D.R. Horton’s new construction project in Kailua is about halfway done. Building 1, which was lotteried in December 2013, has four units left. All are 3-bedroom condos, which begin at $860,447. Building 2 has one 3-bedroom unit left. Those are ready for occupancy. The Horton showroom occupies space in Building 2, along with two model units, which will also become available later, probably as the six building project is completed.
Ka Malanai Street View
Building 3 is selling now, but construction is not complete. There are both 2-bedroom and 3-bedroom units available in Building 3, and those range in price from just under $800,000 to over $925,000. Finish selections for Buildings 1-3 have been made, so if you want to choose your own, your next opportunity will be in Building 4.
Building 4, which will have the full range of 1, 2, and 3-bedroom units, will open sales soon. Unlike the first lottery back in December, there is no longer an owner occupancy requirement for purchasing a unit in Ka Malanai. Last winter owners had to sign an affidavit attesting they planned to live in the unit for at least a year.
Wow! Sticker Shock
The word on the street is these units are too expensive. Looking at market data for Kailua, I don’t think that’s the case.
- First, they’re new, and if you know Kailua, you know truly new construction is very hard to find, especially in that price range.
- Second, the location is excellent! Walking to all of Kailua town’s amenities and also to beaches is a huge benefit.
- Third, other condos in Kailua already sell in this price range. Bluestone in Lanikai, a much older development with higher maintenance fees, sells in the $900K range regularly. Kukilakila, a townhouse style development on Enchanted Lake, has also seen some recent listings hovering around $900K. Each of those communities has different benefits, but I do think the D.R. Horton community is priced appropriately.
Also, this month Horton unveiled both buyer and Realtor incentives. Now that they’re a few buildings into this project and the hype has died down, it looks like they’re adjusting their expectations, so it’s looking like the time to buy here!
That said, if Ka Malanai is out of your budget and you still want to live in that part of Kailua, there are several other nearby condo options in the $400-650K range, which should only increase in value as more Ka Malanai units are sold.
Bells & Whistles
I took a tour of the two models at Ka Malanai recently. Here are a couple of shots of the finish selections, the views, and the interiors.
Dining Room to Kitchen
Living Room to Lanai
Also included is a shot of the distance between the wall of the new Target and the lanai of one of the rear units. Many have commented about being so close to the store, but seeing a solid wall seems to be much more appealing and quieter than overlooking a superstore parking lot.
Target Wall & Condo Guest Parking
Visiting the Sales Center?
In any transaction, it’s a good idea to have Buyer Representation. You can be represented by a Buyer’s Agent if you’re buying at Ka Malanai. There is no financial incentive for not doing so, and often a Realtor has information that may help you negotiate a better deal.
If you’re planning to visit the Sales Center, take your agent with you, or let the Horton representative know who your agent is on your first visit! The Sales Center employees represent the builder’s interests. You should have someone on your side who thoroughly understands the contract process.