Kauai Real Estate, Fire In Poipu Beach Restaurant, Marco Polo Massive Fire In Oahu

Kauai Real Estate SOLD and NEW listings Island Wide! Add comments

Kauai Real Estate Update 

For a complete list of what sold, went into escrow and all the new listings island wide for last week click here; Kauai Real Estate Update July 10 to 17, 2017

In Poipu Beach Real estate news; the Kiahuna Golf Course, which has been on the market for several years is in escrow. The listing price is $14,300,000 and it went into contract on 7/11/17. For current market analysis of the Fee Simple real estate market click here; Poipu Beach Real Estate Update

I’ve updated my Kiahuna Plantation real estate page and you can find out everything that is for sale, what is in escrow and what has sold since the first of the year by clicking here; Kiahuna Plantation Real Estate Update

Fire In Poipu Beach Restaurant <img src=”image.gif” alt="olympic cafe“/>
Last week a fire broke out in the kitchen of the Olympic Café located at the Poipu Shopping Village at the former site of Roy’s. An estimated $100,000 worth of damage was done.
The fire broke out around 8 p.m. and a firefighter that was visiting from the mainland grabbed an extinguisher and helped to put out the fire. No one was hurt and the fire was deemed to be an accident.  There is a sign on the front door that says they hope to reopen soon.

Five Alarm Fire In Honolulu Complex Leaves 3 Dead <img src=”image.gif” alt="marcopolofire“/>
Three people died, and 17 people were injured, in the biggest fire in Oahu’s recent history last Friday. The news played out pretty much all weekend as firefighters fought to get the five alarm fire under control at the Marco Polo Condominium Complex in Waikiki.

The fire broke out on the 26th floor of the 36 story building which has a total of 568 units. The Marco Polo complex is the 18th largest complex in Hawaii. The units are mix of fee simple and leasehold with prices ranging from $339,000 for an 831-square-foot leasehold condo to $650,000 for a 1,030-square-foot fee-simple unit.

The Marco Polo was building in 1971 which was four years before sprinklers in the building were mandatory.  This complex has been grandfathered in and sprinklers were not required.  The board did look at getting sprinklers in 2011 but it was deemed to be too costly at almost $5,000 per unit.  Many residents of this building are on fixed incomes and could not afford an assessment like that so the idea went no further.  Now Hawaii lawmakers are looking at creating programs that will offer interest free loans and tax credits as an incentive for the Marco Polo, and buildings like them, to install sprinklers.

Million Dollar Median Home Prices On The Horizon

When Paul Brewbaker talks, people listen.
With over 25 years of experience in researching Hawaii’s economic market he is established as a voice of reason and clarity in the economic landscape of our islands. Paul recently discussed housing prices on Oahu. Since Kauai follows Oahu’s trends we keep an eye on their market. Paul Brewbaker forecasts that the median price for single-family homes will reach $1 million by 2022 or 2023 (in Oahu).

Paul stated that home prices have been growing at a steady 4 to 5 percent per year for the last 5 years. The bottom on the market was around 2009 and it rolled around a bit until 2012 For the last 5 years it’s steadied and has been on the rise.

Is Oahu in a bubble? It’s not according to Brewbaker. He states; “The fact that house prices are on such a stable path is unusual, and they haven’t gotten steep yet like they did with previous cycles.  Since the recession, there has been no reacceleration of prices, so my question is why?”

“There is no question that we are in a restrictive production environment. There has never been a time where it has been more challenging for developers to acquire the entitlement necessary to build more houses,” Brewbaker said. “The supply is as constrained as ever, but we are not seeing an inflection in prices. Does that mean that demand is not as strong as everyone is saying it is?”

Brewbaker said the number of developers able to build in Hawaii has continued to decline, with approximately 20 to 24 actively developing new units.

Brewbaker added, “We can solve the housing problem by building more tall buildings, there are not nearly enough of them.”   Brewbaker said the bulk of activity is coming from local homebuyers, not offshore investor

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