guam real estate market update - cornerstone...

GUAM REAL ESTATE MARKET UPDATE

Siska S. Hutapea, MAI, AI-GRS, MRICS, MRE

President

Agenda

• CVG Team

• Lending Activity

• Real Estate Market Update

• Understanding Appraisals – Magnificent 7

• Conclusion

Siska S. Hutapea, MAI, MRE President

Carlos U. Diaz General Certified Appraiser

Gabriel F. Lombard General Certified Appraiser

Kimberly KonoResearch Analyst

Noah AustinResearch Assistant

LENDING ACTIVITY

Lending Activity 2012 – 2017 YTD 1Cornerstone Valuation Guam, Inc. Database, All rights reserved.

2017 YTD (through 3rd Qtr) 2016 2015 2014 2013 2012

Lenders

Amount No. of Trans

Amount No. of Trans

Amount No. of Trans

Amount No. of Trans

Amount No. of Trans

Amount No. of Trans($ mil) ($ mil) ($ mil) ($ mil) ($ mil) ($ mil)

Bank of Hawaii $95.3 144 $88.0 221 $97.6 166 $47.2 206 $60.4 225 $56.4 182

Bank of Guam $69.1 132 $104.0 190 $88.0 191 $126.0 201 $76.1 237 $74.1 226

First Hawaiian Bank $195.4 127 $71.1 176 $54.7 123 $94.2 130 $144.9 213 $124.6 218

Coast360 Federal Credit Union $29.6 132 $34.5 152 $33.4 146 $41.6 181 $31.9 154 $29.2 137

Community First Guam FCU $29.8 129 $26.0 128 $27.3 119 $27.0 137 $34.4 167 $37.0 202

Bank Pacific, LTD $22.5 98 $23.7 94 $25.1 95 $47.1 185 $39.5 164 $55.6 175

ANZ Guam Inc. $9.1 37 $23.6 72 $24.4 86 $22.7 64 $26.4 104 $34.3 162

Pentagon Federal Credit Unit [2] $42.8 163 $48.0 177 $5.3 26

Other $20.21 106 $25.2 131 $31.1 176 $50.6 101 $36.0 140 $83.4 235

Totals Lenders: $513.7 1,068 $444.2 1,341 $386.8 1,128 $456.4 1,205 $449.5 1,404 $494.7 1,537

% Change from previous year 15% 19% -15% -6% 2% -14% -9% -9% - -

[1] Based on 2017 YTD data through September (9 months)

[2] Recorded mortgage activity began 2015.

Lending Activity 2016 & 2017 YTDCornerstone Valuation Guam, Inc. Database, All rights reserved.

Bank of Hawaii20%

Bank of Guam23%

First Hawaiian Bank16%

Coast360 FCU8%

Community First Guam FCU

6%

BankPacific, Ltd.5%

ANZ Guam, Inc.5%

Pentagon FCU [1]11%

Other6%

2016

*Excludes four off-island lenders totaling $167.6 million.

ANZ Guam, Inc. 2%

Bank of Guam14%

Bank of Hawaii19%

BankPacific, Ltd. 4%

Coast360 FCU6%

Community First Guam FCU

6%First Hawaiian

Bank38%

Penatgon FCU8%

Other3%

2017 YTD (through 3rd Quarter)

* Excludes three off-island lenders totaling $7.1 million.

REAL ESTATE MARKET ACTIVITY

Guam Real Estate SalesSales Volume by Quarter

Cornerstone Valuation Guam, Inc. Database; All rights reserved.

2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3

Sales Vol. ($ M) $98.9 $246.7 $123.7 $89.9 $95.9 $206.5 $118.3

% Change 27% 149% -50% -27% 7% 115% -43%

-100%

-50%

0%

50%

100%

150%

200%

$0

$50

$100

$150

$200

$250

$300

% C

han

ge

Sale

s V

olu

me

($ M

illio

ns)

Guam Real Estate Sales No. of Sales By Quarter


2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3

No. of Trans. 301 369 341 335 367 413 387

% Change 1% 23% -8% -2% 10% 13% -6%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

400

450

Perc

ent

Ch

ange

No

. of

Sale

s

Guam Residential SalesTotal Sales Volume By Quarter


2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3

Sales Vol. ($ M) $58.1 $68.7 $66.9 $58.2 $66.4 $73.7 $75.6

% Change 12% 18% -3% -13% 14% 11% 2%

-15%

-10%

-5%

0%

5%

10%

15%

20%

$

$10

$20

$30

$40

$50

$60

$70

$80

% C

han

ge

Sale

s V

olu

me

($ M

illio

ns)

Guam Residential SalesNo. of Sales by Quarter


2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3

No. of Sales 205 264 250 236 268 297 293

% Change -2% 29% -5% -6% 14% 11% -1%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

50

100

150

200

250

300

350

% C

han

ge

No

. of

Tran

s

GUAM RESIDENTIAL MEDIAN PRICES BY QUARTERCornerstone Valuation Guam, Inc. Database; All rights reserved.

2016Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3

Sale Price ($) $220,000 $226,000 $230,000 $220,000 $218,250 $217,500 $230,000

Change (%) 2.1% 2.7% 1.8% -4.3% -0.8% -0.3% 5.7%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

$210,000

$212,000

$214,000

$216,000

$218,000

$220,000

$222,000

$224,000

$226,000

$228,000

$230,000

$232,000

Ch

ange

%

Sale

Pri

ce (

$)

COMMERCIAL/INDUSTRIAL PROPERTIESCornerstone Valuation Guam, Inc. Database; All rights reserved.

Two, one-story metal Warehouse – August 2017

$1.7 Million ($81 per sf of 21,000sf)

Royal Cargo Warehouse – January 2017


MULTI-FAMILY PROPERTIESCornerstone Valuation Guam, Inc. Database; All rights reserved.

Premier Apartments – October 2017

$5.5 Million ($58,511 per unit of 94 units)

Three-story Multi-Family Apartment – July 2017

$1.9 Million ($90,476 per unit of 21 units)

UNDERSTANDING APPRAISALSMAGNIFICENT 7

MAGNIFICENT 7

1. The Client

2. The Intended Users

3. The Intended Use of the Appraisal

4. The Purpose of the assignment, which includes the type and definition of value (with source)

We Value

MAGNIFICENT 7 (Cont’d)

5. The effective date of the opinion of value

6. The relevant characteristics of the property

7. Any assignment conditions such as extraordinary assumptions or hypothetical conditions

THANK YOU!

SI YU’US MA’ASE

TERIMA KASIH

guam real estate market update - cornerstone...

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