Well, I'm not sure if that $3 million price reduction got your attention?
3239 Noela Drive
3239 Noela Drive in Diamond Head just reduced by $3,000,000 earlier this month. This is the 2nd $3 million price reduction (the last of which took place in June) since it's been on the market. The original asking price was $25 million and they hit the market in November of 2023. Now you might ask yourself, is this a good buy at $19 million? Or, is it not a good buy? I'm going to break it down the pros and cons of the current price and what you're getting for this trophy property at Diamond Head.
Overpriced?
First off, I'm going to talk about why this is not a good buy at the current price. This home has over 16,000 sq. ft. of living area. Not many people want to maintain a property that big, even if they can afford it.
Over 16,000 sq. ft. of Living Area on an Acre
Next, there haven't been too many non-oceanfront homes on Oahu that have sold over $10 million. In the past 10 years, there's only been 7 sales. The highest of those was for a new construction home in Lanikai for $14 million. The highest most recent sale north of $10 million was at 3222 Diamond Head Road (right around the corner from here) that sold for $12 million earlier this year.
Oahu Non-Oceanfront Home Sales Over $10 Mil
Lanikai Home Sale for $14 mil
3222 Diamond Head Road Sale for $12 mil
Now, those are the reasons why I don't think this is a good buy. On the flipside, some of the pros may outweigh the cons.
Or A Good Buy?
Now, let me break down the reasons why this is a good buy. The first reason is that sale on Diamond Head Road went for $2,549/sq. ft. on a lot that was less than half the size. The current asking price of this Noela home puts it at only $1,133/sq. ft.
3222 Diamond Head Road vs. 3239 Noela Drive
The second reason is if someone is truly looking for a trophy property on Oahu, this checks a lot of the boxes. The highest sale we had last year on Oahu was $27.5 million. However, that was for a Penthouse condo at Park Lane.
I think if you were to take a poll if someone were to own a 16,000 sq. ft. home on an acre on the slopes of Diamond Head or a condo in Ala Moana? I think most would opt for the Diamond Head home.
Which Would You Rather Own?
The next reason is this is a bargain compared to other luxury market across the U.S., such as Aspen, CO, Malibu, CA, Miami or Palm Beach in Florida or Manhattan in New York. This is really a great value, especially what you're getting for a price/sq. ft. like we talked about earlier.
History on 3239 Noela
Now, for a little bit of history on 3239 Noela. Going back to 1987, local developer Jack Myers bought the McCorriston Estate for $1,350,000 and built a new home that was over 10,000 sq. ft. and featured a tennis court. He sold it in the year 2000 for $9 million, which at the time was a high price tag on Oahu, back in the year 2000.
Back When the Home had a Tennis Court
The next owner carried it for 19 years before selling at a loss in 2009 for $8,750,000. I though the current owner got a great buy back then, just after the financial crisis. However, they went on to demolishing the tennis court and adding an additional home (and pool) in its place. This brought the current living area up to 16,768 sq. ft.
New 2nd Home and Pool
Summary
Additional Photos of 3239 Noela Drive
Now, to recap this, there aren't as many buyers floating around out there that have the means to pay close to $20 million for a home here on Oahu. The truth is that these homes can take awhile to sell. Whether that buyer shows up next year or next month, only time will tell. If you're looking for some help navigating the luxury home market here on Oahu, or thinking about buying or selling, feel free to reach out and give me a call at 808-371-3509. Mahalo!