Wai’ula’ula at Mauna Kea Resort: New Construction Update

The big story in Mauna Kea Resort real estate this year – just as at the Mauna Lani Resort – would have to be the success of pre-construction developer sales for the new phase of an established resort community. Three out of the five properties in escrow at Wai’ula’ula at Mauna Kea are homes under construction.

Part of the appeal: Wai’ula’ula amenity center with pool, gym, and both indoor and outdoor gathering areas

Comparison Shopping: New Paired Wai’ula’ula Homes Versus Resale Listings

Recall that the Wai’ula’ula community, located at the Uplands at Mauna Kea and accessed through the Hapuna Beach Hotel entrance rather than the Mauna Kea Resort entrance, was designed to encompass three home types within the same project. The Ridge condos are four-plex buildings located at the top of the community. Below (nearer the highway and the ocean) are a mix of duplex Villas and detached, single family home styled Estates. All the new construction will be either paired or freestanding homes.

The ocean and the highway are to the left in the photo; the lettered buildings are the Ridge condos

One might ask what the differences are between the existing Wai’ula’ula Villa and Estate homes and the new construction. The official answer is that while the originals were built by Maryl Construction and the new ones are built by D.R. Horton, they are using the same floorplans with only minor tweaks to address design flaws pointed out by the first generation owners.

Now let’s look at pricing.

Three Villa units sold last year (2013), at prices ranging from $1,275,000 for a home with no view of the ocean, to $1,700,000 for one with beautiful views. Ironically of the three sellers, only the lowest priced home made them money!

The previous history of developer sales prices had two distinct phases: after the 2008 real estate market collapse, all three types of Wai’ula’ula homes sold at price levels a fraction of the market high pricing. So while the owner who sold for $1,275,000 paid only $975,000 in 2009…the owner who sold for $1.7 million had paid over $2.1 million (not including furnishings) in 2006.

That $1.7 million sale became the benchmark for the new release. The developer came out of the box with an asking price of $1,912,500…and has Villa 322 in escrow.

Poolside view from Wai’ula’ula paired home for sale fully furnished (MLS# 274094)

So should you buy a resale listing, or opt for new construction? While one buyer went into contract with the developer, another closed this week on a fully furnished resale for $1,900,000.

There are currently two active listings of this floorplan, one resale and one developer. They appear at first glance to be priced neck and neck, with the developer unit at $1,767,500 (MLS# 271483) and the resale Wai’ula’ula #346 new to the market at $1,760,000 (MLS# 274094). But on closer look, the developer unit is priced without a pool. Adding the pool magically takes it to the $1,912,500 asking price of the one in escrow.

The turnkey furnished resale sure looks like the better buy to me!

Comparison Shopping: New Estate (Detached) Wai’ula’ula Homes Versus Resale Listings

I happen to really like the Villas (paired home) floorplan and think with the plunge pool it makes sense for many buyers looking for a low-maintenance resort property that lives like a single family home. The buyer who doesn’t like the idea of a neighbor with a shared wall – or who needs an extra bedroom – should step up to the Estates.

Developer close out on these homes dipped as low as $1,895,000. None have sold on the resale market since then…however, two of the Wai’ula’ula estate homes under construction are in contract at their asking price of $2,900,980.

Former model home, offered furnished with all the upgrades for $2,995,000 (MLS# 267736)

As with the duplex Villas, a buyer for Wai’ula’ula Estates currently has a choice between a furnished resale for $2,995,000 (MLS# 267736) and a developer home to be built at $2,380,980 (MLS# 271484). Ahh…but the less expensive listing is quoted without the price of the pool or the 4th bedroom ohana, which would bring it also to the price of the ones in escrow.

If you only need three bedrooms but want a detached home, this gives you an option. Otherwise, go for the resale, as the seller has a lot more into it than he is asking, having paid $3.4 million. And he’d be willing to leaseback for $7,000/month! Contact me for more details.

In case you were wondering, the other two Wai’ula’ula homes in escrow are Ridge condos. Waiting for them to close to post an update on price recovery to over $1 million on these!

A hui hou,

Beth Thoma Robinson, R(B)
Direct: 808.443.4588
Email: beth@hawaiilife.com