The recent Big Island real estate price reductions I am writing about really do not have anything to do with “Black Friday” retail sales. But between Kohala Coast resort developers trying to put that last push on year-end sales and individual property owners thinking to get ahead of competing listings, there have been a few noteworthy price adjustments in the past couple of weeks.
Mauna Lani Resort Price Reductions
Mauna Lani Point Estates
Letʻs talk first about a newly constructed (one-year-old) home in Mauna Lani Point Estates. A year ago it went on the market at $5,999,000. Letʻs say “testing the waters” at that price point. Back on the market in September of this year at $4,880,000, last weekʻs price reduction of over $500K takes it to an asking price of $4,350,000 (MLS 632078).
Is this a true “Black Friday deal?” There is only one other home for sale in the Estates, adjacent to the condo project Mauna Lani Point, close to the oceanfront Mauna Lani Beach Club amenities. This is an older home in need of updates but designed by Lucky Bennett and priced at only $2,900,000 (MLS 632754). A newer Mauna Lani Point Estates home, closer to the golf course and ocean, closed last week for $5,100,000. So maybe we are getting in the right range of value. Easy to show if you want to see it.
If you are looking for a single family home that is a legal, established short term vacation rental “cash cow,” you will need to focus your search in resort-zoned areas, thanks to the new County law. A resort home listing in Champion Ridge with strong rental history just had a major price reduction to $3,379,000, after starting six months ago at $3,999,000 (MLS 624594).
Remember that Champion Ridge is the entry-level exclusively single family home community at Mauna Lani, and most of these homes have mountain or golf course views, rather than ocean views. Owners enjoy the peaceful feeling of the community with its garden and streets where families can safely stroll. Two homes have sold in the past 12 months, and two vacant lots are in escrow at Champion Ridge, a sign of the continued value buyers find there.
There are three active listings with the other two priced below this one, but not with a vacation rental track record. Each of them has its own appeal.
Year-End Sale at Ka Milo at Mauna Lani
Developers often offer year-end specials, both in price reductions and other incentives, so letʻs see what Brookfield is offering to move the last five homes available at Ka Milo at Mauna Lani.
All five are the two-story, 4 bedroom paired home Mahina floorplan. Prices have all been cut, now ranging from $1,275,000 to $1,340,000 depending on included upgrades (chosen by the developer staff now that the construction is complete). And if you are a cash buyer who could close by year-end, you will get a $15,000 closing credit. So, for example, on #121 shown in the photo above, you would be saving a total of $40,000 relative to the price you would have paid a few months ago.
North Kohala Homes on Acreage
Two of my listings in North Kohala (Hawi and Niulii) have also taken significant price reductions to be competitive this selling season.
The Stone Crusher Estate in Hawi was a family home, then was used as a vacation rental until the passage of the new law. At this point, it could still be a hosted vacation rental…or a family compound…or corporate retreat. Initially listed at $2.5 million, just reduced to $2 million, for two completely permitted 4-bedroom pod-style homes built in a distinctive architectural style combining elements of rural Japanese and contemporary Hawaiian design.
If you have not seen the video tour of the 26.72-acre horse property with facilities, managers quarters, and several nearly oceanfront building sites for your estate home, please take a look here as horseback is the best way to see this listing! Now reduced $400,000 from its original listing price, at $2,750,000, it is now listed for only $250,000 more than a nearby 22-acre VACANT oceanfront property sold a year ago.
I do take off Thanksgiving Day, Christmas Day, and New Years Day. Every year without fail. But if youʻd like to look at these or other properties over the holidays, please donʻt hesitate to ask.