By Bryan Manabat
Guam's real estate market is experiencing an unusual split in 2026, with commercial property sales, reaching historic highs even as overall transaction activity drops to one of the lowest levels in recent years, according to a market report released by Siska Hutapea, president of Cornerstone Valuation Guam Inc.
Hutapea described the trend as a "paradox" that reflects two very different realities within Guam's economy.
Commercial building sales have surged well above historical norms. The island recorded 30 commercial building transactions in 2025 and another 16 sales through the first part of 2026. By comparison, the annual median number of commercial building sales is just 13.
At the same time, overall real estate activity has slowed considerably. Total real estate sales stood at 947 transactions, significantly below the historical annual median of 1,239 sales.
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According to Hutapea, the contrasting figures mirror the island's economic conditions. She said commercial property buyers represent a relatively small group of investors and businesses connected to construction activity and the military buildup, while lower overall sales reflect ongoing weakness in Guam's traditional economic driver: tourism.
"The paradoxical data succinctly describes the state of Guam's economy," Hutapea said in the report.
The strength of commercial investment was reflected in several high-profile transactions completed this year.
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Among the largest deals was the sale of the 445-room Guam Reef Hotel for $64 million. Other notable transactions included the sale of Chamorro Gardens Apartments, a 105-unit complex, for $11.8 million; the 62-room Tumon Bay Capital Hotel for $7.2 million; Orlean Pacific Plaza for $6.5 million; and a warehouse in Harmon Industrial Park for $3.8 million.
Additional major sales included a multifamily property in Tumon for $3.5 million, the Guam Sanko Bus Facility for $3.2 million and several large land transactions in Yigo and along Route 15.
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Despite the commercial sector's strength, residential buyers continue to face mounting affordability challenges.
The median sales price for a single-family dwelling reached a record $460,000 this year, while condominium prices climbed to a record median of $330,000.
Hutapea attributed those increases to limited housing inventory, rising construction costs and higher interest rates.
The supply shortage remains particularly acute. Only 179 permits for new single-family homes were issued in 2025, well below the historical average of 300 units annually before the military buildup accelerated demand.
Hutapea noted that housing affordability is a growing challenge across the United States, not just on Guam. She pointed to initiatives in San Diego, Austin and Atlanta as examples of how local governments have streamlined permitting, leveraged public-private partnerships and coordinated agencies to speed affordable housing development.
In San Diego, city leaders adopted an expedited permitting process for affordable housing projects. Austin secured financing support through Airbnb's Housing Accelerator program to advance more than 500 mixed-income and affordable housing units. Atlanta established a cross-agency Affordable Housing Strike Force tasked with reducing bureaucratic obstacles to housing development.
For Guam, Hutapea suggested that similar approaches could help address housing shortages and improve affordability as the island continues to balance military-driven growth with broader economic challenges.
The latest figures underscore a market increasingly shaped by a narrow group of commercial investors and defense-related activity, even as many residents face rising housing costs and a slowing overall economy.
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