Japanese buyers pour hundreds of millions into Hawaii real estate

Japanese investors are returning to the Hawaii market after years of hesitation caused by currency weakness.

The state saw several major transactions over the last year, with total investment reaching the hundreds of millions of dollars. These purchases mark a shift from previous periods where a weak yen discouraged many buyers from entering the local market.

The largest commercial real estate transaction of last year involved the land beneath The Royal Hawaiian hotel. Daisho Company paid $510 million for the 10 acres, while Kyo-ya Hotels and Resorts retained ownership of the hotel structure itself. This deal represented the biggest commercial property sale in the state for that year.

Activity has continued into 2026 with notable acquisitions. Shoei Global purchased the land under the Bank of Hawaii Waikiki Center for $67 million, making it the largest deal so far this year. Shoei had bought the building in 2013, giving the company full fee simple ownership of the entire property. In the residential sector, an unnamed Japanese investor paid more than $10 million for a fourth Waikiki parcel last spring, bringing that buyer close to owning an entire block.

Smaller purchases have also occurred across the state. Biosystem Co., a Japanese firm, bought a Makiki apartment building from Honolulu developer MacNaughton for $9 million. ESC Pacific, a Japanese engineering company, acquired the Podmore building in downtown Honolulu for just under $3 million.

Some market experts caution that the influx of capital may remain limited. Sal Miwa, president of Miwa and Associates, notes that while Japanese investors seek to place money outside their home country, they often gravitate toward other U.S. markets. Miwa points out that these buyers frequently target manufacturing businesses, a sector where Hawaii offers few opportunities compared to other locations.