On the Kohala Coast of the Big Island (Mauna Kea, Mauna Lani and Waikoloa Beach resorts) , we’ve had an unusual winter “high season” for real estate sales. The season was high but the prices, for the most part, were bargain basement.
No, the foreclosure wave has not yet hit our Big Island beaches; I’m referring to the fact that three-quarters of sold properties were developer close-outs. Prices on brand new condominiums and homes were slashed on the order of 35-40% below what buyers paid a year or two ago. That was enough to kick sales at projects like Mauna Kea’s Wai’ula’ula or the Waikoloa Beach Villas into high gear.
Now the trend has moved beyond so-called “standing inventory” to raw land. The luscious home sites at the southernmost end of the Mauna Lani Resort, a community called Ke Kailani, were reduced this week up to 62%!
The biggest surprise is the new pricing on the smaller lots, farthest from the ocean, with mountain views. For $345,000 you can own an 18,730 sq ft building site with access to the private Ke Kailani amenities as well as those of Mauna Lani. To put that in perspective, two years ago an almost-adjacent lot sold for $875,000 and is re-listed at $699,000. Or consider that a 1/3-acre building site up the hill in Waikoloa Village is on the market for $325,000!
If your dream is a home close to the ocean, a one-acre lot is priced at $1,200,000; the adjacent lot sold two years ago for $2,500,000. Remember that at the resorts you have higher monthly association dues, even on a lot, and CC&Rs require that you build a significant home of quality.
I’ll give you the link to the Ke Kailani website so you can look over the site plan and amenities, but only after I give you a word of advice. In the spirit of full disclosure, I used to work for the developer of the property to the south of Ke Kailani. As a former developer agent, I recommend prospective buyers should not walk into a developer’s sales office or request information from them without the assistance of a buyer’s agent!
Developer agents are no different than any other listing agent. The represent the Seller, and have fiduciary and confidentiality obligations to their client. However genuinely nice and helpful they are to you as a prospective buyer, technically you are an unrepresented customer. Even if they could promise to also represent you as a buyer, there are inherent conflicts in dual agency, which is why we have a policy against it at Hawaii Life.
So find a qualified local Realtor who knows the territory, and let them help you objectively decide whether this is the right property for you, and make sure you get the best price and terms.
Here’s the website for Ke Kailani. When you’re done salivating, give us a call!