Visitor’s Guide to Oahu Real Estate

Century 21 All Islands / Mathew Ngo

CENTURY 21 All Islands is the largest CENTURY 21 organization in Hawaii

with 10 offices located throughout the State. With more than 20 years in
real estate business, our highly-trained sales force is dedicated to providing
you with top-quality professional assistance.

We have the support and benefit of belonging to the largest, most recognized
real estate organization in the world with more than 7,800 offices
located in over 42 countries and territories worldwide.
Whether you have an interest in a little grass shack or a fine home or estate,
we can help you effectively navigate the Hawaii Real Estate Market.

PROPERTY LISTING / MARKETING SERVICE

CENTURY 21 All Islands offers extensive marketing for your property, giving
you the best opportunity to sell your property in the shortest amount
of time for the highest possible price. We design a customized marketing
system to enhance its appeal and maximize its exposure in the marketplace
by using our strategic approaches to online and offline marketing,
open-houses, and broker opens – to name a few.

BUYER ASSISTANCE / REPRESENTATION

CENTURY 21 All Islands’ professionals understand that buying a home is
one of the most important personal and financial decisions that you will
make in your life. We offer buyer representation in contract negotiations
and home-finding – and we are committed to guiding you step-by-step,
answering all your questions along the way to ensure that your experience
is as pleasant and successful as possible.

RELOCATION ASSISTANCE
Neighbor Island, National and International Relocation assistance. We can
help you move to or from just about anywhere in the world.

www.c21allislands.com
WAIKIKI OFFICE: 1-808-953-2100
AWARD-WINNING COMPANY • EXCEPTIONAL SERVICE • MARKET KNOWLEDGE & INSIGHT
GLOBAL REAL ESTATE NETWORK • NATIONAL TOP-PRODUCING OFFICES
 $643,500

$624,000

$575,000
Actual Sales

$325,000

$325,000

$302,000

How Real Property Tax on Oahu is Determined........

Real property, land and improvements. Assessment process is based on comparable values
in the area. The tax assessor will look at similar homes and their sales prices. Based on up
to five comparables (comps) the assessed value is determined.

Current tax rates for residential properties and an owner-occupied is $3.42 per $1,000 of
assessed value. A $500,000 home on Oahu would have annual taxes of $1,710. On top
of that, there’s owner occupant exemptions that knock an additional $80,000 off the tax
assessed value or $120,000 for homeowners 65 years and older. For Non-Homeowner
properties, the tax rate is $3.58.

Oahu's assessed values generally lag behind market values. Buy a $500,000 house and
there's a good chance its assessed value is $450,000. That's not always the case, your
realtor should have that info readily available.

Resort-zoned properties have significantly higher tax rates, currently $12.40 per $1,000 of
assessed value. Keep that in mind when looking at condo hotels and vacation rentals.
Leasehold vs Fee Simple
FEE SIMPLE
Fee simple ownership is probably the most familiar form of ownership to buyers of residential
property, especially on the Mainland. Fee simple is sometimes called fee simple absolute
because it is the most complete form of ownership. A fee simple buyer acquires ownership of the
entire property, including both the land and building. The fee simple owner does not pay groundʼs
rent, but does pay real property taxes. The fee simple owner has the right to possess, use and
dispose of the land as the fee simple owner wishes--sell it, give it away, trade it for other things, lease
it to others, or pass it to others upon death.

LEASEHOLD
The leasehold interest is created when a fee simple land-owner enters into an agreement or
contract called a ground lease with a lessee. A lessee buys leasehold rights much as one buys fee
simple rights; however, the leasehold interest differs from the fee simple interest in several
important respects. First, the buyer of residential leasehold property does not own the land and
must pay ground rent. Second, the use of the land is limited to the remaining years covered by
the lease. Therefore, the land returns to the fee simple land-owner in a process called reversion.
Depending on the provisions of any surrender clause in the lease, the buildings and other
improvements on the land may also revert to the fee simple land-owner.

Questions to ask before you buy leasehold property

➙ How long is the lease term? When is the expiration date, and is there an extension clause?
➙ How much is the lease rent?
➙ When are the lease rent renegotiation dates?
➙ How will the new lease rent be determined?
➙ What are the terms of the surrender clause?
Authorized by the Hawaii State Legislature and the State's Housing Finance and Development Corporation

Comparing Vacation Properties

Comparing the many ways you can get your hands on a vacation property.

Condo Hotel Timeshare Fractional Second Home

How it works: You buy a
room in a hotel. The hotel
operator can rent out your
room to guests when you
aren’t using it, and you
share that revenue.
▪ Advantages: You can use
the property when you want,
and get some rental income
at other times which can
cover part of your expenses,
such as maintenance and a
mortgage. Condo hotels
have the amenities of a
hotel, such as room service.
▪ Disadvantages: You can
suffer from the vagaries of
the hotel business: If your
room isn’t rented out, then
you don’t collect income. In
many cases, you can’t
decorate your own unit.
How it works: You buy the
right to occupy a vacation
property for a few weeks of
the year.
▪ Advantages: You can
reduce the cost of a vacation
since properties such as
these can sometimes be less
costly than staying in a
hotel.
▪ Disadvantages: Unlike
condo hotels, you don’t get
any income from a
timeshare. They also have a
mixed history when it
comes to resale, and some
have been resold at a loss.
Ownership How it works: You go out
and buy a second home, or a
How it works: Like a regular condo or apartment,
timeshare, you buy the right somewhere you ‘d like to
to occupy a vacation vacation or retire.
property, though typically
you can use it for a longer
▪ Advantages: You can use
period of time than a
the property whenever you
timeshare.
want, and unlike some of
the other options here, you
▪ Advantages: You can stay get to decorate it as you
in an often upscale vacation wish.
spot for less money than
buying a home there. The
▪ Disadvantages: You’re
resale value has value has
responsible for all of the
been fairly strong in high-
upkeep, from moving the
end markets.
lawn to cleaning the gutters.
And finding tenants if you
▪ Disadvantages: You have want to rent it out.
to share the property with
other people. They aren’t
typically rented out so
there’s no chance for you to
get a bit of extra income.
MARKET CONDITION
→ The real estate market moves through cycles. These cycles are
caused by supply and demand issues.

Low Demand Supply High

Home Values
Low Supply Demand High

Buyer’s Market Seller’s Market

WAIKIKI Located on O’ahu’s south shore between Diamond Head and Pearl Harbor, today Waikiki is
one of the tourism capitols of the world. Waikiki is a place to have fun, eat out, shop, or
watch a show. While permanent residents in Waikiki number more than 28,000, over 4.5
million of Hawai’i’s 6 million annual visitors come to O’ahu each year, most of these
staying in Waikiki. But it wasn’t always that way. The land that is now home to dozens of
resorts, nightclubs, and restaurants was once marshland used for farming taro, rice, and
fishponds. Waikiki, which literally means “spouting waters” in Hawaiian, was once a place
where ali’i (Hawaiian royalty) came for healing, vacation, and surfing. It also provided
many of the most abundant fishing yields in the islands.

Popular Waikiki attractions include the Waikiki Aquarium and the Honolulu Zoo, the ‘Strip,’ or row of shops and restaurants
lining Kalakaua Avenue, and of course, the beach! Waikiki Beach is arguably the most famous beach in the world, with
thousands of visitors a day arriving to swim, surf, or simply lie out in the sun. Annual Waikiki events such as the Honolulu
Marathon, King Kamehameha Day Parade, and more frequent events--such as popular Sunset on the Beach movie showings
every weekend--have helped to make Waikiki a destination for locals and visitors alike.

Some historic sites of interest include the Moana Surfrider Hotel, the oldest resort in the
area, the Wizard’s Stones of Kapaemahu at Kuhio Beach, and the Waikiki War Memorial
Natatorium, a saltwater pool built in honor of World War I veterans.

Waikiki is a place of fusion--where modern amenities, shopping, entertainment and dining

meet a rich cultural history and unique tradition of hospitality-all tied up together in the
aloha spirit. Courtesy of Honolulu Advertiser.

Courtesy of Honolulu Advertiser

Investment Considerations
WHY HAWAII

• Timing (Price Trends/Projections)

• Established and Proven Property Market

• Established Leading International Vacation Destination

• Existing Domestic and International Demand

• Historical Rental Market Activity

• US Governing Law

• English Language

• Access to Reputable and Experienced Local Advisors

• Established Laws on Ownership & Conveyance Rights (absence of restraints on alienation)

• Established Landlord-Tenant Laws

• Established Estate & Tax Planning

• Absence of Discrimination Against Foreign Ownership

• Availability of Property Maintenance & Management

• Availability of Insurance Against Most Catastrophic Loss Events

• Significant State Investment in Marketing & Promotion of State

• Significant Private Investment in Marketing of State as International Destination

• Significant Investment in Public Transportation (with potential high speed rail)

• Significant State Investment in Renewable Energy

• Security / Headquarters for the US Pacific Command (USPACOM): US Army Pacific, Marine Forces Pacific, US Pacific Fleet,
Pacific Air Forces
Local Market Update – March 2011
A RESEARCH TOOL PROVIDED BY THE HONOLULU BOARD OF REALTORS®

- 25.3% + 3.0% - 18.5%

Change in Change in Change in
Waikiki New Listings
All Properties
Closed Sales
All Properties
Inventory of Homes
All Properties
1-2-6
March Year to Date
Single-Family 2010 2011 +/– 2010 2011 +/–
New Listings 0 0 -- 1 0 - 100.0%
Closed Sales 0 0 -- 0 0 --
Median Sales Price $0 $0 -- $0 $0 --
Average Sales Price $0 $0 -- $0 $0 --
Percent of Original List Price Received 0.0% 0.0% -- 0.0% 0.0% --
Median Days on Market Until Sale 0 0 -- 0 0 --
Inventory of Homes for Sale 2 1 - 50.0% -- -- --
Months Supply of Inventory 0.0 1.0 -- -- -- --

March Year to Date

Condo 2010 2011 +/– 2010 2011 +/–
New Listings 154 115 - 25.3% 419 375 - 10.5%
Closed Sales 66 68 + 3.0% 164 192 + 17.1%
Median Sales Price $318,500 $296,000 - 7.1% $286,500 $299,500 + 4.5%
Average Sales Price $315,469 $380,513 + 20.6% $301,877 $347,048 + 15.0%
Percent of Original List Price Received 93.2% 92.8% - 0.5% 92.1% 92.9% + 0.8%
Median Days on Market Until Sale 57 54 - 5.3% 61 54 - 11.6%
Inventory of Homes for Sale 597 487 - 18.4% -- -- --
Months Supply of Inventory 10.3 8.0 - 22.7% -- -- --

Change in Median Sales Price from Prior Year (6-Month Average)*

Single-Family Detached Townhouse-Condo Attached
All MLS All MLS b
Waikiki Waikiki a

+ 6% + 20%

+ 4%
+ 15%

+ 2%

+ 10%
0%

- 2% + 5%

- 4%
0%
- 6%

- 5%
- 8%

- 10%
- 10%
1-2008 1-2009 1-2010 1-2011
1-2008 1-2009 1-2010 1-2011

* Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot
are proportioned according to their share of sales during that period. | All data from the HiCentral MLS, Ltd. | Powered by 10K Research & Marketing.
 $400
STUDIO WAIKIKI FEE SIMPLE HISTORICAL AVERAGE PRICES
Studio w/ Full Kitchen & 1 Parking Data herein represents all fee
simple studios in Waikiki. Exclude
Studio w/ Kitchenette & No Parking
Average Price ( x $1,000)

$320 Luxury & Oceanfront condo bldgs.

% indicates appreciation / depreciation rate per year 4%

12%
$240 $255 ➡11% ➡1%
24% $244 ➡8%
$228 $226
27% $214 10%
31%
➡3% $208
$187 ➡10%
$160 $186 $181
7% $169 ➡13% ➡1%
9% $163
11% 24% $142 $140
$135
$125 17% $116
$114 8%
$80 $101 36%
$88
$67 $73
$43
$0
00

01

02

03

04

05

06

07

08

09

10
20

20

20

20

20

20

20

20

20

20

20
$600
1-BEDROOM WAIKIKI FEE SIMPLE HISTORICAL AVERAGE PRICES
Data herein represents all high-rise, fee simple,
1 BEDROOM SOLD
Average Price ( x $1,000)

1-bedroom, 1 bath, and 1 parking in Waikiki.

$480 Exclude Luxury & Oceanfront condo bldgs.

% indicates appreciation / depreciation rate per year

11% ➡5%
$360 16%
➡2%
3%
$369 ➡10%
$352 $346
28% $329 $322
$313
$240 $275
12%
9%
10% $199
$161 $176
$120 $145

$0
0

0
0

1
20

20

20

20

20

20

20

20

20

20

20

2-BEDROOM WAIKIKI FEE SIMPLE HISTORICAL AVERAGE PRICES

$800
Average Price ( x $1,000)

Data herein represents all high-rise, fee simple, 2-

2 BEDROOM SOLD bedrooms, 2 baths, and 1 parking in Waikiki.
$640 Exclude Luxury & Oceanfront condo bldgs.
% indicates appreciation / depreciation rate per year 6% 0% ➡3%
$480 24%
$494 $496 $483 ➡14% ➡3%
$465
15% $415 $401
$320 16%
$353
9%
➡2% $301
$235 $253
$230
$160

$0
0

0
0

1
20

20

20

20

20

20

20

20

20

20

20
 Waikiki Condominium & Hotel Map
Updated 11-18-2010

69 36 19 66 33 2 14 3 21 60 459
72 40 7 29 10 8312 23
81 70
53 6816 6 15 8 80 54 55
46 61 56 73 18
13 J 41 34 8486 5
43 64 A 51 31 71 P 47 27
32
1 49 48
O 59 K G 77 85
88 B N 17 50
57 62 4
76 39 M
25 44 H W
24 I S 22 26
52 78
42 T
87 67 R L 30 Y
89 79
90 63
U V
35 11 20 58 65
74 28 75 C
F X
E 38 D
37
82
Q

Waikiki Office
2255 Kuhio Avenue, Suite 117
Honolulu, Hawaii 96815
Phone: (808) 953-2100

1. 1717 Ala Wai 21. Boulevard Tower 41. Kaiolu Sunrise 61. Oahu Surf 1 & 2 81. Waikiki Landmark Popular Waikiki Hotels:
A. Ambassador Hotel Waikiki
2. 2121 Ala Wai 22. Cabana at Waikiki 42. Kaioo Terrace 62. Pacific Monarch † 82. Waikiki Shore B. Doubletree Alana Hotel
3. 2233 Ala Wai 23. Canal House 43. Kalakauan 63. Palms at Waikiki † 83. Waikiki Skyliner C. Embassy Suites Waikiki Beach
4. 2465 Kuhio at Waikiki 24. Canterbury Place 44. Kalia Inc 64. Pavilion at Waikiki 84. Waikiki Skytower D. Halekulani Hotel
E. Hawaii Prince Hotel Waikiki
5. 250 Ohua 25. Chateau Waikiki 45. Kealani 65. Pomaikai 85. Waikiki Sunset †
F. Hilton Hawaiian Village Resort
6. 441 Lewers St 26. Crescent Park 46. Keoni Ana 66. Regency Ala Wai 86. Waikiki Townhouse G. Hilton Waikiki Prince Kuhio
7. 444 Nahua 27. Diamond Head Vista 47. Kon Tiki 67. Regency on Beachwalk † 87. Wailana at Waikiki H. Holiday Inn Waikiki Beachcomber
8. Ainahau Gardens 28. Discovery Bay 48. Kuhio Ebbtide 68. Rosalei Ltd 88. Waipuna I. Hyatt Regency Waikiki Beach Resort
J. Maile Sky Court
9. Ala Wai East 29. Fairway Villa 49. Kuhio Plaza 69. Royal Aloha 89. Watermark, The K. Miramar at Waikiki
10. Ala Wai Palms 30. Foster Towers 50. Kuhio Village I & II 70. Royal Garden at Waikiki † 90. Windsor, The L. Moana Surfrider A Westin Resort
11. Ala Wai Terrace 31. Four Paddle 51. La Casa 71. Royal Kuhio M. Ocean Resort Hotel Waikiki
12. Ala Wai Townhouse 32. Governor Cleghorn 52. Laniakea Apts 72. Seaside Suites N. Ohana Waikiki East
Properties with the † are O. Ohana Waikiki Malia
13. Allure Waikiki 33. Hale Moani 53. Lanikea at Waikiki 73. Seaside Towers designated as a Condo P. Ohana Waikiki West
14. Aloha Lani 34. Hale Walina 54. Leisure Heritage 74. Tradewinds Hotel Hotel or Condotel. Q. Outrigger Reef on the Beach
15. Aloha Surf Hotel † 35. Harbor View Plaza 55. Liliuokalani Gardens 75. Trump Tower Waikiki † YZ R. Outrigger Waikiki on the Beach
All Condominium and Hotel S. Pacific Beach Hotel
16. Aloha Towers 36. Hawaiian Monarch † 56. Loft at Waikiki 76. Villa on Eaton Square T. Queen Kapiolani Hotel
17. Bamboo † 37. Ilikai Apt Bldg † 57. Luana Waikiki † 77. Waikiki Banyan † locations are approximated.
U. Ramada Plaza Waikiki
18. Beachside Apts 38. Ilikai Marina 58. Marina Towers 78. Waikiki Beach Tower † V. Royal Hawaiian, The
19. Bel-aire, The 39. Inn on the Park 59. Marine Surf Waikiki † 79. Waikiki Grand Hotel † Please visit us at: W. Sheraton Princess Kaiulani Hotel
www.c21allislands.com X. Sheraton Waikiki Hotel
20. Big Surf 40. Island Colony † 60. Monte Vista 80. Waikiki Lanais Y. Waikiki Beach Marriott Resort
 All Islands Exclusive
Eco-Friendly
Waikiki Walking Tour
Preview Waikiki’s Hottest Properties Every Wednesday
Meet at 9:30 am at the Waikiki Trade Center Ground Floor Century 21 All Islands.
Learn about Condotels, Leasehold vs Fee Simple, Lender Qualifications & More
View Properties in Different Price Ranges.

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開催日時：毎週水曜日朝９：３０から約２時間（１０分前にはお集まり下さい）
集合場所：Century 21 All Islands のオフィスへ直接おこし下さい（クヒオ通りワイキキトレードセンター内１階・スター
バークスの裏手、めんちゃんこ亭の隣）

Century 21 All Islands Waikiki Office

Waikiki Trade Center
2255 Kuhio Ave., Ste. 1220, Honolulu, Hi 96815
Phone: (808) 953-2100
No Reservations needed. Walk-ins are welcomed.

Each office is independently owned and operated.