July 8, 2010

Waikiki real estate market update

The Waikiki real estate market, a sector of the larger Oahu housing market that includes condominiums and apartment buildings, is showing strong signs of improvement during the most recent tracking period. According to a June 8, 2010 report from Pacific Business News, the number of home sales on the island of Oahu increased significantly in the month of May, while the median price of a home increased relative both to year-ago and month-ago levels. The Honolulu Board of Realtors reported that the median home price in May increased by about 12%, finally breaking the $600,000 mark. There were also 284 sales in the month of May, 68 more than last year at the same time. Condo sales on the island of Oahu also increased, by about 36% relative to May 2009. The median price of a condo rose more moderately, although it was still higher than in May 2009.

Although the improvement amongst Waikiki condos for sale is partially driven by the federal tax credit, the market as a whole seems to be looking up. The article went on to state that: “There were 1,183 sales of single-family homes during the first five months of the year, which was a 40 percent gain over the same period in 2009. Condo sales totaled 1,605 during the January-May period, a 47.5 percent gain over 2009. Year-to-date prices were also up slightly. The median price of a single-family home for the first five months of the year was $585,000, a 3 percent increase over the same period in 2009, while the year-to-date median price of a condo was $305,000, a 1.5 percent gain over the same period in 2009.”

One particular example of Waikiki real estate faced a repossession and lawsuit over a property dispute. According to a June 25, 2010 report from the Honolulu Star Advertiser, “An affiliate of France’s second-largest banking firm, Groupe BPCE, has assumed ownership of the Waikiki Trade Center office tower at 2255 Kuhio Ave. The BPCE subsidiary, Natixis Real Estate Capital Inc., repossessed the property on Monday in lieu of foreclosure. Natixis acquired the property from California-based investors doing business as Waikiki Trade Center Investors LLC, which paid more than $30 million in 2006 for the 24-story tower on leasehold land at the corner of Seaside and Kuhio avenues.”