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Big Island Market Report: Mauna Lani Point

Mauna Lani Point and Mauna Lani Terrace have the distinction of being the only condominiums at Mauna Lani Resort that are really “walk to the beach,” with many of them having extraordinary, intimate ocean views across the golf course. That translates into a certain level of demand despite their age and lack of garages, and has somewhat sheltered pricing from the distress sale-driven lows of the recent market cycle.

Here’s a quick market report on Mauna Lani Point. Similar information for Mauna Lani Terrace to follow in another post.

Lowest priced ocean view Mauna Lani Point F205

View from Mauna Lani Point F205 (MLS# 261362) lowest priced ocean view offered for $1,590,000

Price Stability at Mauna Lani Point for Ocean View Condos

Pam and I were recently working with a couple who had sold their Mauna Lani Point condo a few years back. They were staying in a Kolea penthouse villa and deciding between the two complexes. They ended up making offers at both and are a good illustration of the thinking process of many buyers in this segment of the market. They had a detailed spreadsheet on which they calculated what economists would call their utility curve: the price at which they would be equally happy between any of a half dozen condos, given the subtleties of ocean view, furnishings, and condition.

Typical of the Mauna Lani Point buyer, they were not necessarily looking for the least expensive alternative. That is the easiest explanation for the relative stability in pricing throughout the cycle. Their price matrix depended a view premium for proximity to the ocean, and whether or not they would need to invest in renovation and furnishings. As cash buyers, they were unconcerned with how past sales would affect an appraisal.

Mauna Lani Point – Ocean View, Renovation Drive Pricing

It is easiest to see the stability in pricing by looking at sales for the ocean view two bedroom floorplan (there are slight variations in square footage but all are around 1,500-1,600 sq. ft. with 2.5 baths and a carport). Starting with 2007, the year before the mortgage and real estate markets fell apart in the fall of 2008:

  • 2007: 3 sales, $1,950,000 – $2,500,000
  • 2008: 3 sales, $ 1,820,000 – $1,930,000
  • 2009: no sales
  • 2010: 1 sale, $1,900,000
  • 2011: 1 sale, $2,100,000
  • 2012: no ocean view sales
  • 2013 to date: one sale at $1,425,000 and one in escrow asking $2,295,000

There are currently four active comparable Mauna Lani Point 2-bedroom ocean view listings priced from $1,590,000 (MLS# 261362) to $ 2,700,000 (MLS# 252314). One of them, A205 (MLS# 250195), sold for $1,950,000 in 2007 and is asking $1,925,000 now.

In other words, there is still a bit of a cycle and we are still closer to the bottom than the top.

Looking for a “Deal” at Mauna Lani Point

If the location of Mauna Lani Point is your dream come true, but you are not what I described as the typical buyer for whom the “deal” is only relative, there is another alternative. There is a steep discount for Mauna Lani Point condos that have a golf course rather than ocean view. And for the buyer at an under $1 million price point, a one-bedroom condo is the answer.

Examples of this strategy include J204, the 2-bedroom with golf and mountain views sold this year for only $690,000. That’s one heck of a view premium! There are ocean view one-bedrooms currently listed from $895,000 to $1,095,000 in the A building. 

Who buys one bedrooms? I’ve shown them to couples who are happy to have their adult kids stay at the hotel or rent their own condo; and to folks who already own a home elsewhere on the Big Island and just want the equivalent of a hotel room when they want a taste of the sunny resort lifestyle.

Foreclosure at Mauna Lani Point

There is one opportunity coming up for the right buyer. Mauna Lani Point H104/204 is a 3 bedroom, golf view combined unit that went to foreclosure auction after years on the market without a sale. The confirmation hearing was two weeks ago, and the buyer was the lender for its credit bid of only $951,230. Note that this was last listed at $1,445,000 and would not have been a short sale at that price!

View from upcoming foreclosure 3 bedroom Mauna Lani Point

Lovely view from Mauna Lani Point 3 bedroom foreclosure…just not ocean view!

If this sounds like an interesting opportunity to you, contact me for more information about how to get in on the action when the REO gets listed.

A hui hou,

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

Note: You can now subscribe to my blog at pb.hawaiilife.com 

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Katie Minkus, R(B)

May 3, 2013

Beth, I love how you bring so much of your economic expertise to the table with your clients! “Utility curve” – who knew? Oh, that’s right, apparently YOU did! Now that’s some first class representation!

Katie Minkus, R(B)

May 3, 2013

Beth, I love how you bring so much of your economic expertise to the table with your clients! “Utility curve” – who knew? Oh, that’s right, apparently YOU did! Now that’s some first class representation!

Beth Thoma Robinson R(B)

May 6, 2013

Katie, luckily you don’t have to be an economist to understand the bottom line. I just like to add a little value in my blog posts.

Beth Thoma Robinson R(B)

May 6, 2013

Katie, luckily you don’t have to be an economist to understand the bottom line. I just like to add a little value in my blog posts.

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