May 7, 2015 / Market Insights

Market Spotlight: Honolulu, Hawaii

As part of our Luxury Defined report, we spotlight a Global Economic Hub: Honolulu, Hawaii

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Gracing the southeastern shores of Oahu, the vibrant city of Honolulu is a fast-paced and dynamic regional economic center despite the laid-back resort lifestyle its temperate climate and surf culture fosters. Thanks to its central Pacific location, the city’s high-end real estate market attracts vast numbers of international purchasers. “We have always had strong foreign interest from Japan and Korea, but we are now seeing more from China,” says Cedric Choi of Choi International. “The greatest positive impact on the luxury market has been the travel plans of the Chinese,” he adds, noting that the new 10-year visa program between China and the United States is likely to bolster demand for luxury Honolulu residences from affluent Chinese visitors over the coming years.

 

Spectacular Oceanfront Compound on Kailua Beach, Hawaii Spectacular Oceanfront Compound on Kailua Beach, Hawaii Spectacular Oceanfront Compound on Kailua Beach, Hawaii
Despite low inventory and housing prices at historic highs, Honolulu saw the highest year-on-year increase in the overall number of $1 million property sales since 2006, with a 14 percent increase from 2013 to 2014. The outlook for the next 12 months looks strong, with a flurry of new high-end developments across Oahu set to ease existing inventory constraints and attract more international buyers.
 
 What defines luxury:  $1 million
 Record sale price in 2014:  $17 million
 Average luxury square foot sale price:  $690
 Average days on market for luxury homes:  97

 

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