The extensive revitalization of Waikiki has transformed Oahu’s tourist district into a trendy neighborhood. With businesses pumping in billions of dollars to establish the new Waikiki Beach Walk and renovated Royal Hawaiian Shopping Center, Waikiki has more shopping, dining and entertainment options than ever before.

Surprising, the appeal of this rejuvenated Waikiki has not yet translated into booming prices and sales. In 2007, sales were slightly down one percent from the previous year, with the average condominium price coming in at $285,000. In 2006, the one exception to this trend was the sale of the wildly popular Trump Tower Waikiki, which sold out for more than $700 million in eight hours. The sale of this luxury development took place in both Japan and Hawaii, confirming Waikiki’s reputation for being over-run with rich international investors.

But the profile of Waikiki buyers are diversifying says Prudential Locations Realtor and Partner Jodee Farm. Waikiki is not just attracting the traditional offshore investors, but also local buyers looking for affordable, conveniently located condominiums. Farm predicts that this mix of buyers will create an active year for sales in the Waikiki area.

Another growing trend in Waikiki is the dominance of condo-tels, which are hotel units converted into condominiums and put for sale on the market. Typical buyers are real estate investors looking to build their portfolios, as condo-tels are not sold as primary residences. If Hawaii’s tourism industry continues to hold steady, condo-tel owners can expect to will reap the benefits of the renting out their unit. Keep an eye out in the coming year for the arrival of more condo-tel units on the market.