The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-03-29
AS TO REAL ESTATE.

As ~ KEAL CSIAIC.
1t Is natural that people who are not
disinterested parties, having land for
sale, should think that the prevailing
prices of real estate are reasonable.
That is their business. But we still in
sist, and most homeseekers and visitors
from the Mainland will bear us out in
saying, that Honolulu prices. which are
higher in proportion and even higher
directly than those which obtain in the
metropolitan district of San Francisco,
are inflated prices and if not relieved
must, in the end, stop the growth of
Honolulu as they are checking it now.
What is it that gives value to urban
property? There are many factors,
and chief one is the anticipation of
great urban growth. If one may be
sure, for example, that Honolulu will,
in a few years. have 600 inhabitants,
prices may justly be held at rather
stiff figure But is it reasonable to
hold them at higher figure or as high
a figure. proportionately or directly, as
those which rule in city that has
achieved $4,000 people or more and is
on its way to getting half million?
San Francisco lots are as sure an in
vestment as Government bonds. Are
Honolulu lots? Perhaps. But until we
know more about the future we cannot
say, while a sufficient future to deter
mine realty values has already been
reached by the Coast metropolis.
Mr.. Ables, in his thoughtful interview
printed elsewhere, attributes some Of
the high prices of real estate to high
prices for other things, notably the
general cost of living. But has he not,
in this case, put the cart before the
horse? Did not the sudden imitation of
land prices after 1898-when suburban
property bought a little time before at
say. $500 an acre, was suddenly advanc-
ed In subdivided form to $4,000 an acre
did not this initiation cause other
prices to go up? There is much to be
said on this point which we shall leave
to be treated in a subsequent issue by
an old resident of Honolulu who will
supply us with an interview. We shall
not anticipate his facts and arguments.
The Advertiser had hoped to keep
this discussion out of the domain of
the pettifogger but the parties on the
other side, as represented by the organ
of a local land syndicate, advance
this preposterous plea:
Just as they rushed to Honolulu after
annexation" Here indeed is a discovery.
The esteemed morning contemporary has
found something which neither business
men, those interested in tourist travel,
the mercantile houses, commission
houses, the sugar plantations nor the
statistical bureaus have found-a rush
to Honolulu.
BY what line of travel did this rush
approach Honolulu? Whence did X take
its departure? Where is the transient
boom population to which this rush
must necessarily refer? Where can there
be found any basis whatever for the
statement that people rushed" to Ho
nolulu after annexation?
Such a statement in view of the
throngs of strangers who came here
between annexation day and the out
break of the plague, who filled the
streets with unfamiliar faces and the
papers with new advertisements and
who did their part in running up the
population from 22, 900 to $4,000, is sheer
audacity. When steamers came crowd
ed and high-priced hotels and boarding
houses were congested and Honolulu
was building up in all directions, that
meant, a rush." and the effects. as
seen now, are precisely those of a
boom, organs owned or controlled by
land promoters to the contrary not
withstanding.
/ The signs of a collapse in this boom
are as recognizable to anyone who has
been through the imitation periods on
the Coast as are the weather signs to
Ia meteorological Fine places are being
Eoffered for sale all over this town.
Every large real estate dealer has
list. But are these fine places selling?
How many deals have lately been made
lin proportion to the number of proper
ties offered? Is it not the case that the,
reason for this partial paralysis of the
market lies in high prices?
There is left us, however, "a means of
escape: Rapid transit will open up far
suburban tracts. and If the lots are sold
at proper valuation Honolulu will
continue to grow. But the danger is
that, when rapid transit comes, tract
owners Will mark up their lots to a
figure which will check progress again
1t would be illogical for them to do it.
but under the Indictment of real estate
speculation men do irrational things
If, however, these people will be content
with such prices as prevail in the
suburbs of San Francisco-as city, nearly
ten times larger than Honolulu-our
people may come out of their present
very palpable difficulty without being
badly singed.
haP