Bargain Condos in Hawaii? Honolulu Reported Among Weakest U.S. Markets

Brave investors might want to take a vacation soon in Hawaii to shop for a bargain. Honolulu is among the 25 weakest housing markets in the U.S.,Forbes magazine using Moody’s Economy.com has reported, with prices expected to drop 30.9 percent by 2011.

Why? fewer affluent buyers from Asia and California looking for vacation homes and investment properties, the report said.

But Harvey Shapiro, research economist for the Honolulu Board of Realtors, told Pacific Business News: “My feeling is that the report isn’t really relevant here. Our prices went down 3 percent last year. There are some drops, but they are in the single digits.”

According to listings on Escape Homes, a 1 BR, 638 square-foot condo, in an apartment building in the Makiki area, shown above, recently sold for $305,000. Another is listed for $293,000

Robb Reports "Best" Vacation Properties

Speaking of the Robb Report, as we did the other day, connoisseurs of luxury properties will be interested to learn that the magazine has named the El Dorado Golf and Beach Club near Baja California's (Mexico) Cabo San Lucas as its numero uno for its 2008 "Best of the Best" issue in the category of vacation properties where homes can be built and/or bought. The runners-up are: The Cliffs at Keowee Springs (pictured), South Carolina... Palazzo Tournabuoni in Florence... and Residential Suites at the Ritz Carlton, Kapalua, Hawaii.

Hotels.com Plugs Condos, Vacation Home Rentals

The Website hotels.com is playing up vacation homes and condos more in addition to its usual hotel/motel listings, Steve Dumaine, director of specialty lodging, told me recently. A survey by hotels.com has identified a "huge untapped pool of travelers who have never rented a vacation home property," he said. Instead they tend to think exclusively about hotels. "From a value standpoint, it's important for them to understand that with a 3-BR condo, versus 2 or 3 hotel rooms, you're getting a lot more," Dumaine said. When travelers to a classic market such as Orlando or Hawaii try and enjoy the well-chosen vacation home or condo, they are very likely to become repeat customers.

No Debt: BelleHavens' Smart Club Pitch

The destination club BelleHavens, which is in the same deluxe class as Exclusive Resorts and Quintess, has a unique selling point that should appeal to mortgage-wary travelers: the homes in its portfolio are owned by members rather than the club's overseers, and are debt-free. BelleHavens thus calls itself the first "equity membership" club with asset protection as a key factor. That doesn't mean that visits to properties such as those at La Quinta, CA (shown); Palm Coast, FL; Kohala Coast, Hawaii; Hilton Head, SC; Los Cabos, Mexico; and midtown Manhattan come cheaply. The current price of a BelleHavens Equity Membership is a one-time deposit of $225,000 and annual dues of $18,500. Still, that means a reasonable average price of about $615 per night based on 30 nights annual usage. And peace of mind? Priceless.

A "Must-Have" For Second Home Rentals

Everybody in the tub! An expert in Hawaii rentals says the must-have amenity for a second home toget more rentals is a hot tub. That's the word via Inman News from Bill May, whose company owns and maintains more than 100 resort and rental properties in Hawaii and the mainland. "It's a four-season amenity.... It would probably pay for itself three times over in less than a year," Says May.