Developer Price Reductions – Kauna'oa at Mauna Kea Resort

Got an apologetic email on Tuesday from the developer of Kauna’oa at Mauna Kea Resort that said, “Many of you have been waiting for this release…thank you for your patience.” Following up on the “loss leader” price reduction I wrote about six weeks ago, Kauna’oa has finally reduced prices on all remaining inventory in the Hali’a Hale paired town homes as well as the one developer lot for sale.

Speaking of vacant lots at Kauna’oa, 2011 has been a consistent year for the developer, with three lots sold (prices ranging from $895,000 to $2,400,000) and Lot 4 under contract. That leaves only one developer lot on the market, plus a resale listing with a $3,000,000 price tag.

The resale lot for sale has a choice location at the northwest corner of the Kauna’oa community, with a golf course on two sides and only one neighboring lot. A total of five lots sold in 2010, so it is quite possible both these lots will find buyers this year.

Hali’a Hale 3B at Kauna’oa (MLS# 245495) is priced at $3.3 million with custom features and these views

Up until now, the developer has seemed quite content with selling one Hali’a Hale town home a year. However, with one sold already in 2011 (1A listed for $3,300,000 and sold for $2,600,000), the timing of this price reduction indicates that they are finally ready to move the remaining six developer-built homes.

They accepted $700,000 below asking price on Kauna’oa 1A, and this week’s price reductions slash $300K-$600,000 off list prices. (Although the earlier price reduction on 10A (MLS# 221622) to $1,900,000 was reported in the announcement as if it were fresh news).

The Kauna’oa buyer demands a high level of amenities and proximity to beach and golf, and is willing to pay for them. Because the buyer of the town home pays three levels of dues (the master association at Kauna’oa which includes the owners of lots and the single family residence built on those lots, the association of only the Hali’a Hale owners, and their chosen level of the Mauna Kea Amenity Program), they might well also be considering a lot or home at Hualalai Resort. Both resorts encourage a social atmosphere where owners get to know one another in a private club-like setting.

For a buyer who wants a property similarly situated with respect to ocean views, beach access, and resort amenities, but is fine with fewer amenities and a lower monthly holding cost, they might consider one of the few 3-bedroom condos at Mauna Lani Terrace, which has been on the market for about 6 months at $3,295,000.

Although an older vintage, Mauna Lani Terrace A204 (MLS# 240700) has been completely renovated, is also a townhouse style with elevated ocean views. Terrace A204 has 3 bedrooms and 2,462 sq. ft. of interior space compared with 4 bedrooms and 3,375-3,843 sq. ft. of living space at Kauna’oa, but that might be just enough for most buyers.