Luxury Home Magazine

U.S. Buyers: Hawaii Holds the Key P R E S E N T E D B Y T I T L E G U A R A N T Y WHO I S BUYING HAWAII PROPERTY in 2016? Title and Escrow is our business. Hawaii is our home. Visit TGHawaii.com S E R V I N G H AWA I I S I N C E 1 8 9 6 MIKE B. PIETSCH CHIEF OPERATING OFFICER TITLE GUARANTY Mike B. Pietsch, TG’s Chief Operating Officer “With over 120 years of service in Hawaii, and a deep connection to the community, Title Guaranty can support all real estate transactions that include foreign buyers and kama‘aina alike. Our talented and experienced staff have worked with global clientele and are here to support you through every step of the purchase with expert staff who also call Hawaii, home.” W orldwide market conditions, declining visitor arrivals to the islands, low inventory and high demand have driven statewide median sales prices to unprecedented heights. Despite these trends and growing investment interest among foreign buyers, it is domestic buyers, particularly Hawaii residents, that dominate island purchase activity. In the first half of 2016, Japanese buyers alone have purchased 340 Hawaii properties, or 76% of the total foreign buyer market. By comparison, Canadian buyers purchased 13% of the total foreign buyer market, followed by Chinese buyers at 3%. The remainder of foreign buyer purchases were made by buyers from 18 other countries. Though foreign investment into Hawaii property continues to grow steadily year-over-year, the numbers continue to tell the story that local residents are by far the top purchasers of Hawaii property and remain the key to island real estate. The chart on the right indicates 7,285 properties (85% of all year-to-date Hawaii property sales) were purchased by Hawaii residents, followed by California (9%), Japan (4%), and Washington State (2%). Domestic buyers, particularly Hawaii residents, purchased the vast majority of Hawaii Property. In closing, despite the sharp increase in Japanese buyers in 2016, the foreign market as a whole is relatively small in comparison to the domestic market. Though this demographic was the largest of any foreign buyer group, only 4% of all Hawaii property was purchased by Japanese buyers. Note: January to June 2016 Data Note: January to June 2016 Data January toJulyData total foreign buyer market 76 % canadian buyers 13% chinese buyers 3% for all the other countries 8% - 200 400 600 800 Top 10 State Buyers 1. Hawaii (7,285 | $4,109.6M) 2. California (745 | $643.6M) 3. Washington (180 | $167.7M) 4. Texas (119 | $82.9M) 5. Florida (86 | $58.4M) 6. Colorado (73 | $65.5M) 7. Oregon (73 | $46.4M) 8. New York (57 | $90.8M) 9. Arizona (53 | $56.8M) 10. Nevada (48 | $38.4M) Top 10 Foreign Buyers 1. Japan (340 | $420.6M) 2. Canada (60 | $52.6M) 3. China (12 | $9.8M) 4. Hong Kong (9 | $14.8M) 5. Guam (5 | $2.6M) 6. Korea (3 | $11.2M) 7. Taiwan (3 | $2.6M) 8. Australia (2 | $8.9M) 9. Virgin Islands (2 | $4.8M) 10. England (2 | $1.2M) A Closer Look at 2016’s Foreign Buyers 7,285 , 85% 745 , 9% 180 , 2% 340 , 4% Hawaii California Washingt on Japan SOURCE: Multiple Listing Services from respective Boards of REALTORS ® , Bureau of Conveyances, and Title Guaranty. Information Deemed Reliable But Not Guaranteed. 7,574 , 87% 794 , 9% 179 , 2% 177 , 2% Hawaii and Japan vs. Top 3 US State Buyers Note: Jan to Jun 2015 Data Japan vs. Top State Buyers