to the prior year, but this was attributed to the 16-day government shutdown in October. Chris Lehnertz, the Pacific West Regional Director, stated, "The national parks of Hawaii attract visitors from across the country and around the world. Whether they are out for an afternoon, a school field trip or a monthlong family vacation, visitors come to have a great experience and end up spending a little money along the way."  Mike McCartney, the president and CEO of the Hawaii Tourism Authority, agreed and added, "The Hawaiian Islands are a one-of-a-kind destination from our vast natural environment to our diverse history."

Source: Honolulu Star Advertiser, 7-21-2014, www.staradvertiser.com
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Homeless Population in Kakaako Makai Becoming a Greater Concern

Kakaako Makai has been in the news recently due to the fact that the Office of Hawaiian Affairs had hoped to be allowed by the state of Hawaii to redevelop the neighborhood and add several high-rise condominium buildings. The state has since ruled that they will not grant OHA permission to build on this 44-acre ocean front parcel anytime in the immediate future. However, Kakaako Makai has recently been highlighted due to its increasing homeless population.  By one estimate, there were nearly 100 tents along the sidewalks and open spaces around the discovery center, the University of Hawaii John A. Burns School of Medicine, the UH Cancer Center and other buildings and parks in the neighborhood.

Officials with the Hawaii Community Development Authority, the state run organization that is responsible for the redevelopment of Kakaako, stated that they have recently received an increase in the number of complaints about disorderly conduct, public urination and defecation, as well as the fighting among the homeless.  As a result, the city is now doing twice-monthly police sweeps in which officers clear the sidewalks and confiscate belongs.  The HCDA is also increasing their own private security for Kakaako Makai.

Tracy Martin, a homeless man who has been living in Kakaako Makai with his wife and 2-year-old daughter for the last nine months, stated that the police sweeps are tough on his family and neighbors, because it costs him $200 to retrieve his belongs that the city confiscates from him. However, Martin likes the location and states, "It's centralized and close to doctors, preschools, agencies and jobs. I'm comfortable here. I know the area, and there are a lot of safe zones."

Source: Honolulu Star Advertiser, 7-20-2014, www.staradvertiser.com
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Hawaii's Economy Continues to Rebound

Hawaii's economy continues to rebound thanks to strong tourism and construction which has propelled housing prices to record levels on Oahu and pushed unemployment down to a six-year low.  First Hawaiian Bank issued a report that credit card sales increased by 5 percent during the second quarter of 2014 as compared to the same quarter a year prior. Bob Harrison, the President and Chief Executive Officer of First Hawaiian.Bank stated, "Tourism is still the driver. We've seen over a period of time strong growth in tourism, and now you're starting to see some individual consumer activities as people feel better about how they're doing. You're starting to see things like home furnishing and home improvement pick up. We've had a very good year so far, and we're continuing to expect modest growth in the 3 to 4 percent range. If we're fortunate and stay at the 5 percent to 6 percent level (in card transactions), I think that will be exceptional. But right now we expect to see modest growth through the end of the year."

First Hawaiian Bank is the largest bank in Hawaii with $17.3 billion in assets.

Source: Honolulu Star Advertiser, 7-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Second Ritz-Carlton Tower in Waikiki Approved

The City Department of Planning and Permitting has announced that they have approved the second Ritz-Carlton Residences Waikiki Beach luxury tower.  Developer Pacrep 2 LLC will be allowed to build a new 39-story, 350-foot tall mixed-use tower at 2139 Kuhio Avenue.  George Atta, the director for the DPP, stated, "In general the project will be of benefit to Waikiki, its businesses and nearby commercial establishments. Visitors will be welcomed at the project's ground level by an active landscaped open space featuring lush plant life, interactive uses, outdoor dining and gather space. The project will improve the streetscape along Kuhio Avenue, provide a pleasant pedestrian experience and promote social interaction."

Casey Federman, the authorized representative of Pacrep LLC's, stated, "Feedback from the community and DPP's guidance has resulted in a better plan overall for the Waikiki community. Our goal from the beginning was to create a landmark property and destination in Waikiki and also to lead the way in bringing new life and energy to an area of Kuhio Avenue that many feel needs revitalization."

Not everyone is happy with the decision.  Mark Harpenau, who lives at the Four Paddle condominium across from the Ritz-Carlton, stated, "It's too bad that the DPP wastes everybody's time because they obviously don't listen. There were strong negative comments from the Waikiki Neighborhood Board, and they ignored the Waikiki Special District guidelines. These are two massive ocean-facing buildings, and we're lucky we even got a 75-foot gap between them. It's not much. It's not really anything to be happy about. They've essentially given them carte blanche."

Source: Honolulu Star Advertiser, 7-19-2014, www.staradvertiser.com
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Hawaii's Unemployment Rate Holds Steady at 4.4 Percent in June 2014

According to a report released by the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate was at 4.4 percent in June 2014, exactly at the same level posted in April and May. In comparison, the seasonally adjusted unemployment rate for June 2013 was 4.7 percent.  Leroy Laney, a professor of economics and finance at Hawaii Pacific University, commented, "The overall unemployment rate is good news. It seems to be stabilizing around that rate, but that's not a bad number to stabilize at given the national unemployment rate and the unemployment rate at a number of other states. We're still near the bottom, and that's a positive sign for the economy.   There tends to be a labor shortage if it gets down to the 3 percent range, but I don't see the underlying strength of the economy being that strong. If construction were to have another shot in the arm from rail transit or something like that, that would put us over the top and lower the unemployment rate. An additional boost from tourism might make some difference, and let's not forget about the domestic sectors of the economy like business and professional services, education and health. Any of those things could contribute."

Honolulu County posted a 4.5 percent unemployment rate, Maui County had a 5.1 percent unemployment rate. Kauai County and Hawaii County (Big Island of Hawaii) came in at 5.4 percent and 6.6 percent respectively. County jobs data are not seasonally adjusted.

Source: Honolulu Star Advertiser, 7-18-2014, www.staradvertiser.com
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Honolulu Rail Project Will Go Through Middle of Honolulu International Airport

The Honolulu Authority for Rapid Transportation (HART) has announced that the Honolulu Rail Project will now go directly through the middle of the Honolulu International Airport and will be able to pick up and drop off thousands of passengers and airport workers there.  While it had been previously announced that the rail would stop at the airport, its exact location was still up for debate, and many worried that the station would be located several blocks away.  The station will now be between the airport's international and overseas parking structures, in easy walking distance to the main terminals.  Mayor Kirk Caldwell praised the location and stated, "They know they're going to arrive at the airport quickly, reliably and on time, with their luggage. I think the station is going to be bringing a lot more to the airport experience."

The Honolulu Rail Project will go from Kapolei to Ala Moana Center, which is a short distance from Waikiki.  City officials added that once the rail project has been completed, they would add additional buses from Ala Moana Center to Waikiki to make the rail viable for tourists visiting Oahu.

Source: Honolulu Star Advertiser, 7-17-2014, www.staradvertiser.com
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New Walgreens to Open in February 2015 on Keeaumoku Street in Ala Moana

Walgreens has announced that they will be opening a new store on Keeamoku Street in February 2015, but it is slated to be unlike any drugstore that Hawaii has ever seen. According to company spokesmen, this location will be a "Well Experience" flagship store which will have everything from fresh handmade sushi, poke bowls, bentos, a coffee and pastry counter, a juice bar, and self-serve frozen yogurt.   Gregory Wasson, Walgreen's president and CEO stated, "We are stepping out of the traditional drugstore format and creating something unique, new and special."

The new store will be just over 20,000 sq ft in size and will include a LOOK Boutique cosmetics department offering manicures.  The two story building has an additional three levels of parking over it and was designed to support a 20-story residential tower above that.

Source: Honolulu Star Advertiser, 7-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Castle Medical Center to Spend $28 Million in Renovations

Castle Medical Center has announced that they will be spending approximately $28 million to renovate their hospital and expand its emergency room.  Jasmin Rodriquez, the Castle spokeswomen, stated, "We continue to not only grow with new programs and services, but our ER has gotten more visits than we ever had before. With the growth of the Windward side and, of course, the elderly population getting older, we needed to really expand our ER services to meet the needs of our community."  The emergency room will expand from 18 beds to 25 beds. Renovations will begin in November of this year.

Source: Honolulu Star Advertiser, 7-16-2014, www.staradvertiser.com
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Air Force to Reduce Hawaii Staff and Troops by 238 Positions

The United States Air Force has announced that they will be forced to cut a total of 238 positions from Hawaii as part of their attempt to eliminate a total of 3,5000 positions worldwide over the next five years.  According to an Air Force spokesman, the 238 positions will include both military and civilian personnel, but added that they hope to offer incentives to civilians to either leave or seek an early retirement.  Deborah Lee James, Air Force Secretary, issued a statement regarding their global cuts: "We are aggressively pursuing reductions within the first year, rather than spread them out over five years as allowed by DoD. It's better for airmen because it provides them predictability and allows us to re-stabilize our workforce sooner."

Source: Honolulu Star Advertiser, 7-15-2014, www.staradvertiser.com
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New State Law Helps to Regulate Condo Association Boards

A new Hawaii state law has been passed help regulate how condominium association boards manage their properties and finances.  Financial records, association membership lists, and contracts for property management and maintenance must now be delivered to any owner within 30 days of their written request.  This is especially important for the state of Hawaii which has approximately 1,591 registered condo associations an more than 150,000 condominium units.  State senator Rosalyn Barker, the chairwoman of the Senate Committee on Commerce and Consumer Protection, stated, "These owners should not have to go to court or mediation to exercise their rights to these documents, records and information."

Technically, condominium owner's rights to these documents are not new, but were scattered in different sections of state condo law and at times seemed to contradict themselves.  The new law incorporates all of the document descriptions into one section of the law and adds the 30-day delivery requirement.  Condo associations an management firms can charge $1 per page to cover administrative and duplication costs.  Documents may also be delivered electronically or made available for free via download on the internet.

Source: Honolulu Star Advertiser, 7-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Tourism Data Actually Better Than Originally Reported

According to the Hawaii Tourism Authority, Hawaii's tourism industry has been doing much better than in 2014 than previously reported.  HTA officials announced that approximately $100 million was not correctly reported by contractor who was supposed to providing survey data to the state of Hawaii.  This means that visitor spending this year has actually increased by 3 percent instead of decreasing as originally thought. Mike McCartney, HTA president and CEO stated, "Visitor spending appears to be trending up for 2014." Visitor arrivals are still down by 0.5 percent through May.

Source: Honolulu Star Advertiser, 7-12-2014, www.staradvertiser.com
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Foreclosures Decrease to 79 Filed in May 2014

According to a report issued by the state Judiciary, there were only 78 new foreclosure suits that were filed statewide in May 2014.  This is less than a fourth of the 346 new cases that were filed during the same month a year prior and even much lower than the 211 to 250 new cases that were filed during the first four months of this year.  Experts are not sure why the rapid drop occurred, though the fact that Hawaii's economy is improving is helping homeowners maintain their financial health and stay out of mortgage trouble.

Source: Honolulu Star Advertiser, 7-12-2014, www.staradvertiser.com
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Regal Entertainment Group to Open 12-Screen Movie Theater at Kapolei Commons

The Regal Entertainment Group has announced that they will be opening a 12-screen theater at Kapolei Commons. According to their announcement, the 52,000 sq ft theater should open next year and will feature electric reclining seats and upgraded menu options.  Jerry Grewe, the vice president of real estate for Regal Entertainment Group, stated, "Regal is thrilled to be adding another fantastic entertainment option for our loyal customers on the island of Oahu. Regal Kapolei Stadium 12 will feature a new level of amenities for moviegoing." Regal currently operates nine cinemas in Hawaii and about 570 throughout the U.S.

Source: Honolulu Star Advertiser, 7-11-2014, www.staradvertiser.com
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Mililani Residents to Meet with Government Officials About Fire Ants

Last week, the state Department of Agriculture confirmed that at least eight homes on Auina Street in Mililani Mauka were infested with fire ants.  Members of the community are now arranging to meet with representatives from the state Department of Agriculture, the state Department of Land and Natural Resources, the state Department of Health and the Invasive Special Council to find out what can be done to prevent and treat the problem.  State Senator Donovan Dela Cruz stated, "We also want to give the community an opportunity to ask questions and share concerns. With this being residential areas, it's a serious discovery, and surely triggers a lot of fear and questions in people. The meeting is intended to bring awareness and set a community effort in motion to help the state combat little fire ants." 

Source: Honolulu Star Advertiser, 7-11-2014, www.staradvertiser.com
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Hawaiian Airlines Leads Nation with On-Time Arrivals

According to a report issued by the U.S. Transportation Department, Hawaiian Airlines leads the nation with on-time arrivals at 93.2% during the month of May.  The next closest airlines was Alaska Airlines at 89.7% followed by Delta Air Lines at 84.4%.  As a point of comparison, nationally, a total of 76.9 percent of flights arrived on time.  The airline industry stated that bad weather is largely to blame for the delayed or canceled flights in May.

Source: Honolulu Star Advertiser, 7-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Haseko Hawaii Proposes $87 Million Recreational Lagoon in Ewa Beach

Haseko Hawaii Inc. has announced that they would like to build an $87 million recreational lagoon as part of their Hoakalei Resort in Ewa Beach.  Haseko had previously planned to build a marina, but has since decided to abandon that plan stating that the public would be better served with a lagoon instead of a 600-slip marina and boat launch.  Under their new proposal, the lagoon will be designed for paddleboarding, kayaking and other nonmotorized watercraft, and there will also be a swimming cove to meet the needs of residents and the resort community.

Reaction to Haseko's announcement has been mixed.  Some residents are happy with the idea of a lagoon, while others complained that the main reason why they purchased properties at Hoakalei was because of the promised boat marina.  Haseko contends that there had been a weakened demand for boat slips and that there were some legal challenges from conservation and cultural groups in obtaining the right to build a marina.

Source: Honolulu Star Advertiser, 7-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Real Estate Sales Data for the Big Island of Hawaii for June 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Big Island of Hawaii
June 2014 - 170 Houses Sold - $300,000 Median Price
June 2013 - 177 Houses Sold - $350,500 Median Price

Condominium Sales Data for the Big Island of Hawaii
June 2014 - 53 Condos Sold - $268,000 Median Price
June 2013 - 62 Condos Sold - $196,000 Median Price

Source: Honolulu Star Advertiser, 7-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Real Estate Sales Data for the Island of Kauai for June 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Island of Kauai
June 2014 - 52 Houses Sold - $560,750 Median Price
June 2013 - 42 Houses Sold - $515,000 Median Price

Condominium Sales Data for the Island of Kauai
June 2014 - 35 Condos Sold - $349,000 Median Price
June 2013 - 43 Condos Sold - $267,000 Median Price

Source: Honolulu Star Advertiser, 7-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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DBEDT's Report on Kakaako

The State of Hawaii's Department of Business, Economic Development and Tourism issued a report on Kakaako, hoping to give the general public a better idea about why its redevelopment is both a good thing and a much needed project for Oahu.  According to the report, the development of Kakaako would help ease the housing shortage on Oahu as well as generate $5 billion worth of economic impact for the state.  DBEDT notes that once the first 11 residential condominium towers are completed over the next five years, the population of Kakaako will approximately double to just over 20,000 people.  

Source: Honolulu Star Advertiser, 7-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Oahu's Real Estate Market Rising

According to statistical data released by the Honolulu Board of REALTORS, Oahu's housing market has reached an all time record median price for single family homes and condominiums in June 2014.  The new record breaking median price for a single family home is $700,000, as compared to the previous record set in June 2007 of $685,000 while condominiums also set a record at $360,000, slightly beating the previous record set in February 2014 of $359,450. Julie Meier, the president of the Honolulu Board of Realtors, stated, "June was a remarkable month. This shows the very strong demand we're currently seeing for housing. That demand, coupled with low inventory, is what's causing the continued growth in median sales prices."

The University of Hawaii Economic Research Organization predicts that Oahu's single-family house median sale price this year will rise to about $710,000.  UHERO further predicts that in 2015, the state will see about a 9 percent gain and the median price will reach about $775,000. As for condominium prices, UHERO predicts that the state should see another 6 percent gain next year to about $375,000.  The University of Hawaii Economic Research Organization comments that fueling this growth are low interest rates, rising personal income and job growth, and relatively new housing inventory being added.

Source: Honolulu Star Advertiser, 7-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Real Estate Sales Data for the Island of Oahu

Source: Honolulu Board of Realtors

Single Family Home Sales Data for the Island of Oahu
June 2014 - 303 Houses Sold - $700,000 Median Price
June 2013 - 308 Houses Sold - $677,250 Median Price

Condominium Sales Data for the Island of Oahu
June 2014 - 411 Condos Sold - $360,000 Median Price
June 2013 - 392 Condos Sold - $330,000 Median Price

Source: Honolulu Star Advertiser, 7-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Foreclosures and Mortgage Delinquencies Decrease in April 2014

According to a report issued by the state Judiciary, there were just 191 new foreclosures cases that were filed in Circuit Court during April 2014.  This was a significant decrease from the 397 new cases that were filed during the same month a year prior.  Furthermore, CoreLogic Inc., a financial services firm, noted that only 4.9 percent of Hawaii homeowners were at least 90 days overdue on their mortgage payments, as compared to 5.9 percent from the same month in 2013.  Experts are pointing to these two indications as signs that Hawaii's economy is improving and state that Hawaii's lower unemployment rates, fewer bankruptcies, rising personal incomes, and higher real estate values are the reason why these numbers are decreasing.

Source: Honolulu Star Advertiser, 7-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Wal-Mart To Open Downtown Honolulu Location on Wednesday, July 9, 2014

Wal-Mart has announced that they will be opening its new downtown Honolulu location at Fort Street Mall on Wednesday, July 9, 2014.  There will be a Hawaiian blessing and maile lei ceremony from 7:30 AM until 8:00 AM.  The store will be open for business immediately after the ceremony.  The store will remain open daily from 6:00 AM until 10:00 PM. According to Wal-Mart spokesman David Sayre, the downtown Honolulu location will be approximately 80,000 sq ft in size.  The company has hired approximately 150 workers in the past few months for this store.

Source: Honolulu Star Advertiser, 7-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Update on The Waikiki Landing

The Waikiki Landing is a partnership between the state of Hawaii and Honey Bee USA INC. to redevelop the Ala Wai Small Boat Harbor.  However, Honey Bee has just announced that they have lost their major funder for the project, leaving them searching for a new source of financing to meet their contractual obligations with the state. Honey Bee is currently working with four different groups to secure $24 million of funding, and hopes to do so by the middle of this month.  Honey Bee has been paying the state approximately $37,000 per month in land and water rent since January 2014.  However, since they were unable to secure financing, they have missed their June deadline when rent increased to above $70,000 per month.When completed, The Waikiki Landing should have a new boat repair facility and fuel dock combined with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.

Debo­rah Ward, the spokeswoman for the Department of Land and Natural Resources stated that they would like to work with Honey Bee to make this project happen, but if Honey Bee is unable to comply with the terms, the lease could be terminated and a new proposal could take its place.  Ward stated, "If another (request for proposal) were to be issued, actual development could occur in a much shorter time period since the land use entitlements and approvals have already been obtained, the property has been cleared and graded, environmental issues have been addressed, foundation testing has been done and the parcels have been legally subdivided." Ward noted that Honey Bee has already paid the state more than $865,000 in rent and development fees and has cleared the property, removed contaminated soiled, razed a dilapidated boatyard building, secured various land use entitlements and approvals, and obtained city permits. Ward added, "All of this was done at Honey Bee's expense and at no cost to DLNR, the state, or the taxpayers."

Jeff Merz, a member of the Waikiki Neighborhood Board commented, "People hated the project at first, but they made changes and once the company started clearing land, the community seemed to accept it. The area is run-down and there's been crime. People understood that we needed something to energize the location. Now to be told that it could stay a big empty construction site for a longer period, the community won't like that."

Source: Honolulu Star Advertiser, 7-2-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaii County Now Prohibits the Sale of Tobacco Products to Anyone Under 21

Effective immediately, Hawaii County (Big Island of Hawaii) now prohibits the sale of tobacco products to anyone under 21, making them only the fourth municipality in the country to take this step.  The Hawaii County law will also prohibit the purchase of electronic cigarettes and all liquids for electronic cigarettes, regardless of whether they contain nicotine or not, to anyone under 21.  Anyone who turned 18 before July 1, 2014 is grandfathered in and are still allowed to buy tobacco products.  Jessica Yama­uchi, the director of the Coalition for a Tobacco-Free Hawaii was delighted by the news.  Yamauchi stated, "It is starting to catch on. Hawaii island is first (in the state). It was introduced at the state Legislature this past legislative session. It passed through one committee on each side and just didn't get another hearing. If you can prevent them from starting before the age of 21, there's very little chance they'll become regular, addicted smokers."

Under the new law anyone caught selling or distributing tobacco products of electronic smoking devices to an underage customer (under 21 years old) will be subject to a maximum $2,000 fine.

Source: Honolulu Star Advertiser, 7-1-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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