The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-03-28
THE PRICE OF REAL ESTATE.

My friend Smith of the Advertiser has
evidently formed his opinion of values
Of real estate from association with
people who are not in the market as
purchasers or as sellers, for L think THAI,
considering actual conditions here, a
man of moderate means can buy a
homestead cheaper than in any city OF
the Mainland such as may properly be
compared with Honolulu. There must
not be comparison of this City with any
but a seaport, or railway center, CT
some natural focus of commerce upon
the Mainland
Well. let US make the comparison
with the seaport of San Diego, place
which has a much larger white popu-
Iation than Honolulu, which is the one
satisfactory sea entrepot of Southern
California and which is the southwest
ern terminus of the Santa Fee system
of railroads 1t is also the center OF the
western lemon industry. Lots % by $50
feet may be had there in the suburbs
today-suburbs that have rapid transit
for 800 apiece; and on Coronado
Beach. the ocean suburb, twenty min
utes' ride from the San Diego City Hall
by trolley cars and ferry, lots have
been selling even lower than that. Yet
a few years ago lot prices went as high
as the ones which rule today in Homo
lulu. The story of how they came down
to bed rock is very interesting and not
without local application.
People rushed to San Diego when 1t
got into direct railway connection with
the East just as they rushed to Homo
lulu after annexation; and there as
here the old residents put up the prices
of land in view of a strong market. A
speculative era followed in which val
ues--or what passed for vaiues-reached
a point where nobody could buy prop
erty with the expectation of selling 1t
again at an advance and where holders,
greedy for great gains and anxious to
ayeid paying taxes ON inflated values,
were ready to unload: But the fears of
spectators, supplemented as they were
by the inability of homeseekers to, pay
the ruling prices, suddenly and abso-
lutely checked sales and paralyzed the
market. For years prices were held up
by main force; then they came down
on the run. and San Diego once more
got into healthy state and is now re-
Stunning its, upward climb. Property is
within reach again and strangers are
coming to buy it.
The Advertiser has feared anu still
fears that Honolulu is getting itself in
to the original San Diego difficulty.
Booms automatically suppress them
selves; and it is nothing less than a
boom we have been having since 1898.
1t is so recognized by visiting finan-
ciers; it is SO in fact. But it is begin
ming to show the earlier signs of col
lapse. During the past six months some
fine properties have been put on the
market and Withdrawn because of the
altitude of the upset price. The other
day the Emma Hall property had that
experience. Suburban sales of lots
have been slow. At the College Hills
sales, while rich men We're generous in
their bids, the number of individual
sales was small. All these things indi-
cate to our mind that the time will
soon come when small homeseekers will
not try to buy; when nobody but a rich
man can afford to purchase a home
stead in Honolulu. Let that day ar
rive and the growth of the city's popu-
lation will cease. Hundreds of people,
1T is said, who came here during and
after 1898 to settle, went back because
of the high prices of real estate. Some
of these men were well able to, pay any
price. One of them, an eX-Minister Of
Commerce in Tasmania, who rented the
home of L. c. Ables last summer, told
the writer that Honolulu real estate
was IS per cent higher in price than it
had any right to be. These men, we
say, left us. Others are not coming
now to take their places. Will any one
come hereafter If the upward scale of
prices is maintained2
Says Mr.. Lansing:
t My recollection of values of unlmprov-
ed residence property in San Francisco,
dating back seine two years ago when
L was last there, Is that lots of 25-feet
front, situated In the Park addition and
some thirty minutes from the business
center by electric or cable car, were held
at 800 front foot.
We do not call to mind the prices In
the specific Park Addition. There are
half a dozen or more tracts plated near
the Park and when we We're there, a
year ago last October, a sign Offering
lots at $500 and upwards had been
erected on the Sacramento street car
line near the Maria Kip Orphanage.
Across the bay. within easy access of
San Francisco, realty was cheaper than
it is today at Pearl City. But let US
look at the evidence given by adver-
tisements in the Examiner of Sunday,
March II:
WANTED-For spot cash, a lot in Rich
mond district; not to exceed $500. FL
deity Real Estate Co.. 2O7 Montgom-
cry street.
We suppose the man who wanted
such lot at such a price felt reason
ably sure of getting an offer when he
advertised. And yet Richmond district
may be the geographical center of in
habited San Francisco within the next
seven years. 1t Is a populous aL~->.on
now.
Here are some tell-tale San Francisco
prices from the same newspaper source:
FOUR flats south of Market ST., In good
condition; new plumbing, etc.: rent
$40; price $3.50.
Four flats should occupy 100 by 100
feet. South of Market there is a white
population of 10000 people.
500 each-2 lots. 25x125 each: blocks
from electric cars; blocks from Ocean
View, on north side of Lobos ST.. 700
feet east of Plymouth ready to build
on; only &c car fare; worth $500 each.
Decker. 1920 Market st.