Waikiki real estate update

November 14, 2009 by
Filed under: Hawaii 

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Waikiki real estate has been quite lucky to be spared from the overwhelming negativity that the recent economic recession and ensuing housing market collapse have imposed on several local market sin Hawaii.  In fact, Waikiki condos for sale have not seen nearly the same level of changes and market dropouts that have been experienced in more impacted places in rural Oahu and the neighbor islands.
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Allison Schaefers’ analytical article in the October 5, 2009, edition of the Honolulu Star-Bulletin respected the value of real estate in Waikiki which has been able to remain relatively steady.  In fact, her claim that “it was a September to remember for Honolulu’s residential real estate market as both home sales and prices rose for the first time in a long while,” is actually based a large part on gains in the Waikiki market which have boosted the overall Honolulu market.  However, the situation may not be as glitzy as it may appear at first.  According to Lisa Scrontras of Custom Publishing Group, “The median sales price of a Waikiki condo is approximately $350,000, which means half of the 280 units sold this year closed for less than that — some for under $200,000 and all within a couple blocks of the beach.”  However, it is important to realize that the market is largely an investor market as over 62 percent of Waikiki’s residents are renters and visitors.

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Because Waikiki is such an urban environment that is home to some of the most luxurious brands and retail stores in the world, it is hard to imagine much change in the housing market.  As one of the most popular places to have a second home, condominium and apartment prices have been maintained for most of the last few years by offering property owners the convenience in being smack dab in the middle of Hawaii’s most vibrant, innovative, and hip cultural centers.

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