Hawaii Tourism Authority to Spend More Marketing to International Community

The Hawaii Tourism Authority has announced that they will be increasing their international marketing budget by about $1.3 million in 2015 as part of their hope to create a more balanced tourism industry.  The state agency currently spend about $12.1 million per year on their international marketing, but feel that this is still the best avenue to increase revenue for the state. David Uchiyama, the vice president of brand management for HTA, stated, "Growing international markets helps us diversify and takes into perspective the carrying capacity of Hawaii and the desire to continue to grow expenditures over arrivals. Further expansion into Hong Kong and Southeast Asia will help round out our exposure, especially into the Asia-Pacific. It costs us about $5.48 in marketing to bring a North American visitor to Hawaii and about $5.10 to bring an international visitor here. Also, international visitors tend to spend more on a daily basis than their North American counterparts. For instance, in 2013 North American visitors spent $171.10 per day, while our international visitors spent $267.10."

The North American market will continue to remain the core market for Hawaii, and the Hawaii Tourism Authority spends approximately $29.7 million per year getting people from the mainland United States to visit the islands. Uchiyama added, "North America remains a very important market for us. It's really the foundation that allows us to build on all other markets. We are looking right now at a proposal from the Hawaii Visitors and Convention Bureau to add about the same amount of incremental funding to that (the North America) market, too."

Source: Honolulu Star Advertiser, 8-30-2014, www.staradvertiser.com
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Howard Hughes Requesting Clarification on Affordable Housing Rules in Kakaako

Under the current rules established by the Hawaii Community Development Authority, at least 20 percent of high-rise condominium units developed in Kakaako must be deemed "affordable" for residents earning no more than 140 percent of the annual median income of Honolulu.  This is approximately $94,000 for a single person or $134,000 for a family of four. However, developers may instead satisfy this 20 percent rule by offering rental units for residents earning no more than 100 percent of the median income for at least 15 years.  This is approximately $67,000 for a single person or $96,000 for a family of four.

The Howard Hughes Corp has submitted a petition to the Hawaii Community Development Authority asking the agency if they could offer rental units for residents earning no more than 100 percent of the median income for at least 30 years.  Their hope is that by doing so, they would have to make less than 20 percent of their total project affordable and allow for even more luxury condominiums. If this is allowed, Hughes Corp would change their planned affordable tower at 988 Halekauwila Street (formerly 404 Ward) from condos to rentals.

The 988 Halekauwila Tower was approved to have 424 condo units, of which 375 were going to qualify as affordable housing.  This equates to approximately 9 percent of the Hughes Corp's Ward Village's 4,300 units that are planned for 22 towers.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
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Hawaii Tourism Authority Hopes To Attract Additional Airlines to Service Hawaii

The Hawaii Tourism Authority stated that they are currently speaking with about a dozen different new airlines, with hopes that they will eventually offer service and routes to the Hawaiian Island.  While visitor arrivals and spending continues to set records for the third year in a row, tourism industry officials argue that they can not become complacent.  Brad DiFiore of Ailevon Pacific stated, "You're in a competitive marketplace for air service. Airlines move airplanes around all the time. It's very, very easy. You have to fight for (Hawaii) all the time. Don't give up on us, and don't take it for granted because I absolutely assure you that there are plenty enough stations out there that are fighting for the same service and spending big dollars to do it. We don't have to buy it, but we sure have to fight for it."

HTA estimates that the total air seats to Hawaii will have increased by 3.9 percent in 2014. The Hawaii Tourism Authority has not announced what percentage of air seats they would like to go up by in 2015.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
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Sand Island Proposed as Temporary Site for Oahu's Homeless

The City and County of Honolulu is currently under negotiation with the state of Hawaii to use Sand Island as a temporary site for Oahu's homeless individuals and their families to set up their tents and receive help from service providers.  Under the proposal submitted by the mayor's office, the site will only be used for about 12 to 18 months, and would only be in place until permanent housing options under the Housing First program can be built.  It has been stressed that Sand Island will not be a "safe zone" or a "tent city", but rather a temporary shelter site that would include bathrooms with showers, security, transportation, hygiene centers and storage space.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
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Hawaii Tourism in 2014 on Track to Beat Records Set in 2013

According to a report released by the Hawaii Tourism Authority, the state of Hawaii is on track in 2014 to beat records that they set in 2013.  For the month of July, visitor spending was up 2.6 percent to $1.35 billion and arrivals were up 2.5 percent to 772,106.  Mike McCartney, the president and CEO for HTA, commented, "Honolulu is ranked as the fourth busiest international port of entry for the U.S. We have 975 flights per week connecting 48 cities worldwide by 21 carriers. Our focus will be to ensure there is sufficient demand to sustain this increase in seats from our core U.S. market."

Keith Vieira, the principal of KV & Associates, Hospitality Consulting, commented, "Overall, the visitor industry performance is really positive for the state. Pockets like Kona and Kauai may still have a tough time because they rely more on the group market and it's not as strong as it needs to be. However, in general, we'll see positive growth in 2014, just not as strong as we saw in 2013 or 2012." 

Kelly Sanders, the area managing director of Waikiki for Starwood Hotels and Resorts, added, "We started to see a slow recovery in April, which along with May and June had a decline. Summer has rebounded to be better than last year, but we are concerned about fall. As we move into October and November, pace numbers and advance bookings are softer this year than they have been in the past," he said. "On the Japan side, we think it's mainly due to a less favorable exchange rate and a higher consumption tax. Also, the Korean market is down because we mainly depend on the honeymoon market and this year, due to the lunar cycle, is considered an unfavorable time to get married."

Source: Honolulu Star Advertiser, 8-28-2014, www.staradvertiser.com
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Hawaii Hotels Set Several Records in June 2014

According to a report released by Hospitality Advisors LLC, Hawaii hotels set several records in June 2014. Occupancy statewide was at 76.3 percent while room revenue reached a new high of $289 million thanks to a 3.3 percent rise in average daily rate to $235.82.  Revenue per available room (RevPAR) increased by 3.9 percent to $179.93, also a June record.  Joseph Toy, the president and CEO for Hospitality Advisors LLC, stated, "In March, April and May, the industry was concerned because the booking pace had fallen and people were waiting to purchase until closer to their arrival dates.  There were concerns about summer, but everyone has been pleasantly surprised by the strong pickup over the last four months."

David Caret, the president and CEO of Outrigger Enterprises Group, commented, "We're cautiously optimistic about the balance of the year.  We've seen some velocity in bookings and some recovery from the softness in the first part of the year that wasn't as soft as we originally thought. So far so good. I think next year's going to be OK, too."

Source: Honolulu Star Advertiser, 8-28-2014, www.staradvertiser.com
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Hawaiian Electric Company Proposes New Energy Plan

The Hawaiian Electric Company has proposed a new energy plan that will help reduce Hawaii's dependency on fossil fuels and transition into using more renewable energy sources.  Under goal is to have HECO generate 65 percent of its energies by 2030, which would mean tripling the amount of solar power currently generated and thereby cutting the avergage bill for customers by 20 percent. However, upon closer review of the 2,731 page plan that was submitted to the state Public Utilities Commission, some local businesses and residents are unhappy with what they are reading.  For example, HECO has proposed a $55 monthly fee for each residential customer starting in 2017 as well as an additional charge of $16 for new photovoltaic customers.  HECO stated that by having the monthly fee of $55, Oahu customer would pay approximately 26 cents per kilowatt-hour, a significant decrease from the 34 cents per kilowatt-hour that they currently pay.  However, many residents do not like the idea of paying this minimum monthly fee.

Below is a summary of the proposal for non-solar customers and solar customers:

FOR NON-SOLAR CUSTOMERS
* 20 percent lower electric bill by 2030.
* $55 charge added to all customers’ monthly bill starting in 2017; but current average charge of 34 cents per kilowatt-hour will drop to 26 cents in 2017.

FOR SOLAR CUSTOMERS
* $55 charge added to monthly bill starting in 2017; current minimum bill is about $17.
* $16 monthly charge added to new solar customers’ bills in 2017.
* 16 cents per kilowatt-hour paid to new solar customers for excess power, down from more than 30 cents paid now.
* One-time installation charge for new solar customers, amount yet to be determined.

The state Public Utilities Commission will be holding hearings open to the public to review HECO's plan.  

Source: Honolulu Star Advertiser, 8-28-2014, www.staradvertiser.com
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Hawaiian Electric Company Offers Ambitions Renewable Energy Plan

The Hawaiian Electric Company has submitted a 2,731-page proposal to the Public Utilities Commission which includes the most ambitious renewable energy plan in the country. The goal is to have 65 percent of its power coming from renewable energy sources by 2030, which would help to cut customer bills by 20 percent.  The remaining power plants would be switched to liquefied natural gas, which is more energy efficient then the current method of burning oil.  The proposal states, "Our vision is to deliver cost-effective, clean, reliable, and innovative energy services to our customers, creating meaningful benefits for Hawaii's economy and environment, and making Hawaii a leader in the nation's energy transformation. Most existing oil-fired generating units will be converted to run on LNG. Older generating units will be deactivated by 2030 as new, more-efficient, quick-starting LNG fueled generators come online."

The state adopted the Hawaii Clean Energy Initiative in 2008 with the goal of getting 40 percent of its energy from renewable sources by 2030.  As of 2013, a total of 18 percent of energy comes from renewable sources.

Source: Honolulu Star Advertiser, 8-27-2014, www.staradvertiser.com
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Honolulu City Council Considers Raising Smoking Age to 21

The Honolulu City Council's Public Safety and Economic Development Committee is considering a bill that would raise the legal smoking age to 21 for the island of Oahu. Bill 51 would also bar anyone under 21 from buying e-cigarettes or any other electronic smoking devices. Reaction to this bill is mixed, with many arguing that after someone turns 18, they are responsible adults and are capable of making decisions on smoking for themselves. Supporters of the bill noted that Hawaii County, New York City and four states have adopted similar legislation and would help to discourage youths from the habit.  The Honolulu Police Department did not comment on the bill, but stated that they would enforce the law if it is passed.

Source: Honolulu Star Advertiser, 8-27-2014, www.staradvertiser.com
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Honolulu City Council Looks at Five Bills That Would Have Major Impact on the Homeless

The Honolulu City Council's Zoning and Planning Committee will be looking at five bills which, if made into laws, would have a huge impact on the homeless population of Oahu.  Three of the bills are focused on banning lying and sitting on public sidewalks in various areas around Oahu, with Bill 42 focusing on restrictions in Waikiki, Bill 45 imposing it island wide, and Bill 48 focusing on business districts in downtown Honolulu.  Meanwhile, Bill 43 would ban urinating and defecating in public areas of Waikiki, while Bill 46 would impose the same ban island wide.

Supporters of the bills state that the sidewalks should belong to pedestrians and that Oahu's sidewalks should be clear and clean for residents, businesses and visitors to use.  Opponents of the bills argue that they unfairly target the homeless population and the city should create shelters and services to help the homeless.  One online petition against the bills states, "The sidewalks are the only public place left for displaced persons to legally exist.  Those seeking this criminalization cannot succeed without the majority of local working-class people buying into their propaganda that displaced families threaten the livelihood of our state, which they clearly do not."

Source: Honolulu Star Advertiser, 8-26-2014, www.staradvertiser.com
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Federal Emergency Management Agency Remaps Flood Zones

The Federal Emergency Management Agency (FEMA) has remapped the "high-risk" flood zone for the island of Oahu, leaving many residents furious at the higher insurance premiums that they will have to pay.  According to federal officials, approximately 1,000 properties will be affected by these new changes, and most of these will now be required to have federal flood insurance. Troy Sumic, a Waimalu resident for over 30 years who now will have to pay for insurance, stated ,"I'm kind of in shock. I'm kind of wondering how they came up with their assessment. We've never had a flood where I live." 

FEMA will offer insurance for owners that covers $250,000 to the property and $100,000 to its contents for approximately $500 per year.  However, if a homeowner's mortgage exceeds the $250,000 coverage, they may be required to obtain more from a private institution.  Property owners who believe that they were inadvertently placed in the high-risk flood zone may apply to FEMA and file for an amendment.  However, residents would be required to hire their own surveyor prior to submitting the amendment.

Source: Honolulu Star Advertiser, 8-25-2014, www.staradvertiser.com
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Hawaii Tourism Authority Sets Goals for 2014 and 2015

The Hawaii Tourism Authority expects to set new records in 2014 with an estimated 8.25 million visitor arrivals spending $14.69 billion.  However, for 2015, the HTA hopes for even better numbers and would like to have 8.41 million travelers visit the islands and spend $15.11 billion.  David Uchiyama, the vice president of brand management for HTA, noted that Hawaii's tourism industry had a very strong 2012 and 2013, but that the emergence of more competitive destinations have lured some domestic travelers away from the 50th state. Uchiyama stated, "Other destinations like Mexico and the Caribbean are trending behind us in the recovery and that's hurt us to a degree because they are very aggressive. Going into 2015 we'll see growth continue, but it's not going to be as big as it was in the past. It's no secret that the percentage of growth is starting to narrow. We'll end up ahead of 2013 in 2014, not as much as first projected but still decent growth."

Mike McCartney, the President and CEO of the Hawaii Tourism Authority, commented, "Just because we've reached record levels doesn't mean that we are out of the woods. Other countries are gaining on us. We cannot be complacent. We want to remind everyone that this is the time to work even harder."

Source: Honolulu Star Advertiser, 8-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Sales for The Lofts @ The Collection Begin Today

The Collection project in Kakaako has announced that sales will begin today for The Lofts @ The Collection.  The majority of the 27 units that are being offered are studios with approximately 475 sq ft in space and are priced between $349,000 to $375,000 Fee Simple.  There will be also three two bedroom units with approximately 800 sq ft priced between $540,999 and $580,000 Fee Simple. Prospected buyers started lining up at 1:00 AM on Friday for when the sales office opens at 9:00 AM on Saturday.

Sales in the Tower began in August 2013 and so far 65 percent of the 397 tower units have been sold.  The Collection will also have a third phase and will sell 16 town house units at some point. Construction for the entire project is expected to begin by the end of the year and will finish about two years later.

Source: Honolulu Star Advertiser, 8-23-2014, www.staradvertiser.com
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Electrical Rates Increase in August 2014

For the third month in a row, electrical rates for the island of Oahu have increased.  Customers will now pay 34.9 cents per killowatt-hour, up from 34.7 cents per kilowatt-hour posted in July. Lynne Unemori, the spokeswoman for the Hawaiian Electric Company stated, "Fuel costs, which currently make up more than 70 percent of the monthly electric rate, are largely the driver for the fluctuation from last month. We know how difficult high bills are for our customers. That's why we are so focused on cutting fuel costs through the use of cleaner, lower cost renewable energy and alternatives to expensive oil like liquefied natural gas."

Source: Honolulu Star Advertiser, 8-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Commercial Real Estate Sales at $2.22 Billion in First Half of 2014

According to Colliers International, a commercial real estate brokerage firm, investors spent a total of $2.22 billion in Hawaii during the first half of 2014 purchasing commercial properties such as hotels, offices buildings, and warehouses. The single largest sale was the leasehold purchase of the Royal Hawaiian Center in Waikiki by an affiliate of JP Morgan who spent $698 million. The Wailea Marriot Resort sold for $326 million and the Aston Waikiki Beach hotel sold for $183 million, rounding out the top three largest sales.  Colliers' report commented that the rising demand for Hawaii commercial properties is being fueled by growth in the local economy, low interest rates, more lending and tighter competition for commercial properties on the mainland. The report stated, "Investors seeking higher yields are now scouring secondary and tertiary markets for those properties that are diamonds in the rough."

Source: Honolulu Star Advertiser, 8-22-2014, www.staradvertiser.com
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Economic Forecast from the Department of Business, Economic Development and Tourism

The state Department of Business, Economic Development and Tourism (DBEDT) released their quarterly forecast which now projects that Hawaii's inflation adjusted gross domestic product will rise by 2.6 percent in 2014, a slight increase from the 2.4 percent forecast in May. DBEDT also noted that inflation for 2014 will be slightly lower at 1.5 percent, a decrease from the 2.1 percent projected earlier.  Inflation rates are expected to remain low for the next few years and rise 2.2 percent in 2015, 2.7 percent in 2016 and 3.2 percent in 2017.  Richard Lim, the director of DBEDT commented, "Hawaii's inflation rate (during the first half of this year) was lower than the U.S. average for the first time since 2003. At the same time, our labor market continues to improve. We are seeing a record-high labor force and workers employed during the first seven months of the year."

Visitor arrivals and spending are expected to hit a new record high for the third year in a row. As for construction, Eugene Tian, the chief economists for DBEDT, explained that there should be more construction activity in the near future.  Tian commented, "Construction will help the economy because, although tourism growth will be a record this year, the pace of that growth is slower."

Source: Honolulu Star Advertiser, 8-21-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Inflation Rises By Only 1.1 Percent During First Half of 2014

According to a report released by the U.S. Bureau of Labor Statistics, inflation for the city of Honolulu increased by only 1.1 percent during the first six months of 2014.  This was the first time in 11 years that Honolulu was lower than the U.S. rate, which was 1.7 percent during this same period.  Eugene Tian, the chief economists for the state of Hawaii's Department of Business, Economic Development and Tourism explained, "Hawaii inflation was higher than the U.S. for all these years until now. Inflation goes in cycles and now I think it will be lower than the U.S. for a while, maybe for 10 years. Low inflation is good for consumers because consumers will pay less and it also means that the real (inflation-adjusted) income for households is higher."

Tian added, "Low inflation is good for consumers but sometimes inflation is related to economic growth. Inflation always goes with economic growth but at this time we don't see that correlation yet because the economy is still doing good in the state."  Department of Business, Economic Development and Tourism forecast that inflation will be up a total of 1.5 percent for 2014.

Source: Honolulu Star Advertiser, 8-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Update on Hoopili Project in West Oahu

Honolulu's Department of Planning and Permitting will be meeting later this must to review the rezoning request for the Hoopili project in West Oahu  The 1,289 acres of land in question is currently zoned as agriculture, but developer D.R. Horton would like to build a total of 11,750 homes along with 3 million sq ft of commercial space, five schools, and 159 acres of commercial farms. Supporters of the development argue that it will provide jobs and additional homes that will help with Oahu's housing shortage. Opponents of Hoopili argue that it would reduce prime agricultural lands and increase traffic in the area.

Source: Honolulu Star Advertiser, 8-19-2014, www.staradvertiser.com
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Waikiki Visitor Industry Hopes to Address Chronic Homeless Problem

Waikiki officials are very concerned with the chronic homeless problem in their neighborhood and are attempting to work with the Institute of Human Services and the Honolulu City Council to alleviate the problem.  Rick Egged, the president of the Waikiki Improvement Association stated that they hope to join forces with IHS to create services to help house the homeless. Egged stated, "A team from IHS has met with visitor industry leaders and, based on the way that they have reacted, I'm very optimistic that we can get it up and running by Jan. 1."

The City Council's Zoning and Planning Committee plans to meet on August 28 to review two bills that would prohibit standing and lying on sidewalks as well as urinating and defecating in public areas in Waikiki.  Ikaika Anderson, the Zoning Chairman, stated, "I do believe that the public urination and defecation bills pertaining to Waikiki and islandwide need to pass, but I'm also convinced that the administration needs to give the Council a definitive timetable for Housing First. It's unacceptable when they tell us it will be implemented in August and a few weeks later we hear that it will be October at the earliest. The Council appropriated more than $47 million to implement an affordable housing and Housing First strategy, and I suggest that the mayor release these monies in a timely manner."

Mayor Kirk Caldwell disagrees, and feels that the city should not implement the bans until it can house all of the estimated 5,000 homeless on Oahu.  Caldwell stated, "What we are left with is a problem that continues to fester with no additional tools to improve the situation."

Source: Honolulu Star Advertiser, 8-18-2014, www.staradvertiser.com
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Clifford Center Office Building in Downtown Honolulu Sells for $9.3 Million

The Pacific Office Properties Trust has just announced that they will be selling the Clifford Center office building in downtown Honolulu to the McKinney Capital Group for $9.3 Million.  The 10-story building is located at 810 Richards Street.

Source: Honolulu Star Advertiser, 8-16-2014, www.staradvertiser.com
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Honolulu Rail Project - Construction Bids Much Higher than Anticipated

The Honolulu Authority for Rapid Transportation (HART) which oversees the Honolulu Rail Project, had budgeted $184 million, including contingency dollars, to build the first nine rail stations which would run from Kapolei to Aloha Stadium.  However, when they unsealed the bids from three local construction companies, the lowest one, from Nan Inc., came in at $294.5 million.  The other two, from Nordic PCL and Hensel Phelps came in at $312.3 million and $320.8 million respectively. Shocked by these much higher than anticipated construction costs, rail officials are uncertain if they will be able to deliver the entire project on budget.  Don Horner, the Vice Chairman for HART stated, "Clearly our estimates right now are suspect."

Dan Grabauskas, the Executive Director for HART blamed the fact that recent legal challenges halted constructed for more than a year.  Grabauskas believes that the construction market has shifted, and as a result companies can charge more money.  Regardless, it is unclear how much all of the construction projects will costs, and where the money to complete the rail project will come from.  HART had set aside $563 million for contingencies, but that amount is quickly being eaten away

Source: Honolulu Star Advertiser, 8-15-2014, www.staradvertiser.com
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Ko Olina Resort's Ihilani Hotel to Close Next Year - May Convert to Four Seasons

Jeff Stone, the developer for Ko Olina, has announced that the JW Marriott Ihilani hotel will be closing next year and the property will be converted to another luxury hotel, probably under the Four Seasons Name.  According to Stone, the property will be closed throughout 2015 and will reopen under "one of the top luxury resort brands in the world."  The 387-room Ihilani hotel was completed in 1999 and is still considered to be one of the top hotels in Hawaii, despite the fact that it is beginning to show its age.  Stone added, "I am deeply humbled by your support of our development plans throughout the years. We are confident this project will solidify West Oahu's recognition as a premier global resort location for future generations to enjoy and for your families to prosper."

Source: Honolulu Star Advertiser, 8-14-2014, www.staradvertiser.com
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Howard Hughes Corp Requests To Build Two More Condominium Towers on Ala Moana Blvd

The Howard Hughes Corp has submitted a permit application to the Hawaii Community Development Authority to build two additional condominium towers on Ala Moana Blvd as part of their redevelopment of Ward Centers. Under the proposal, the Ward Warehouse retail center would be demolished during the second half of 2015, and the two towers would be completed sometime in 2017.  The project will also include low-rise townhomes/villas that would front Ala Moana Blvd as well as retail space and a public open space that would include a waterway between the two towers.  The first public hearing will be held on October 1, 2014.

Source: Honolulu Star Advertiser, 8-13-2014, www.staradvertiser.com
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Only 122 New Foreclosure Cases Filed in June 2014

According to the state Judiciary, there were only 122 new foreclosure cases that were filed statewide in June 2014, down significantly from the 219 that were filed during the same month in a year prior.  However, local foreclosure attorneys believed that this massive decrease is probably due to a recent tweak to the state foreclosure law which states that the lenders' attorney must submit written affirmations stating that the lawsuits contain no false statements. The foreclosure industry speculates that there will be additional new cases once attorneys and lenders are able to adjust to this new change.

Source: Honolulu Star Advertiser, 8-12-2014, www.staradvertiser.com
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Honolulu City Trash Pickup to End for Nonresidential Buildings and Multi-Family Complexes After January 31, 2015

Honolulu City and County officials have announced that starting January 31, 2015, the city will no longer be offering trash pickup services to nonresidential and multifamily complexes.  This will mean that approximately 110 multifamily complexes and 80 schools, churches and other non profits will have to start paying for their own service.  Lori Kahikina, the director for the city's Environmental Services Department wrote letters to the affected properties which stated, "Your property has had the benefit of the city's refuse collection service at no charge for many years while other, similar privately owned properties have had to use private refuse hauling service." Kahikina noted that there are more than 4,000 multifamily buildings and condominiums whose owners are already paying for private service.

Some property managers are concerned that the cost of paying for private hauler will be prohibitive for their residents.  For example, the Arbors in Ewa complex stated that it would cost approximately $4,000 monthly for a private hauler to service their 18 trash bins.

Source: Honolulu Star Advertiser, 8-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Hawaii Hopeful That State Will Be Chosen for Barack Obama's Presidential Library

The Barack Obama Foundation has announced that thirteen organizations have submitted proposals to build the Barack Obama Presidential Library, and the final decision will be made, with input from the first family, towards the end of this year.  Five of the proposed sites are in Illinois, where President Obama launched his political career, though Hawaii and New York are also considered to be top choices.  Obama previously stated that he wanted his library to be an anchor for economic development while reflecting the values of his public-service career: expanding economic opportunity and promoting peace, justice and dignity around the world.  Hawaii officials estimate that a library in Honolulu would generate millions of dollars in revenue each year, would create nearly 2,000 permanent jobs and attract up to 800,000 visitors each year.  Shan Tsutsui, Hawaii's Lt. Governor stated, "Our global orientation, multicultural population, robust visitor industry and unrivaled natural beauty make Hawaii a logical destination to house and nurture the president's legacy."

Source: Honolulu Star Advertiser, 8-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Economic Effect of Hurricane Iselle Minimal

The state of Hawaii is considering itself very fortunate regarding Hurricane Iselle and economists believe that the economic effects of the storm will be very minimal.  The hurricane did cause damage to parts of the Big Island of Hawaii, but had became fair weak by the time it came to Oahu. Economist Paul Brewbaker of TZEconomics stated, "This storm's impact was negligible in terms of anything that would be material in a macroeconomic sense -- tourism, reconstruction, foregone economic output, etc. There was no substantial damage that would not have been associated with a vigorous tropical storm cell or a bad Kona storm."  A second storm, Hurricane Julio, is moving towards the Hawaiian islands, but weather forecasters believe that it will pass to the north of the islands and cause minimal impact.

Source: Honolulu Star Advertiser, 8-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Construction Industry Expected to Rebound in 2015

According to a report released by the University of Hawaii Economic Research Organization (UHERO) the construction industry is expected to rebound in 2015 and help stimulate Hawaii's economic recovery.  The report stated, "The building upturn has been slow to show up in construction jobs or in the contracting tax base. "However, overall permitting has been more positive. Considering the large number of planned condo projects on Oahu, rail construction and the need for single-family homes, we remain confident that much stronger performance is in the pipeline."  It went on to add that construction jobs will expand by about 7 to 8 percent in the 2015-2016 period.

Regarding tourism, UHERO predicts about a 1.0 percent growth in arrivals in 2014, and a 2.2 percent growth in 2015.  The report commented, "Better economic conditions in the U.S. and abroad will support some improvement, consistent with recent increases in scheduled airline seats. U.S. arrivals will firm while Japa­nese visitor numbers will be negative for the year. Visitors from other countries will rise fastest, but down from the heady rates of increase of recent years."

Source: Honolulu Star Advertiser, 8-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Real Estate Sales Data for Oahu for July 2014

Source: Honolulu Board of Realtors

Single Family Home Sales Data for the Island of Oahu
July 2014 - 300 Houses Sold - $683,500 Median Price
July 2013 - 290 Houses Sold - $647,500 Median Price

Condominium Sales Data for the Island of Oahu
July 2014 - 444 Condos Sold - $351,750 Median Price
July 2013 - 426 Condos Sold - $345,500 Median Price

Source: Honolulu Star Advertiser, 8-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Real Estate Sales Data for Maui for July 2014

Source: Realtors Association of Maui

Single Family Home Sales Data for the Island of Maui
July 2014 - 98 Houses Sold - $573,750 Median Price
July 2013 - 93 Houses Sold - $475,000 Median Price

Condominium Sales Data for the Island of Maui
July 2014 - 82 Condos Sold - $387,500 Median Price
July 2013 - 112 Condos Sold - $357,625 Median Price

Source: Honolulu Star Advertiser, 8-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Real Estate Sales Data for Kauai for July 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Island of Kauai
July 2014 - 35 Houses Sold - $495,000 Median Price
July 2013 - 40 Houses Sold - $432,500 Median Price

Condominium Sales Data for the Island of Kauai
July 2014 - 30 Condos Sold - $378,500 Median Price
July 2013 - 39 Condos Sold - $268,000 Median Price

Source: Honolulu Star Advertiser, 8-6-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Real Estate Sales Data for the Big Island of Hawaii for July 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Big Island of Hawaii
July 2014 - 178 Houses Sold - $329,000 Median Price
July 2013 - 162 Houses Sold - $289,950 Median Price

Condominium Sales Data for the Big Island of Hawaii
July 2014 - 53 Condos Sold - $377,000 Median Price
July 2013 - 65 Condos Sold - $259,000 Median Price

Source: Honolulu Star Advertiser, 8-6-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Tourism Arrivals and Spending Increase in June 2014

According to a report released by the Hawaii Tourism Authority, there was a 1.9 percent increase in the number of arrivals and a 0.3 percent increase in spending for the month of June 2014.  For the first six months of the year, arrivals were just 0.1 percent less than the same period in 2013, and visitor spending increased by 2.5 percent.  Mike McCartney, the president and CEO of the HTA stated, "Hawaii's tourism economy continues to fare well and is on pace with last year's record-breaking year in spending and arrivals."

Source: Honolulu Star Advertiser, 8-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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City Officials Concerned that Waikiki Not Ready for A Major Hurricane

Officials from Honolulu's Department of Emergency Management are very concerned that Waikiki, Oahu's most densely packed area, is not ready in the event that a major hurricane were to strike. While most of the hotels meet monthly to review and update their disaster plans, the Department of Emergency Management noted that most of the condominiums and apartment building have no such plan in place, and are encouraging them to get prepared.  Many of Waikiki's building were built before stricter building codes required more solid, concrete construction.

Steven Businger, a meteorology professor at the University of Hawaii admitted that a major hurricane hitting the islands is a rare event, but agreed with city officials that the public should be ready and have a plan.

Source: Honolulu Star Advertiser, 8-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Oahu Rental Market Continues to Skyrocket

According to a study created by Hawaii Appleseed Center for Law and Economic Justice, the "fair market rent" for a two-bedroom apartment in Honolulu County has increased nearly 70 percent since 2005.  This data, gathered from the Housing and Urban Development Department, states that a two-bedroom cost approximately $1,087 per month in 2005, and now costs about $1,833 per month.  In comparison, the Bureau of Labor Statistics noted that median wages increased by only 22 percent to $18.18 per hour during this same time period.

The biggest challenge is that very few condominium or single family homes are being built for people who earn less than the median income.  This is especially concerning considering that 43 percent of households in Hawaii rent.  State Senator Laura Thielen stated that policymakers need to ensure that local needs are met,  Thielen stated, "In this global economy you have a large number of people internationally who are bringing their resources to desirable cities and investing in real estate as a safe place to put their money. You see this in London, in New York, and I think you see it in Hono­lulu. Cities like London have seen a lot of their residents pushed out of the city and into other areas because of this buildup of pressure. The problem we have in Hawaii is, How far out can we be pushed? We're on an island."

One proposal to help with the shortage of affordable housing units include building "micro units" which would have less than 350 sq ft of space. These could work very well for young people, empty-nesters or seniors who no longer need as large of a space.

Source: Honolulu Star Advertiser, 8-2-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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