“The best investment on Earth, is earth.”
Louis Glickman’s words poetically encapsulate the significance of land ownership as the ultimate means to make a deep-rooted and fruitful investment. At the Town of Aina Lea, we offer our prospective business partners and the future members of our community, a well-calculated land-based investment opportunity that will bring high-profit returns out of the fertile Hawaiian soil, ‘aina…
In addition to the world-wide demand and an increasing popularity, making landed property investment in Hawaii also holds an immense potential due to the regulations of the Hawaiian Government. The regulations for land use division within the State of Hawaii allow only 5% of the islands’ lands to be open for urban development. The limited space makes the land very difficult to acquire, and entitle, while increasing the value of approved residential and commercial construction plans.
Because of their rarity, properties in upscale neighborhoods have a very high per-acre value. In 2015 52.2 acres at Mauna Kea on the Gold Coast were sold for nearly $15 million that makes an average of $283.000 per acre. A year before, Reignwood International of Thailand, purchased 1,103 acres of resort area for $343 million.
The China Oceanwide Holdings acquired nearly 23 acres for $200 million planning to spend a total of $580 million to build three luxury branded hotels and one residential condominium. The Holdings also signed an agreement to turn 642 acres of land into a brand new resort, with an investment of over 2 billion dollars.
Hong Kong’s Qinghua International Holdings bought $21 million worth of properties near a shopping mall, in addition to a business tower purchased for $12 million. Similarly, the Hawaii-based real estate development firm ProsPac Holdings Group LLC (which is primarily supported by Chinese investors) recently made new purchases in downtown for almost $10M per-acre, and expected to develop a major mixed-use project that includes a variety of residential and retail spaces.
Investments of great size are not limited to land-based purchases in Hawaii. Dalian Wanda Group became the new owner of the Ironman race for $650 million. The biggest race event in the World, Ironman, attracts more than 2000 athletes worldwide and takes place in the Big Island.