Kauai Newsletter
October  2004

Aloha!

This fall brings news of a thriving economy and real estate market, along with some of the growing pains associated with it, and some recent adjustments in the Garden Island's delicate balance between nature and its human inhabitants.


Of Monk Seals And Men

For example, the monk seals of Poipu. For the past several years mother monk seals have been bearing and rearing their young near the keiki pond (which was named for its suitability for human children) in popular Poipu Beach Park. The pups are awfully cute, and the seal moms are awfully protective of them, so park officials rope off large sections of the beach from the public for several weeks during the peak summer tourist season for the protection of both seals and people. Still, the seals don't always recognize the boundaries set for them, and friction can arise. Two pups were born this summer, and the beach was roped off for several weeks. Nevertheless, a monk seal bit a tourist who got too close, resulting in this one-of-a-kind headline in the Honolulu Advertiser:

"Monk seal on Kauai bites pushy tourist in the butt".

The tourist later wrote an explanation for the paper saying that he was only trying to get away from the seal when he got bit. "It was a terrifying experience," he wrote. "I have never felt so helpless in my life."

Encounters like this, however good they may be for adding color to local journalism, are bad for visitors, bad for the island's image, and probably not good for the seals either. As soon as the two seal pups were weaned this month, wildlife officials rolled them into nets and relocated them to an undisclosed remote North Shore beach. (Perhaps now they'll come up to sun themselves at the beach behind the Princeville Hotel!)

Protecting the monk seals is certainly the right thing to do, and has resulted in substantial growth of the island's endangered monk seal population. But we must also face the fact that protecting the seals in areas like Poipu ensures their continued presence there, and continued friction with beach-goers. In many ways, the monk seal issue is emblematic of Kauai's struggle as a whole as it moves from rural, agriculture-based economy to tourist haven. It is a struggle that offers no easy answers, but requires patience, tolerance, and cooperation among all segments of our population if we are to make any progress at all.


North Shore Preservation

And we are. A new case in point is the agreement between Kamehameha Schools (Hawaii's gigantic trust formerly known as the Bishop Estate) and the Nature Conservancy to have the conservancy manage 1,500 acres of forest land in the Lumahai Valley on Kauai's North Shore. This inland portion of Lumahai is "as close to pristine as any lowland forest and stream system can get in the Hawaiian Islands," according to conservancy official Sam Gon. "There are very few places remaining where you can stand at low elevation in a river valley bottom and se native forest running from river edge to ridge top."

The forest includes many native ohia trees and native shrubs, but is under siege by non-native plants, goats, and pigs. The conservancy will try to eliminate weeds and use volunteer hunters to control the animal population. Kamehameha Schools, which holds vast tracts of undeveloped land but has sold others for development, signed the agreement because it believes that preserving the native environment is crucial to preserving and understanding Hawaiian culture.

Also on the North Shore, the U.S. House has approved a bill that would more than double the size of the Kilauea Point Wildlife Refuge. The bill will now go to the Senate for approval.


Development in Poipu

On the other end of the island, in the Poipu area, a new thousand-acre, 1,500-unit development project has won approval from the county, and developers plan to start construction in late 2005 or early 2006. The project, named Kukuiula for the land it occupies, was originally planned for twice the density it will now have. It will be located from just west of Poipu Road to the Lawai Valley. A joint venture between Alexander & Baldwin and Scottsdale-based luxury home builder DMB Associates, the development will contain a mix of homes, townhouses, parks, archeological preserves, a neighborhood commercial center, an 18-hole golf course, and possibly a 62-room hotel. Homes are expected to be priced in the million-dollar range. Some local residents are concerned about the traffic impact. The developers have agreed to build a bypass from the property to Koloa Road west of Koloa town, and to by a right-of-way to continue the bypass north to Maluhia Road, although there is not yet a plan to grade and pave the northern section of the planned bypass.

Also in Poipu, an Oahu group has purchased Poipu Shopping Village, and this company has clients like Chanel and Gucci, so look for upscale shops there in the future. The new owners, Honu Group, will add 75,000 square feet of resort-oriented shops and restaurants, and will triple the size of the existing shopping center. Construction could begin by early 2005.


New East Side Projects Selling Rapidly

On the east side of the island, two new projects have come close to selling out before ground has even been broken. The upscale Waipouli Beach Resort, a planned beachfront condominium project with a swimming pool, restaurant, and spa, is one of the first new developments on the burgeoning east side in 20 years, and investors seem eager to plunge in. Only 25 to 30 condos of the 190-unit development are left for sale, at prices from $495,000 up to $2.5 million. Please contact me if you'd like more information.

The other east side project is the conversion of the Aston Hotel into studio condominiums. The Aston has been a very successful beachfront resort for many years. Features for the new condos include granite countertops, marble floors, and tasteful Hawaiian decor. Most of these have already sold out too, but there are some nice units still available, and the prices are quite reasonable, from $210,000 to $325,000. All units are studios. Please let me know if if you'd like more information.


Not Just Resorts

But not all the development on the east side is for the resort crowd. The YMCA broke ground this month on an $8.8 million new facility that will include a multipurpose building, a swimming pool, and a wellness center. Later they plan to add batting cages, a daycare center, locker rooms, and administration building, and a gymnasium. We all owe a big mahalo to the Y for providing this much-needed community service.


A Word About Timeshares

In other news, a recent survey shows that Kauai leads the state in timeshares, with 1,996 of the state's 5,735 units. Timeshare is a growing industry and an increasingly important part of the state's economy. It helps stabilize the often cyclical visitor business, since timeshare owners have already paid for their stay and tend to come no matter what. Even September 11th didn't keep them away. Another probable reason for the growth is Kauai's growing stature as a travel destination. Readers of Travel & Leisure magazine this year voted Kauai the best Hawaiian island.


Real Estate Statistics

Partly because of its growing popularity as a desirable place to live and partly because of low mortgage interest rates and a low supply of inventory, housing prices have continued to climb. The median price for a Kauai home now stands at $485,000, 35 percent higher than last year. The median price for condos is down slightly at $330,000 from last year's $331,500. The median land parcel sold for $312,500, an increase of 5.4 percent over last year's $296,500.

In the Hanalei district, which includes Kilauea, Princeville, Hanalei, and Haena, the median home price increased 32 percent to $860,000, from last year's $649,900. Condo prices declined by 19 percent to a median of $410,000 to last year,s $507,145. Land went up a whopping 138 percent, from a median of $900,000 compared with last year's $378,750. In part, this may be due to the sale of a couple of large beachfront parcels, but land has been rising rapidly in value on the North Shore as developments such as Kalihiwai Ridge get built out.

On the South Shore, which includes Poipu, Koloa, Kalaheo, and Lawai, there was an impressive 97 percent increase in median home price, which now stands at $747,500 compared with last year's $380,000. Condo values there increased 33 percent to a median of $525,000 from last year's $395,000. Land went up over 35 percent, to a median of $338,000 from last year's $250,000.

Kauai's boom has resulted in a growing shortage of affordable housing for the local populace. Many have left for jobs on the mainland, though unemployment here continues to be low, at 4.1 percent. Job growth on Kauai has outpaced the state's, and has been pervasive across the economy. The standbys of construction and tourism remain strong, and professional, business, and health services are also showing strength. In fact, employers say it is hard to find qualified applicants, especially for skilled jobs. It is important for the island to concentrate on improving education and finding ways to provide affordable housing if we are all to live in harmony and maintain a spirit of aloha.

That’s all for now. Please feel free to e-mail me with real estate questions, and remember, the week before your next visit to the island, you may CALL OR E-MAIL ME and I’ll e-mail you appropriate listings. You can then sift through them and select the most promising so that you don’t waste precious vacation time wandering around open houses or running to last-minute showings. I'll be seeing you!

With warmest aloha,