Forecast: Hot Hawaii Investment Market will Persist

HONOLULU-Investment in Hawaii real estate shattered records in 2004 and is expected to continue at high levels through 2004, according to a new report from locally based Colliers Monroe Friedlander, Inc.

In 2003, the total number of properties that sold for more than $1 million rose to 138, nearly doubling the previous year’s figures. The total sales volume more than doubled, jumping to $2.1 billion from $868 million in 2002. Cut either way, the numbers set record highs for the island state, according to Colliers.

Looking ahead, there are now 133 properties on the market at a combined asking price of $1.4 billion. “These available properties are likely to be purchased quickly as demand for solid real estate investments continue to remain at high levels,” concludes the report. Indeed, based on a UBS/Gallop Poll of investors, 46% of the respondents anticipate they will invest in real estate in 2004, up from 40% three years ago, and the National Association of Real Estate Investment Trusts predicts 2004 demand for real estate securities at $20-$30 billion.