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The Honolulu Advertiser
Posted on: Thursday, October 23, 2003

New-home sales up 12.5% from last year on O'ahu

By Andrew Gomes
Advertiser Staff Writer

Sales at a new condominium project in Waikiki last month helped reverse a three-month slide in new-home sales on O'ahu, and made September the third-busiest month this year for developers.

The number of sales contracts for new homes signed in September grew 12.5 percent from 232 in September 2002 to 261 last month, according to data compiled by market researcher Ricky Cassiday for Hawaii HomeLoans.

The increase reversed June-to-August declines that developers said they suffered because they can't build homes as fast as they can sell them given constraints in construction worker staffing and permit processing.

Inventory at the end of last month remained relatively low, falling from 1,044 units in September 2002 to 611, a level that will continue to put pressure on the market, Cassiday said.

"There is almost half the number of units available today than there was a year ago," he said. "This is likely to continue, bringing with it higher prices, unless new projects enter the marketplace."

Lanikea, a 100-unit high-rise in Waikiki being developed by Alexander & Baldwin Inc. subsidiary A&B Properties, contributed 68 sales in September, Cassiday reported. The next biggest seller was Ocean Pointe in 'Ewa Beach by Haseko (Hawaii) Inc. with 38 sales.

The average price for units sold last month fell slightly to $363,078 from $375,926 in September 2002 because of fewer sales of more expensive single-family homes and more sales of generally lower priced multifamily homes. Cassiday said the average price was the lowest in the past 12 months.

The number of sales completed last month, which typically trails signed contracts by several months, almost doubled at 230, compared with 131 in the same month a year ago. Cassiday said it was the highest monthly closing count in five years.

Total revenue from closings last month was $75 million, compared with $46 million in September 2002.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.