Big Island's Puna Frontier Land Rush
After nearly 15 years, a second and more rapid investment boom is now underway amidst the Big Island's vast Upper and Lower Puna subdivisions. During the first "boom" in the early 1990's, developers and speculators carved up large tracts of land into 70,000 lots in this area that is roughly the size of Oahu. However, prices did not accelerate nearly as fast or by as much during the earlier land rush.
Even in Hawaii's hot real estate market statewide, investment attention is clearly drawn to the fast-accelerating prices of vacant Puna lots. The median price for a lot in March 2002 was $7,375. That figure jumped to $14,700 in March, 2004, and $32,500 twelve months later in March, 2005 as 452 transactions closed.
Historically, the Puna subdivisions represented the one place where a regular island restaurant or hotel worker could still buy land and build a house. In earlier years, mainland buyers were not focused on the area, but that is certainly no longer the case: many are now quickly purchasing lots and building homes to live in or rent out.
In 2004, building permits were issued for 868 new Puna homes. That figure was about equal to the total number issued for the entire island in 1998.
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