The developer of a residential condominium tower under construction in Kaka'ako has reduced prices on all units for sale, by 20 percent on average, in an effort to shore up sales in a sliding market.

KC Rainbow Development, which is building the 46-story Moana Vista slated for completion in June 2010, on Sunday began marketing about 60 repriced units in the 492-unit project at 1009 Kapi'olani Blvd.

The reduction includes a mountain-view unit on the 18th floor repriced by 16 percent from $468,000 to $392,000, and an ocean-view unit on the 30th floor repriced by 25 percent from $762,000 to $574,500.

The promotion drew about 50 people into the project sales office Sunday, which, considering foul weather and the holiday season, was viewed as a good response by project operations director Allen Leong.

"We've lowered our prices to a point where it struck a nerve," he said. "I think we've found the right price."

Of the 50 people who showed up that day, 11 made reservations to purchase a unit, boosting tentative sales to about 130.

New-home builders in Hawai'i have been making painful adjustments to the softening real estate market, in which single-family home and condo sales have been slowing for three years. The median price of previously owned condos has been flat this year and is forecast to fall a little over the next two years.

For more than a year, several developers have been offering incentives to buyers, including reduced interest rates, upgraded amenities and maintenance fee holidays. Typically, price reductions are a last resort.

Other condo projects that reduced prices this year include the 32-unit Vanguard Lofts being built at 720 Kapi'olani Blvd., where prices were reduced 8 percent, and the remaining roughly 40 units in the completed 227-unit tower 909 Kapi'olani, reduced 12 percent to 40 percent.

The weakening market also has led KC Rainbow to slow its pace of construction, delaying completion of Moana Vista from early 2010 to June 2010.

Moana Vista's price reduction marks a dramatic turn for the project, which two years ago attracted 466 prospective buyers who entered a lottery to buy 192 units for owner-occupants. Investors reserved nearly the balance of 366 for-sale units, excluding 126 units for rent under an affordable-housing agreement.

But since then, all but about 140 of the nonbinding reservations had been canceled. On Dec. 1, Leong said, the developer contacted those remaining reservation holders to offer the reduced prices, which resulted in 115 buyers sticking with the project.

Leong hopes to continue to attract buyers willing to reserve units with a 10 percent deposit as remaining units are released in phases at the new prices.

The developer is targeting late January to convert reservations to binding contracts, after which buyers would lose their 10 percent deposit if they cancel.

"The market has continued to slow," Leong said. "Every week there is bad economic news. People are concerned. There are still people with money to commit. I just don't know how many people are out there like that."