Lack of Hawaii apartment inventory ‘stumps’ investors
Hawaii’s lack of apartment inventory “stumped” investors in 2013, according to a market summary report from Apartment Advisors, even as the average price for an apartment jumped 29 percent during the fourth quarter.
The average price per apartment unit topped $207,000 during fourth quarter 2013, the summary said, a 29 percent increase from the fourth quarter of 2012.
In all, 702 units in a total of 62 buildings were sold in 2013, compared to the 729 units sold in 2012.
“For the majority of 2013, a lack of quality inventory remained one of the biggest challenges,” said the report, which was authored by Jared Ikeda, president of Apartment Advisors. “Many investors flush with cash and equipped with historically low interest rates were stumped by the lack of properties available for purchase.”
A “whopping” 87 percent of all transactions were under $3 million, the report said.