Another take on Hawaii Real Estate (Hawaiian Paradise Park, Nanawale Estates: sales, 2009, condos)

[cynmkolohe]

"Foreign Buyers Keep Hawaii Market Bouyant"

Click here to read article:
Foreign buyers keep Hawaii market bouyant - International Herald Tribune


This article highlights some interesting points:

1) A weakening US dollar has resulted in increased investment in Hawaii real estate by buyers from outside the US.

2) Officials are still working to get Approved Destination status from China, and South Korea is expected to get "visa waiver" status in 2008/2009.

3) Speculative development in the luxury market is increasing.

According to the article, although Oahu sales are down overall in terms of actual numbers as compared to 2006, the number of properties sold valued over $1 million is higher than last year (497 this year, 460 last year for the first 10 months of the year) and the length time these properties are on the market is shorter on average.

(I'll add that we are also seeing a shift in the strategy of some local builders here on the East side of the Big Island. Many are focusing on the more "affordable" home--building houses that can be listed for 199-250K. There are currently over 100 homes listed in Puna in the range of 169K-225K, quite a few of these are new construction homes.)

[willdufauve]

I lived on the big island 14 years ago. It has it's pros and cons. Sometimes I think about coming back and getting a lot, or a little shack in Pahoa to retire at. Could you tell me where the prices start these days?
Thanks

[cynmkolohe]

The prices will depend on the subdivision and size of lot...for example, there are lots in Nanawale Estates selling for around 10K right now (just under 9,000 sq ft), or you can look into some of the subdivisions with 1 or 3 acres and get a lot for 20-30K...Hawaiian Paradise Park and Orchidland are higher...

Is there any area in particular that you might be remembering or be curious about? Any preferences requirements regarding water (county or private v/s catchment)?

[JULANI]

Originally Posted by cynmkolohe

The prices will depend on the subdivision and size of lot...for example, there are lots in Nanawale Estates selling for around 10K right now (just under 9,000 sq ft), or you can look into some of the subdivisions with 1 or 3 acres and get a lot for 20-30K...Hawaiian Paradise Park and Orchidland are higher...

Is there any area in particular that you might be remembering or be curious about? Any preferences requirements regarding water (county or private v/s catchment)?

Nanawale Estates seems most affordable among all the divisions , I wonder why ?

[Ellwood]

The article is from a year ago, so I wonder how much information continues to apply to HI real estate today. Foreign markets are also suffering from the financial crisis today.

[kani-lehua]

prices continue to fall in the puna district. one developer told me that several of his homes were "over built." beautiful homes but out of our price range. i've been keeping track of several properties. don't know why being that we just purchased a home there for $185k on 3 acres.

[hotzcatz]

Foreign investors normally don't want to buy the smaller "regular" houses, they generally invest in the large fantasy estates and then don't live in them. That does provide employment for up to two dozen people per estate, though, maintaining the house and grounds.

The prices of regular houses have been dropping since employment has been dropping. Until the price of houses falls to where folks can afford to pay the mortgage with the amount they can make from being employed locally, the houses will have to sell to folks who have cash or have off-island income of some sort. I'm expecting house prices to reach what they were in 2001 or perhaps even less depending on how bad the economy gets on the mainland.

Your basic foreign investor isn't going to want to buy a house in a Puna subdivision since they can't secure the house while they aren't living in it (which is usually most of the time) and then there is the maintenance to deal with. Condos in Kona would be more of a foreign investor's purchase, I would think.

[cynmkolohe]

Originally Posted by hotzcatz

Condos in Kona would be more of a foreign investor's purchase, I would think.

Also North Kohala and Hawi...

[hotzcatz]

Well, it's two years since the original post and almost a year since the last several posts and land prices are still falling. The amount of available jobs are still falling, too.

Considering businesses are just as hard hit as regular people, kipkaboodle, I doubt a link to a loan company who will give them an advance loan on invoices sent out (accounts receivable) will be of much good when it pertains to buying property. Also that sort of lending isn't all that applicable to Hawaii since we have very little manufacturing. Most folks around here are on the paying end of invoices instead of the writing end of them.

[SkyBob]

Always the voice of reason, hotzcatz. I do appreciate your presence on this forum.