Japanese investors in Hawaii: Only keen on Oahu

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Japanese tourists were doing more ‘window shopping’ last year than they did the year…

Japanese tourists were doing more ‘window shopping’ last year than they did the year…

While Japanese investors are keen on Hawaii real estate, they are keeping their gazes focused on Oahu rather than the Neighbor Islands, according to a report from Title Guaranty.

Japanese investment in the Hawaii real estate market is surging. It is set to keep up the pace, spurred on by new projects in Oahu and Japanese institutional investors keen to snap up the new products.

However, looking beyond Honolulu, Japanese investors are less active. To the end of August this year, the investors bought just five of the 30 properties on Hawaii’s Big Island, one of the 12 properties sold on Maui and none of the properties on Kauai.

This does not come as a surprise to some experts. Mike Imanaka, Title Guaranty’s senior vice president of data services noted that this is in line with past statistics and so far the Neighbor Islands are not considered as much as Oahu.

To the end of the summer this year Japanese investors have purchased 191 properties in Honolulu or $147.7 million worth, according to data from Title Guaranty. This compares to 197 and 240 for the entire years of 2013 and 2014 respectively.

Kathleen Gallagher
Reporter
Pacific Business News

Japanese lead foreign investors in buying Hawaii real estate

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Japanese residents were the top foreign buyers of Hawaii real estate in 2014 with 291 purchases for a total of $278 million, according to Title Guaranty.

Mike Imanaka, senior vice president of data services for the Honolulu-based title services company, told PBN that the Japanese continue to value Hawaii real estate, especially in Waikiki, with its proximity to the beach and shopping.

The Japanese also are interested in Kakaako, Imanaka said.

“When the ONE Ala Moana [luxury condominium] was developed, it provided the perfect opportunity for continued value-based investment and proximity to shopping,” he said. “Japanese investment will likely continue in the Kakaako area.”

Rounding out the top five purchases by foreign investors last year were Canada (213 purchases, $165 million); Singapore (15 purchases, $57 million); China (15 purchases, $25 million); and Hong Kong (13 purchases, $14 million).

Korea, Australia, Germany, Guam and New Zealand rounded out the top 10 among foreign investors, Title Guaranty said.

Investors from Canada topped the list for buying property on Maui (94 purchases, $84 million); the Big Island (55 purchases, $52 million); and Kauai (12 purchases, $7 million). The Japanese were the biggest foreign buyers of property on Oahu (260 purchases, $254 million).

Despite the interest by foreign investors, domestic investors dominate the market. Title Guaranty reported 13,457 purchases by Hawaii investors for a total of $7.2 billion last year. They were followed by California (1,462 purchases, $1.2 billion); Texas (313 purchases, $205 million); Washington state (306 purchases, $227 million); and Colorado (156 purchases, $144 million).

Duane Shimogawa Reporter – Pacific Business News

Oahu condo prices hit another new record in January

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Home prices on Oahu soared in January, a traditionally slow month for sales, as the median price of a condominium hit a record $381,500, according to statistics released Saturday by the Honolulu Board of Realtors.

The median Oahu condo price was 19.2 percent higher than the median price set in January 2014, which was $320,000, and was 5.6 percent higher than the previous record median price of $361,250, set in December.

The median price of a single-family home rose to $675,000, a 7.2 percent increase from $629,500 in January 2014.

Sales of single-family homes, however, fell 14.6 percent ot 210 homes sold in January, from 246 homes sold in January 2014. Sales of condos fell 7.7 percent to 286 units sold, from 310 units sold in January 2014.

“This is traditionally one of the slowest months of the year, so the sluggish sales of single-family homes and, to a lesser extent, condos, is not too surprising,” Jack Legal, president of the Honolulu Board of Realtors, said in a statement. “However, what’s notable is the jump in median sales price, including a new record set for condominiums.

“This indicates demand for housing is still very high, and the one factor that is putting a damper on the market is, as usual, the lack of inventory, especially for single-family homes,” Legal said.

There were 1,077 active listings for single-family homes in January, a 7.1 percent decrease from 1,159 listings in January 2014. Condo listings totalled 1,630 in January, a 4.2 percent increase from 1,564 listings during the same month a year ago.

The months of inventory remaining for single-family homes — the time it would take to sell every home on the market — fell 7.1 percent in January to 2.6 months, from 2.8 months in January 2014. The inventory for condos, however, rose 3.4 percent to three months of inventory, from 2.9 months in January 2014.

Homes also spent more time on the market before selling in January. Single-family homes were on the market for a median of 26 days in January, compared to a median of 22 days in January 2014, an increase of 18.22 percent. The median days on market for condos rose 28.6 percent to 27 days, from 21 days a year ago.

Janis L. Magin Managing Editor – Pacific Business News

Historic ‘Marks Estate’ in Honolulu on the market for $5.6M

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The Marks Estate in Honolulu's Nuuanu Valley is up for sale

The Marks Estate in Honolulu’s Nuuanu Valley is up for sale

The historic Clarence H. Cooke Residence in Honolulu’s Nuuanu Valley, also known as the Marks Estate, is on the market for about $5.6 million, the broker marketing the sale told PBN Thursday.

JPMorgan Chase Bank took possession of the 4.7-acre, eight bedroom, eight bathroom mansion this past June for $6.5 million in foreclosure from the previous owner, Douglas Himmelfarb, who bought the property in 2006 for $4.4 million.

In May, Himmelfarb, a Hawaii art and furniture collector, auctioned off hundreds of items in the home, including furniture that once belonged to hair-care mogul Paul Mitchell and dishes once owned by movie producer Steven Spielberg.

Himmelfarb, who used to live at the estate, had collected most of the artwork and furniture pieces through inheritance, various estate auctions and antique shops across the United States.

His most interesting piece, which was not on the auction block, is a painting Himmelfarb claims was done by American painter Mark Rothko that could be worth up to $40 million, if it can be authenticated, which has been his quest for nearly three decades.

Built in 1932, the mansion, which is located at 3860 Old Pali Road, is known for its interesting architecture and connection to Cooke, a wealthy businessman, who was a former head of Bank of Hawaii and son of the heirs to the Castle & Cooke fortune.

The estate was also known as the Marks Estate after being purchased by Elizabeth and Lester Marks, and has been featured in movies and television shows. It includes maids’ quarters, pool house, carriage house, guest house and a caretaker house.

“[It’s for] someone who wants a trophy property,” David Buck, a Realtor with Hawaii Life Real Estate Brokers, who is marketing the property, told PBN. “It does need some work.”

The estate, which is listed in the National Register of Historic Places and the Hawaii State Register of Historic Places, has a total property assessed value of $6.2 million, according to tax records.

Duane Shimogawa Reporter – Pacific Business News

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Luxury_Oahu_Estates_$8M – 10M

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Condominium prices on Oahu hit new record in December

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decThe median price of a condominium on Oahu reached a record $361,250 in December, a 9.5 percent increase from the same month a year ago, according to figures released Tuesday by the Honolulu Board of Realtors.

The December median price for condos tops a previous record set in June, when the median price of a condominium hit $360,000.The median price of a condo in December 2013 was $330,000.

The median price of a single-family home on Oahu in December rose just 0.7 percent to $690,000, from $685,000 in December 2013. In November, the median price of a single-family home set a new record of $719,500.

Sales of single-family homes remained flat in December at 284 sales, compared to 283 home sales in December 2013.

Sales of condos were flat, with 290 units sold in both December 2014 and December 2013.

“This month’s sales figures basically stuck to historical norms except for one aspect,” Jack Legal, president of the Honolulu Board of Realtors, said in a statement, referring to the record median price for condos. “One positive is that the inventory of condos was up in December as compared to the previous year.”

Bill Cresenzo Reporter – Pacific Business News

Honolulu’s home price appreciation among nation’s highest

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Honolulu has one of the highest home price appreciation rates in the country, real estate data tracking service RealtyTrac said.

The median price of a home, which includes condominiums, was $480,000 in October, giving Honolulu an annual Home Price Appreciation rate of 10 percent, RealtyTrac says.

The top market for HPA is the Toledo, Ohio market, where the median price of a home is $100,000 and the HPA rate is 33 percent.

Nationally, the median price of a home was $193,000 in October, an increase of 16 percent over October 2013.

New Hawaii cesspool proposal could hurt home sales, real estate leaders say

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The leaders of the Honolulu and Kauai Board of Realtors said that a proposal to eliminate residential cesspools in Hawaii may have good intentions, but it would have unintended consequences.

Both Jack Legal, president-elect of the Honolulu Board of Realtors, and Karen Ono, executive director of the Kauai Board of Realtors, said that while they are not opposed to the Clean Water Act, the Hawaii State Department of Health could stymie home sales if it decides that rural new homeowners must replace their cesspools with septic tanks, which can cost cost up to $10,000 or more to install.

The DOH is proposing that new homeowners have 180 days from the date of sale to replace cesspools with septic tanks.

Ono said that could add thousands of dollars to the costs of the home, and both Ono and Legal say that mortgage companies would be less likely to approve a loan for a home that would need a new septic tank.

Legal said the new rules would discourage both the seller and the buyer.

The new rules would affect 77,000 homeowners on Neighbor Islands, and 11,000 on Oahu, including to Thelma Dreyer, a spokeswoman for the Hawaii Senate.

The proposal would also require new developments that have at least 15 lots to have septic tanks or sewer systems. That number is now 50, Ono said.

In a letter to the state Department of Health, Sen. Rosalyn Baker, who represents parts of Maui, said the proposed 180 days for homeowners to make the change to septic tanks fails to consider issues they may encounter for things such as permits and whether landowners would be able to connect with the county system.

Baker wrote that the DOH says that while there are now now almost 90,000 cesspools, with 50,000 on the Big Island, 14,000 on Kauai, 12,000 on Maui, 11,000 on Oahu and 1,400 on Molokai, but the DOH planned only one public hearing on the proposed changes, on Oahu, although it was videoconferenced to Neighbor Islands.

“It is unfortunate that DOH has chosen to pursue changing its administrative rules without seeking meaningful input from the landowners and communities most affected,” Baker wrote.

But now, the Department of Health said that it would hold meetings on Neighbor Islands and extend the public comment period through Oct. 17.

Bill Cresenzo Reporter – Pacific Business News

HONOLULU HOME SALES, PRICES DIP SLIGHTLY IN AUGUST, BUT HOUSING

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HONOLULU HOME SALES, PRICES DIP SLIGHTLY IN AUGUST, BUT HOUSING INVENTORY UP, ACCORDING TO HONOLULU BOARD OF REALTORS®

HONOLULU HOME SALES, PRICES DIP SLIGHTLY IN AUGUST, BUT HOUSING
INVENTORY UP, ACCORDING TO HONOLULU BOARD OF REALTORS®

HONOLULU HOME SALES, PRICES DIP SLIGHTLY IN AUGUST, BUT HOUSING

INVENTORY UP, ACCORDING TO HONOLULU BOARD OF REALTORS®

HONOLULU — The Honolulu Board of REALTORS® released resale figures today for the month of

August 2014. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

During August, sales of single-family homes decreased by 11.7 percent, while condominium sales decreased by 3.5 percent from August 2013. The median price paid for single-family homes in Augustdecreased slightly by 2.3 percent from the same month last year to $650,000. The median price for condominiums remained the same as that of August 2013 at $350,000. According to the Days on Marketindicator, single-family homes were on the market for an average of only 15 days, while condominiums were on the market for an average of 23 days.

“August was an interesting month for the Oahu housing market,” said Julie Meier, president of the Honolulu Board of REALTORS®. “While on the surface it may look like this past August was not on par with last August for sales of single-family homes, the truth is that August 2013 was a banner month – the high point of sales for the year. It would have been very difficult to duplicate that this year. Still, this remains a very healthy market, as evidenced by the fact that the average single-family home was on the block for only 15 days before being sold. Also noteworthy is the fact that inventory of both single-family homes and condos is climbing, which will help the market meet demand.”

Oahu Real Estate Market Update

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August_2014The median price of a single-family home on Oahu fell last month, two months after hitting a new record price, as sales in August dropped by 12 percent when compared to last year, according to statistics released Sunday by the Honolulu Board of Realtors.

The median price of a single-family home in August was $650,000, which was 2.3 percent below the median price of $665,000 in August 2013. The median price in June set at record at $700,000.

Sales of single-family homes on Oahu fell 11.7 percent to 323 homes sold, from 366 homes sold in August 2013.

Condominium sales in August declined by 3.5 percent to 444 units sold, from 460 units sold during the same month last year. The median price of a condo on Oahu was unchanged at $350,000.

“August was an interesting month for the Oahu housing market, Julie Meier, president of the Honolulu Board of Realtors, said in a statement. “While on the surface it may look like this past August was not on par with last August for sales of single-family homes, the truth is that August 2013 was a banner month – the high point of sales for the year. It would have been very difficult to duplicate that this year.”

The number of sales in August 2013 was 25 percent higher than August 2012, when 293 homes sold. Last month’s sales were 10 percent higher than the 2012 level. The median price a year ago was 9 percent higher than the median price set in August 2012, which was $609,000. Last month’s median price of $650,000 was nearly 7 percent higher than the price from two years ago.

“Still, this remains a very healthy market, as evidenced by the fact that the average single-family home was on the block for only 15 days before being sold,” Meier noted. “Also noteworthy is the fact that inventory of both single-family homes and condos is climbing, which will help the market meet demand.”

Staff Pacific Business News