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Spike in Hawaii – Part 2

April 6, 2010 By idx guys Leave a Comment

Oahu_02 Projects Uncertain

Still, some observers wonder how much builders can ramp up
production if demand continues to build over the next year or two.

Two
massive housing projects planned for O’ahu are uncertain, while a third
could be near gaining a key approval but is still at least a couple of
years away from delivering initial homes.

One uncertain project is
Ho’opili, proposed by Schuler for up to 11,750 homes on the ‘Ewa Plain.
The developer had anticipated delivering the first Ho’opili homes in
2012 if it could obtain regulatory approvals for the highly contentious
project. In August, however, the state Land Use Commission ruled that
Schuler’s petition to urbanize 1,554 acres of farmland was deficient.

Jones
said his firm is working on addressing issues with the Ho’opili
petition, but is uncertain when it may return to the LUC to seek
approval.

Another uncertain master-planned community is Waiawa
Ridge, which has regulatory approvals for 10,000 to 12,000 homes on
3,700 acres near Mililani. The last estimate was for initial home
deliveries to begin this year, but construction had been delayed and the
developer, an affiliate of Gentry, lost its right to develop the land
owned by Kamehameha Schools last year.

A third major pending
project is Koa Ridge by Castle & Cooke, adjacent to Mililani.

Castle
& Cooke is expected to receive a decision this week from the Land
Use Commission on redistricting 768 acres of farmland for the project
planned for 5,000 homes.

Castle & Cooke had hoped to start
delivering Koa Ridge homes upon finishing Mililani, which happened last
year. But the plan in the works since the mid-1990s has been delayed
several times. If the developer receives approval, the first homes could
be finished in 2012.

A couple of other big projects involving the
James Campbell Co. — Makaiwa Hills with 4,100 homes near Makakilo and
Kapolei West with 2,400 homes — have necessary zoning but are on
development timetables to deliver initial homes in 2014 or 2015.

Haseko
Homes is still developing in ‘Ewa Beach, but is building the Hoakalei
Resort with 2,350 higher-end resort homes after recently completing the
2,500-home Ocean Pointe community.

New high-rise condominiums
could be built to satisfy demand, but they generally take a few years to
develop.

Cassiday said the relatively low inventory of previously
owned homes that are for sale is another factor that could press prices
skyward if demand surges and inventory doesn’t grow.

“No matter
what you say, Hawai’i is undersupplied in housing,” he said.

Reach Andrew Gomes at [email protected].


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Hawaiian Americana Realty, Inc | Mark Howard – Owner / Broker – RB 20384
1888 Kalakaua Ave., C312
Honolulu, HI 96815
Phone 808-791-2923

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