“The most recent quarter reflected $63.7 million in activity, down 28 percent from the prior quarter, but up 76 percent compared to the global financial crisis-impacted first quarter of 2009,” Captain, president of the Capital Real Estate Group of Companies, stated in the market report published in the June issue of Casa Guam. “The stalled recovery is partially attributable to the on-going confusion and mixed signals from Japan regarding the military buildup.”
The real estate market has been invigorated by the impending population growth and the prospect of economic boom resulting from the relocation of 9,000 Marines from Okinawa to Guam.
However, market watchers had apparently adopted the wait-and-see mode during the first three months of the year when then-Japan Prime Minister Yukio Hatoyama demonstrated a tentative stance on the 2006 agreement between Tokyo and Washington that involves the relocation of U.S. Marines from Okinawa.
Hatoyama has since resigned after eventually sealing Tokyo’s commitment to preserve the 2006 pact with Washington.
Japan’s new prime minister, Naoto Kan, has reaffirmed his country’s alliance with Washington and has promised to work hard on an agreement to relocate a contentious U.S. Marine base.
In a brief phone interview with Variety, Captain said the market slowdown continued in the second quarter but the combination of recent changes will eventually make a significant impact on the market.
The U.S. Congress recently approved a $577 million appropriation for military construction on Guam, primarily for the planned expansion of Andersen Air Force Base for fiscal year 2011.
“The latest changes combined with the final environmental impact statement and the commencement of massive construction projects that will start this year will definitely have an impact on the market,” Captain said. “I think by this time next year, market conditions will likely be significantly different than what it is today.”
