Luxury real estate auction specialists Concierge Auctions just announced the auction of a penthouse condo at beachfront Kolea at Waikoloa Beach Resort for January 2018. The last Concierge auction at Kolea was a single family home in 2011, and my later analysis concluded that the auction process “works” in that it determines a market-clearing price to sell a real estate asset on a given day.
However, in 2011, the penthouse condo that was to be auctioned did not sell as a bank-owned foreclosure listing released at the same time stole its thunder; the beachfront home sold for a short sale price. The 2018 auction of Kolea penthouse 7F might still bring someone a relative bargain, but is unlikely to be the kind of deal buyers were able to achieve 7 years ago in a different market.
Oceanfront community, Koleaʻs Beach Club has a private path to the beach at Anaehoʻomalu Bay
Kolea Condo – 2017 Real Estate Market Review
Letʻs start by updating our regular look at the condo sales for Kolea at Waikoloa Beach Resort, overall and in particular for the third-floor penthouse units. Recall the Kolea condominiums are three-story buildings serviced by elevators. The larger units the front row six-plex buildings have keyed elevators for privacy and attached garages. The penthouses enjoy vaulted ceilings and the most expansive ocean views.
Pocket doors between the lanai and great room allow for comfortable indoor-outdoor living in your Kolea penthouse (MLS 611910)
In 2016, there were no Kolea penthouse (third-floor) villas sold. The highest price sale was an outstanding second floor condo sold for $1,985,000. However, one of the 9 Kolea condo sales in 2017 was a third-floor unit, Kolea 1F, sold for only $1,650,000 as its view and privacy are compromised by proximity to traffic on Waikoloa Beach Drive. In other words, second and third floor units have the same floor plan and can sell for similar prices depending on view and furnishings.
Kolea penthouse condo market summary: Sales are up again, from five condos sold in 2015 to 8 sold in 2016 and 9 sold in 2017. But with 21 active listings, supply is still more than double demand. Kolea 7F, the auction property, is competing with 6 active penthouse listings and potentially with three active 2nd floor listings… almost half the active listings!
What is Kolea 7F worth?
Kolea 7F is the ocean view condo for sale by Concierge Auction on January 25, 2018 (MLS 293254)
Letʻs start by looking at the sales history for Kolea 7F. This property has a fabulous ocean view and was priced by the developer at $2, 700,000 when it sold new in 2005. The first owners flipped immediately at the height of the market at $3,100,000. That seller then got out in 2010 for $2,550,000 and the third owner sold in 2014 for only $2,100,000 – yep, a full $1 million below its peak price.
The 2014 sale of Kolea 7F was the most recent “comp” until this yearʻs sale of 1F.
Of the nine 2nd and 3rd floor Kolea condos for sale in potential competition, six are listed under $2 million. It is probably safe to say bidders will not want to pay more than $2 million, with the only question being how low will it go. Or will auction fever bid it up?
Donʻt forget about the auction premium
Aerial view of Building 7 showing three stories, attached garage and distinctive architectural detail.
Concierge Auctions staff are pros at explaining the process, as Iʻve done in multiple blog posts as well. You will pay a buyerʻs premium, but it costs you nothing additional to be represented by a buyerʻs agent. So if youʻd like my views on the relative values of units and my input into auction tactics, Iʻm working over the holidays!
A hui hou,
Beth Thoma Robinson R(B)