According to a report issued by the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate fell to 4 percent during November 2014. Eugene Tian, the chief economist for the state Department of Business, Economic Development and Tourism, commented, "It's very good news. The labor market has continued to improve and the labor market is in the best condition since the recession." Honolulu had the lowest unemployment rate at 3.8 percent. Maui County came in second at 4.2 percent. Kauai County and Hawaii County posted a 4.6 percent and 5.1 percent unemployment rates respectively. The national unemployment rate, in comparison, was 5.8 percent for November.
The Honolulu Rail Project is now estimated to be between $550 million to $700 million more than originally planned. Members of the Honolulu Authority for Rapid Transportation blamed the booming construction market to be the major source of the problem, and noted that construction companies came in with higher bids than what was anticipated. At this point, 40 percent of the work has yet to be contracted out, making critics of the Rail Project extremely nervous as to what the final price tag will be.
The city has several options to raise the additional money needed to complete the rail project. The first option is to attempt to extend the 0.5 percent general excise tax surcharge past its 2022 expiration date. Another suggestion was to divert more than $200 million in federal funds currently used to support the city's bus system. Finally, rail officials are suggesting splitting the work into smaller contracts, hoping that construction companies will offer more competitive bids.
The Hawaii Community Development Authority has announced that they have awarded nonprofit developer Artspace with a 65-year lease for a 30,000 sq ft lot on Waimanu Street to build loft-style apartments for low-income artists in Kakaako. The lease rent will be a nominal amount of $1 per year. Artspace plans to build an eight story building with a total of 84 rental units. They will be restricted to households earning 30 percent to 60 percent of Honolulu's median income. That equates to a maximum of $28,750 for a single person to $57,480 for a family of four. Monthly rent will be between $437 to $1,334 per month.
According to report released by Hawaiian Electric Company, the average customer will spend $197.32 for 600 kilowatt-hours in December 2014, which marks the first time since May 2012 that the average bill has been less than $200. Peter Rosegg, HECO spokesman, stated, "Most of the present fall in Oahu electric bills is due to less expensive fuel. A typical Oahu bill has dropped by almost $22 since September. Our goal continues to be lowering electric bills by adding renewable energy, with our commitment to 65 percent renewable energy by 2030. And we plan to use lower-priced, cleaner natural gas to replace imported oil, which remains volatile in price." Oahu residents paid 31.2 cents per kilowatt-hour in December 2014.
Hyatt has entered Hawaii time-share market with the opening of the Hyatt Kaanapali Beach, a Hyatt Residence Club Resort, on Maui. According to the announcement, there will be a total of 131 time-share units on the 40-acre Hyatt Regency Maui Resort and Spa. John Burlingame, president of Hyatt Vacation Ownership, commented, "Fifteen years ago we determined that there was an opportunity to build an additional project within the overall resort campus and we thought this would be a great addition. I think Hawaii is an important destination for people to buy and exchange to and if you talk to Interval International they would probably tell you that Maui in particular has the most demanded properties in the system."
According to Hospitality Advisors LLC, time-share units represents 15 percent of total resort accomidations in the state of Hawaii.
According to a report issued by the U.S. Bankruptcy Court, there were only 128 filings during the month of November 2014. This represented a decrease of 13.5 percent as compared to the same month a year prior Jack Suyderhoud, professor of business economic at the University of Hawaii at Manoa Shidler College of Business and an adviser to First Hawaiian Bank, commented, "Bankruptcies tend to track the economy, so it's not surprising that it's down when the economy is improving, which in terms of the labor market certainly has been the case. When you look at the GDP (gross domestic product) for the U.S. as a whole, 2014 is going to end up pretty good despite the weak start at the beginning of the year. To me it's not a surprise that bankruptcies are going down in this part of the business cycle. The data we're getting on the overall economy is pretty strong. The big question is how this will carry over into 2015 given weakness in Europe and Asia and the strength of the U.S. dollar."
Matson Inc. has announced that they will be reducing their fuel surcharge by 2 percentage points to 35.5 percent thanks to a recent decline in bunker fuel prices. The price change will take effect on December 21, 2014 and will mark the second consecutive decrease in less than two months. Dave Hoppes, Matson's senior vice president of Ocean Services, stated, "We are pleased to be able to make this downward adjustment to our fuel surcharge, which for most customers represents a reduction in shipping costs ranging from $40 to $70 per container. We have been encouraged by the recent moderation in bunker fuel prices, and remain focused on diligently exploring ways in which we can maximize fuel efficiency for our fleet."
Source: Honolulu Star Advertiser, 12-16-2014, 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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