Real Estate for sale at the Mauna Kea Resort at Close-out Prices
A month has passed since the developer released the last half dozen condos at Kumulani at the Mauna Kea Resort. Even though the starting price is an unbelievable $550,000 (half a million to be at Mauna Kea???), none of these units are yet in escrow.
Kumulani is one of the two condo projects mauka (mountain-side) of the highway within the Mauna Kea Beach Resort (Wai'ula'ula is the other). Last year (2009) Wai'ula'ula made waves by conducting an aggressive close-out sale, and this year buyers have been tripping over each other in their bids for short sale and foreclosures there. In contrast, the last sale at Kumulani was recorded in September 2008, a 1541 sq ft 2-bedroom, turnkey furnished, which happened to have been sold by my business partner Pam for $1,025,000. At the time it looked like a good deal, as the same floorplan in the same building sold for $100,000 more earlier that year.
In retrospect, the new Kumulani developer pricing is down to original 2001 levels or below! Depending on the market, we hear appraisers estimating that prices on the Big Island are at 2003-2005 levels, so this represents extraordinary value. The question is: why is there not a rush to buy at $550 - 795,000?
These look to be good value, with their ocean and mountain views and peaceful golf course location. While the finishes and amenities are not quite as upscale as at Wai'ula'ula, buyers can enjoy the entire range of Mauna Kea amenities (spa, tennis, golf) by various membership plans for different needs. The upper end of the range is still below current Wai'ula'ula distress sale prices.
Perhaps it is the high monthly dues (almost $1300/month)? Perhaps the fact that they are 2-bedroom units and at those price points buyers prefer 3 bedrooms?
There is one unit on the resale market that has been thoughtfully remodeled into a 3-bedroom, and it has one of the nicest locations besides. Maybe the real "best buy" at Kumulani is this turnkey furnished condo which had a price reduction from $995,000 to $860,000!!
A hui hou,