Kapalua Golf Villas Update
January 2016
LOCAL MAUI NEWS
Aloha Kapalua Golf Villas Owners!

Alexander & Baldwin will be ending their sugar operations on Maui and will lay
off nearly all of its 675 employees.  They're looking at various uses for the 36,000 acre plantation.  Right now they're prepping to plant hemp. Hey - doesn't hemp come from the cannabis plant - like marijuana? It does. But unlike marijuana, it has an extremely low THC content.  THC is the controlled substance. The University of Hawaii has been researching uses of hemp, such as biofuel and toxin removal. AND this could be quite the cash crop for Hawaii. Due to our climate, we could grow 3 crops a year, and no other state can.

Three Hawaii hotels on Maui and the Big Island retained their Five Diamond rating from AAA. They were also the only 3 hotels in Hawaii to make the list: The Ritz-Carlton, Kapalua Maui, The Four Seasons Resort Wailea Maui, and on the Big Island the Four Seasons Hualalai. * Larry Ellison's Four Seasons Resort Lanai, at Manele Bay is scheduled to open February 1st, and the Four Seasons Resort Lanai, The Lodge at Koele reopening later this year when renovations are completed.  Mr. Ellison should make his investment back since room rates at the resort will range from $960 a night to almost $4,000 a night for an ocean view.  And if you can afford those rates, feel free to land your helicopter on their upcoming helistop pads (among the first atop any of Hawaii's hotels).

University of Hawaii scientists, including Dr. Ndhlovu, have made a discovery that could assist a person's own immune system to rid the HIV virus that leads to AIDS.  They discovered a "negative checkpoint receptor" on T cells that make immune cells dysfunctional and incapable of fighting the virus.  Research can now be developed for targeted vaccines. * The University of Hawaii just signed a $6 million deal to jump on the SEA-US undersea broadband cable. That's the one which will connect Hawaii, Los Angeles, Guam, Indonesia, and the Philippines via the most modern transoceanic cable in the world.  Its optical fibers will deploy 100 gigabits per second.
       CURRENT MARKET ANALYSIS
In 2015, the housing market reached its best year in nearly a decade, but what's ahead for 2016?  According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), sales should still increase this year, but at a more moderate pace."  Things like pent-up demand, sustained job growth, and improving inventory conditions will help improve the housing figures.  While rising mortgage rates, home prices that still outpace wage growth, and a fragile global economy could be the main challenges. * There will be some changes. The Treasury Department will begin tracking all "secret buyers" of luxury properties as concerns mount about money laundering in high-end real estate. The initiative requires shell companies (limited liability companies, partnerships, and other entities) that make all-cash real estate purchases to expose the buyers' identities.  Title insurance companies will be responsible for discovering and reporting the identities of these buyers. *  Foreign investors are expected to pour more money into U.S. real estate this year. Bloomberg ran a story that concluded China's economic slowdown, Brazil's recession, and Europe's immigration crisis have instilled in international investors that "the U.S., at the moment, really is the safest place for them to go." 

Right before it broke for the holidays last month, Congress passed a big tax bill that the NAR backed, most notably one that helps protect underwater home owners from a tax hit when they sell their home in a short sale or have debt forgiven in a loan modification.  The bill also included a number of commercial provisions that could spur some $30 billion in annual foreign investment in U.S. commercial real estate starting this year.
    
Sales of single-family homes in Maui increased 46% last month to 92 sold in December, compared to 63 sold in December 2014. The median price of those home declined by 3% over December of last year.  Condominium sales on Maui decreased 19% with 101 units sold last month, compared to 125 sold during the same month last year.  The median price soared however by 7.9%.

If we widen the scope and look at year over year 2015/2014 statistics, single-family home sales on Maui rose by 15% in 2015 with a median sales price increase of 2% over 2014.  Condominium sales and median prices were pretty flat 2015/2014.

Let's take a look at Kapalua Golf Villas:

Status
Unit
Bd
Ba
 List $
 Sold $
Close
*ACTIVE
14V2
1
1.5
635,000
ACTIVE
26V-1
1
1.5
650,000
ACTIVE
20V-1
1
1.5
660,000
ACTIVE
19V1
1
1.5
795,000
ACTIVE
15T7-8
1
2
600,000
ACTIVE
15T5-6
1
2
699,000
ACTIVE
24T3-4
1
2
725,000
ACTIVE
16T5-6
1
2
730,000
ACTIVE
27T5-6
1
2
735,000
ACTIVE
27T1-2
1
2
755,000
*ACTIVE
22T5-6
1
2
785,000
*ACTIVE
27V3
1
2
790,000
ACTIVE
17T7
1
2
795,000
*ACTIVE
14P12
2
2
830,000
ACTIVE
23P1-2
2
2
879,000
ACTIVE
21P7-8
2
2
919,000
ACTIVE
24P7-8
2
2
935,000
ACTIVE
14P7-8
2
2
950,000
ACTIVE
11T2
2
2
975,000
ACTIVE
27V2
2
2
1,095,000
SOLD
27T7
1
1.5
699,000
650,000
04/15/15
SOLD
21T1-2
1
2
767,000
767,000
03/31/15
SOLD
24P3-4
2
2
675,000
660,000
01/14/15
*SOLD
15P3,4
2
2
720,000
660,000
12/31/15
SOLD
23P3-4
2
2
775,000
725,000
03/27/15
SOLD
16P3-4
2
2
819,000
805,000
05/06/15
SOLD
14V3
2
2
829,000
775,000
05/05/15
SOLD
26P3-4
2
2
850,000
800,000
03/02/15
SOLD
26P5-6
2
2
949,000
918,000
05/29/15
* new listing
* $ reduced
* new sale

Figures from Realtors Association of Maui
TOURISM and TRAVEL
According to a new report Hawaii hotels set records in 2015, and high performance across the industry will likely continue through 2016. Maui appears to have had the highest Revenue Per Available Room (RevPAR) among all Hawaii hotels last year.  Gains were highest on Maui during the first 11 months of 2015 compared to 2014.  While RevPAR statewide rose 6%, Maui rose 10.5%.  

Hospitality Advisors broke the room rates down by types of accommodations in Hawaii, with Upper Upscale and Upper Midscale having the highest occupancy:   2015
                                                                                                   
Luxury Hotels: 73.1% full, up 1.8% over 2014/avg room rate $483, a 7.1% increase
Upper Upscale Hotels84.5% full, up 1.9% over 2014/avg room rate $248, a 2.8% increase
Upscale Hotels75.7% full, up 0.5% over 2014/avg room rate $184, a 5.3% increase
Upper Midscale Hotels80.2% full, up 2.9% over 2014/avg room rate $146, a 2.6% increase
Midscale Hotels73% full, down 0.5% over 2014/avg room rate $150, a 10.3% increase
Economy Hotels70.8% full, up 0.6% over 2014/avg room rate $118, a 7.7% increase

A United Airlines headline: 
"New System Reunites Customers with Lost Dentures and Lots More"
(Trying to figure out how exactly one looses their dentures on a flight ... oh well).  According to their stats, about 100,000 items a year are lost on United flights.  With their old lost-and-found they only returned about 15,000 items to passengers.  Now that number has increased dramatically to 50,000. * Larry Ellison has sold controlling interest in his Hawaii interisland airlines, Island Air to a local investment group. * Look for more Japan-Hawaii flights.  All Nippon Airways (ANA), Japan's largest airline, just purchased three A380 Superjumbo Aircraft. * Hawaiian Airlines will offer more Maui flights when they receive 16 new A321neo aircraft that will serve interisland flight routes as well as Mainland routes. *   WestJet (the Canadian low-cost carrier) is upgrading its fleet for Hawaii-Alberta routes.  They're taking delivery on four Boeing 767-300 ER widebody aircraft. * And things are getting closer for all you anticipating space jockies.  Kona International Airport expects their environmental assessment to be completed in the coming weeks.   Kona airport would be among just 10 locations authorized to launch commercial space crafts. Two space tourism companies have already signed agreements expressing their interest in launching space flights from Kona.
     MORTGAGES
There's been a lot of news about global stock markets plummeting, but Dean Rathbun of Avis Mortgage, shares that it didn't slow down the U.S. mortgage market.  In fact Mortgage applications for both refinancings and home loans surged 9% week-over-week on a seasonally adjusted basis. Global turbulence in overseas financial markets led by China and sharp drops in oil prices, generated a "flight-to-quality" which benefits U.S. Treasury securities.  Investors drove down Treasury yields and mortgage rates fell to their lowest level since last October.  With that said, Dean wants to remind you that there are still more than 5 million borrowers who could qualify and benefit from refinancing, taking advantage of the low rates.
GREEN
Hawaii Gas has chosen an international company for the utility's $300 million plan to ship in liquefied natural gas in bulk amounts to the Islands.  Hawaii Gas estimates that its LNG bulk shipment plan could save the state in excess of $2 billion over a 15-year period starting in 2019. * While Hawaii Gas is the first company in the state to import LNG to the Islands, Hawaiian Electric Co. also has a $235 million LNG plan to start shipments in 2019. * Results from a $70,000 private study ordered by Maui County are in.  In a 241-page report, all options pointed to Maui County turning over their electric grid.  Alternatives would include the change of ownership of some or all of Maui Electric's existing assets in some form; whether to a private company, or a third-party ownership cooperative model.  The island of Kauai is currently utilizing the cooperative ownership model, and the Big Island is looking to go the same route through a newly-formed nonprofit organization called the Hawaii Island Energy Cooperative. * Meanwhile Hawaiian Electric is planning to match funds for the $2.4 million they received from the feds to work on renewable energy integration.  They'll be looking for ways to increase solar power energy and storage on local grids.
Maui Humpback Whale & Rainbow
                             
MAUI HAPPENINGS

Maui Celebrity Series Sheraton Kaanapali tickets
1/23:   Jeff Bridges in Concert - "The Dude" on Maui
1/30:   Brian Evans in Concert

Maui Arts & Cultural Center tickets 
1/24: Broadway Diva Pops
1/26: Chicago in concert
1/30: UB40
1/30: Las Cafeteras   Son Jarocho sounds
2/6: ART=MIXX   fusion of visual/performing arts
2/7: Watch the BIG GAME plus Willie K
2/11: Amy O'Neal: Opposing Forces   B-Boys dance
2/12: Dirty South  DJ/producer
2/13-14: Kukahi 2016 Keali'i Reichel Halau   hula
2/18: Iliza Shlesinger   Last Comic Standing comic
2/19: Merwyn Conservancy Hawai'i: Language Matters
2/20: International Film Festival  all in 3D  glasses provided
2/21: Maui Pops Orchestra  Winter Pops
2/26-27: Kumu Kahuma Theater:  My Boy He Play Ball
2/27: Exhibit:  Observe & Play Family Day

Various Events
1/30:   Run/Walk For The Whales info
2/12-15: 10th Annual Whale Tales details
2/13-21: 2016 Maui Plein Air Painting Invitational specifics

Until next month's update, I invite you to check out my website and to keep me in mind if you're looking to sell or perhaps add to your real estate portfolio.  Remember I've been a full time Maui Real Estate Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales. I am available to you 7 days a week.

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