Hawaii construction’s going up

CONSTRUCTION in the state of Hawaii is having a banner year, reports the First Hawaiian Bank in its latest economic indicators report. And the industry was still headed for growth after a 16 per cent increase in activity in the last year. Private permits authorised, a measure of future construction activity, increased in most countries through March. Oahu’s residential and nonresidential permits rose by 66 per cent and 26 per cent respectively.

Public sector construction is also on the rise, contracts being up 56 per cent in value to SUSIB3 million. Meanwhile, the real estate industry showed signs of slowing down, according to First

Hawaiian, home prices being down three per cent.

In a special on construction in the state, the Bank of Hawaii put a value of SUS2.S billion on new buildings in 1988, bringing the industry back to the peaks achieved in 1969 and 1973-75. When these high levels of construction activity are reached, all the sector’s resources be come heavily committed. The bank says the resultant backlogs should keep activ ity up for another year at least before any major decline occurs.

The Bank of Hawaii does draw atten tion to the housing shortage through the islands. It says research indicates that the

slowdown in issuing of housing permits

began at the same time as population and urban growth management became major policy concerns of the state gov ernment in the early 19705, reflected in law changes covering the use of land.

Government measures included placing a high priority on agriculture and the preservation of farm land. “Interestingly

enough, agriculture received constitu

tional attention during a period when it was dropping in relative importance in the state’s economy and while non

agricultural industries, especially tour

ism, were providing most of the state’s economic growth,” said the Bank of Hawaii report.

The state’s Land Use Commission con tinues to exercise pre-emptive control over the use of land. □