16 July 2015 - Known for picture-perfect sunsets, romantic getaways, great food and shopping, Hawaii is the definition of an island paradise. And underlying this idyllic destination is a property market that has experienced a boom in ocean-side condo developments and positive returns for both condos and single family homes in recent years.
Jack Legal, President of the Honolulu Board of REALTORS® recently noted that “May [2015] saw median prices for single family homes and condominiums rise… The statistics are very similar to those of May 2014. We’re seeing improvement in the inventory of homes and condos, but demand remains high for housing at all points of the pricing spectrum.”
“The increase in median prices reflects the continued limited inventory available, especially in single-family homes. With limited single-family homes for sale, homebuyers may look toward condos as affordable options, and the increased demand also drives median condo prices upwards. Simply put, demand continues to outpace supply.”
The State of Hawaii currently forecasts economic expansion through 2018. Meanwhile, local economists forecast that property investors from the U.S. and Asia will continue to purchase in Hawaii for at least another 3 years.
According to Choi International, a leading brokerage in Oahu, statistics on the average price of condos do not reflect the true picture of prices that are being obtained by luxury condominiums due to be finished in about 18 to 24 months. The average cost of those condominiums is about
US$2,500 p.s.f. and will define the high end market for many years.
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