Honua Kai Update
January 2016
LOCAL MAUI NEWS
Aloha Honua Kai 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 Honua Kai:

Status
Unit
Bd
Ba
List $
 Sold $
  Close
KONEA
*Active
515
0
1
789,000
*Active
238
1
1
784,999
*Active
522
1
1
799,000
Active
224
1
1
850,000
Active
214
1
1
854,995
*Active
308
2
1
1,090,000
 Active
251
2
3.5
3,625,000
In Escrow
204
2
2
1,150,000
In Escrow
145
2
2
1,390,000
Sold
319
0
1
750,000
750,000
09/11/15
Sold
614
1
1
739,000
739,000
05/18/15
Sold
110
1
1
847,000
825,000
06/23/15
Sold
148
1
1
850,000
850,000
02/17/15
Sold
710
1
1
859,000
850,000
01/07/15
Sold
342
2
2
1,245,000
1,125,000
12/11/15
Sold
426
2
2
1,375,000
1,300,000
04/10/15
Sold
345
2
2
1,390,000
1,350,000
07/08/15
*Sold
309
2
2
1,425,000
1,425,000
01/11/16
Sold
543
2
2
1,485,000
1,485,000
03/16/15
Sold
409
2
2
1,505,000
1,505,000
08/10/15
Sold
103
2
2
1,505,000
1,505,000
08/31/15
Sold
407
2
2
1,525,000
1,525,000
04/09/15
Sold
203
2
2
1,525,000
1,525,000
09/18/15
Sold
609
2
2
1,540,000
1,540,000
02/27/15
Sold
403
2
2
1,565,000
1,565,000
05/07/15
Sold
313
2
2
1,590,000
1,590,000
05/29/15
Sold
225
2
2
1,600,000
1,585,000
10/09/15
Sold
745
2
2
1,720,000
1,720,000
03/18/15
Sold
629
3
3
2,195,000
2,195,000
05/12/15
Sold
329
3
3
2,245,000
2,149,500
11/27/15
Sold
925
3
3
2,249,950
2,249,950
03/13/15
*Sold
202
3
3
2,600,000
2,600,000
01/19/16
Sold
1029
3
3
3,197,450
3,197,450
11/30/15
Sold
402
3
3
3,589,900
3,589,900
03/31/15
Sold
450
3
3
3,699,950
3,699,950
01/14/15
Sold
550
3
3
3,789,900
3,789,900
02/17/15
HOKU LANI
Active
237
0
1
699,000
Active
223
0
1
725,000
Active
333
0
1
799,000
*Active
737
0
1
810,000
Active
224
1
1
724,000
Active
332
1
1
725,000
*Active
632
1
1
749,000
*Active
1026
1
1
749,000
*Active
530
1
1
759,000
*Active
418
1
1
809,000
Active
240
1
1
865,000
Active
316
1
1
870,000
*Active
1034
2
2
1,225,000
Active
434
2
2
1,249,000
Active
145
2
2
1,325,000
*Active
445
2
2
1,325,000
Active
710
2
2
1,450,000
Active
246
2
2
1,500,000
*Active
725
3
3
2,375,000
Active
201
3
3
4,099,000
*Escrow
922
2
2
1,280,000
Sold
730
1
1
765,000
740,000
02/20/15
Sold
616
1
1
785,000
785,000
02/18/15
Sold
216
1
1
795,000
770,000
03/03/15
Sold
140
1
1
814,999
810,000
04/06/15
Sold
242
1
1
875,000
875,000
03/19/15
Sold
412
2
2
1,100,000
1,100,000
07/24/15
Sold
620
2
2
1,299,000
1,185,000
09/11/15
Sold
215
2
2
1,300,000
1,300,000
08/31/15
Sold
315
2
2
1,450,000
1,450,000
03/16/15
Sold
836
2
2
1,479,000
1,425,000
03/02/15
Sold
745
2
2
1,595,000
1,500,000
02/17/15
Sold
649
2
2
1,699,000
1,675,000
03/05/15
Sold
204
3
3
2,054,950
2,054,950
11/02/15
Sold
404
3
3
2,227,450
2,227,450
05/21/15
Sold
829
3
3
2,369,000
2,369,000
10/29/15
Sold
350
3
3
3,000,000
2,000,000
05/07/15
Sold
250
3
3
3,069,900
3,069,900
04/23/15
Sold
1037
3
3.5
2,985,000
2,985,000
08/28/15
Sold
501
3
3.5
5,000,000
4,600,000
05/21/15
*new listing
*new escrow
*price 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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