How Hawaii’s Rebounding Economy Equates to a Stronger Real Estate Market
What do Walt Disney, Starwood Hotels & Resorts, and Goldman Sachs have in common? They are three major ingredients in the currently baking lasagna that is the rapidly rebounding economy here in Hawaii.
In an article published last month by Bloomberg L.P., a clear case was made to support the fact that Hawaii’s economy, which took a dip (or a dive) along with the rest of the country in recent years, has officially rebounded and is steadily on the rise.
Located in secluded Kilauea Farms on Kauai's North Shore (MLS# 258521)
Highlights From The Article:
- Goldman Sachs Group Inc. in November announced a $1.85 billion loan to a hotel portfolio that has five major Hawaii properties, including Sheraton Waikiki and the Westin Moana Surfrider in Honolulu.
- Both Walt Disney Co. and Starwood Hotels & Resorts are investing in the expansion of resorts on Oahu, Maui, Kauai, and the Big Island.
- There was a nearly 10% increase in arrivals to the state through September
- Lodging and tourist-industry revenue rose 15% to a record $3.62 billion in 2012 through September 30.
- Building-permit volume in the state, including residential and industrial applications, climbed 33% to $1.2 billion worth of projects in 2012 through September. This statistic is also covered in an article by the Hawaii Reporter.
- On Maui, two residential community projects are already under construction.
- On Oahu, a couple large residential projects are currently under development.
- On the Big Island, the first new residential development in at least five years is currently moving forward with construction.
Best summed up by William McMorrow, chairmen and chief executive officer of Beverly Hills, California-based real estate investor Kennedy Wilson, “Everything in Hawaii is hitting on all cylinders. It’s an opportune time to deliver products to the Hawaiian market.”
Located in Kealia on Kauai's East side (MLS# 256415)
The Tide Has Turned
With essentially all systems firing here in the Islands, the residential real estate market is ripe for investments and evidence of that is already visible here on Kauai, with a number of properties currently in escrow and sales to close soon.
As is evidenced by the growing economy, there is a growing demand here in the Islands. According to a recent study published by KHON News, the combination of an influx in international interest with an increase in median home price (read: people jumping back into market) and low interest rates all equates to a very strong market right now.
It’s said that a rising tide lifts all boats. In my humble opinion, the time is right to grab a boat and hop on!