Centex also is in a planning stage for an oceanfront project near one of Ko Olina's man-made lagoons, though Bruce Sloan, Hawai'i division president for Centex, said it would be premature to release details about that plan.

"We still have a lot of interest in this community," Sloan said about Ko Olina. "It's a great resort to be in."

The additional homes at the two resorts are expected to attract a mix of Mainland and kama'aina buyers who likely will add to traffic congestion, a sore point with many residents.

Ko Olina over the past few years has added several hundred new homes, a time-share complex, and plans to break ground this year on an aquarium and luxury hotel/time-share complex with 1,000 rooms. Many more homes are planned for neighboring Kapolei. To the extent that these projects help create permanent jobs in West O'ahu, they can ease the traffic woes as more people find work close to home. But when the new residents have to commute to downtown or Waikiki, they can only add to the traffic bottlenecks.

On the Big Island, traffic also has been a concern on the coastal highway connecting Kohala resorts with Kailua, Kona, enough that Hawai'i Mayor Harry Kim vetoed a proposed new hotel and condo resort late last year. Still, home construction is moving forward at existing resorts already entitled for residential expansion.

The two new projects represent a significant local expansion for Centex, which two years ago broke ground in the Hawai'i market with 17 home lots and 126 condos at its Kolea subdivision in Waikoloa and 324 single-family homes and townhomes at Ko Olina Kai at the West O'ahu resort.

The giant Texas homebuilder, a $10 billion subsidiary of publicly traded Centex Corp., has become a major player in Hawai'i's luxury resort home market as home prices soar on seemingly insatiable demand.

Herb Conley, co-managing director of Coldwell Banker Pacific Properties, said demand for such property is primarily from retirees and baby boomers nearing retirement who are buying vacation residences or retirement property at resorts.

"Around the U.S. resort areas, this is just a booming market," Conley said. "If they are going to retire in 5 or 10 years, they're saying, 'It's Hawai'i. Let's not wait.' They have the financial ability to do that now."

Local housing market researcher Ricky Cassiday last year estimated that sales of condos, single-family homes and undeveloped lots within Hawai'i resorts would top $2 billion in 2004.

Sloan said Centex, which builds a wide range of residential products on the Mainland, will maintain its focus in Hawai'i on residences at resort communities.

At Ko Olina, Centex bought 11 acres from companies affiliated with resort master developer Ko Olina Cos. and The Harry & Jeanette Weinberg Foundation for $12.4 million late last year, according to property records.

Recently Centex began construction work on the site for Ko Olina Hillside Villas, 174 two-story townhomes spread over 24 buildings just mauka of the resort's original residential subdivision, Ko Olina Fairways.

The first phase of 74 Hillside Villas units with two and three bedrooms are priced roughly from the mid- to high-$400,000s to more than $600,000. Sales reservations are being accepted, though sales contracts won't be made until May 24.

Sloan said he expects more kama'aina buyers for the Hillside Villas than the 40 percent to 50 percent at Ko Olina Kai, where prices average around $800,000 and sales recently commenced for the third of four expected phases.

"It's just a good opportunity for someone to have a residence and participate in that lifestyle at the resort," he said.

At Waikoloa, Centex formed a joint-venture company with investment firm Lehman Bros. to develop Hali'i Kai, a two- and three-story condominium project with 192 units spread over 24 buildings on 29 acres between the ocean and Waikoloa's Beach Golf Course.

Lehman is contributing the land to the joint venture with Centex.

"The opportunity came to us and it was a good fit for us to continue to build the resort," Sloan said.

Sloan said it was too early to determine prices for Hali'i Kai's two- and three-bedroom units, but said they would be within the range of residential sales at Waikoloa between $600,000 and $3 million. Sales are expected to start sometime between July and September.

Centex's Kolea subdivision at Waikoloa, where initial unit sale prices averaged $1.5 million, is expected to sell out by the end of the year.