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
www.myhawaiihomesearch.com
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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
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Nighttime Construction Approved for Ala Moana Center

The Hawaiian Dredging Construction Company has received a noise variance from the state of Hawaii to allow for some nighttime construction to begin at the Ala Moana Center. Their application stated that allowing night work would be in the public's interest, given the positive economic impact generated by the shopping mall.  The application stated, "The project will add more retail space and commensurate parking space to the most popular shopping attraction in the state of Hawaii, thus contributing to and sustaining and enhancing the local economy." When completed, the expansion on the mall's Ewa end will add an additional 650,000 sq ft of new retail space. The $572 million expansion project broke ground about a year ago and is expected to be completed by 2015.

However, residents living in 1350 Ala Moana and Uraku Towers, which both face the construction site, are very unhappy with the state's decision and had hoped that work could be completed during normal daylight hours., which is right across Piikoi Street from the mall, are very unhappy with the news.  Kaethe Kauffman, who resides in Uraku, stated, "It is unethical for their aggressive business plan to be done at the expense of significant physical suffering of nearby residents, which will happen with all-night work."

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
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The Kahala Hotel & Resorts Sells for $300 Million Leasehold

Resorttrust Inc., a Japanese based company, has announced that they have purchased the Kahala Hotel and Resort for $300 million Leasehold.  This equates to approximately $887,000 per room, which makes it the highest per-room price paid for any Oahu hotel.  Joe Toy, the president and CEO of Hospitality Advisors commented, "Four Seasons Resort Hualalai on the Big Island is the only property in Hawaii that ever traded for more money on a per-key (room) basis.  It went for $1.1 million per key, but it was fee simple. This property, on the other hand, is leasehold and it's a pure hotel transaction. The reaction from investors will be, 'That's a pretty high price.'"

The Kahala hotel's nightly room rate is currently about $495, with the resort's two-bedroom Presidential Suite going for about $4,000 a night ant its two-bedroom Imperial Suite going for about $10,000 per night. Keith Vieira, of KV and Associates, Hospitality Consulting, commented, "Since their average daily rate is no where near the $800 that you would expect to see for that price, I think it sends a message to others who are looking that there is strong faith in the continuation of the market on Oahu. It also speaks to the strength of Hawaii's time-share, vacation ownership and the condotel market. There is lots of demand as seen by the success of Trump and strong interest in the coming Ritz-Carlton towers. These kinds of owners usually have higher occupancies and can get more per key."

Source: Honolulu Star Advertiser, 8-1-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com