(well-known real estate developers, Hainan Tourism: East and Hainan Fu Wan a View / The Bo Photography)

Myth came crashing down on in Dubai, when China’s Hainan’s real estate market is in full swing staging another new myth.

With a high-profile promotion of international tourism in Hainan Island, the concept of developers and investors from all over the country flocked Wanli gold, Hainan, Sanya and other East Coast in particular, land and housing prices even more costly.

National Bureau of Statistics data show that house prices in Sanya for 9526 yuan from the June / m, along the way to September rose to 14,751 yuan / square meter.

The Land Reserve in Hainan Province finishing Trading Center Trading Division of Land Reserve data showed this year in Hainan’s overall housing prices up to 10%.

The last century 90′s, Hainan, the shadow of the real estate bubble burst is not scattered, Dubai, the crisis also sounded the alarm, heated real estate is being staged in Hainan whether tragedy or comedy?

corners of the country of investors

By the end of November, with his enthusiastic owner of small coal mines in Shanxi Province at a friend’s referral, the straight Hainan. “My friends have bought several sets in early in Hainan Seaview room, from 1 month to 11 months, these suites have been earning around 60%.” Mr. Sung told the “China Times” reporter, I heard that the “Hainan Island, Plan International Travel “The recent approval of the State Council will be present Hainan’s development and relevant supporting more and more complete appreciation of the room is great.

Mr. Sung is just all over the country to the gold rush of investment in Hainan off the drop in the ocean. “People everywhere are foreigners come to Hainan to purchase, especially the sea view room, very few locals are foreigners pushed up housing prices in Hainan.” A professor at Hainan University, told reporters.

In fact, prices hit Hainan, stir-fried, has only a small part of the investment-off at work.

“Nowadays, Tibet, Yunnan, Guizhou, the country’s investment-off provinces and cities have already appeared in Hainan, especially Jiangsu and Zhejiang, Shanxi, north-east, Chongqing, Chengdu and other places of investment, customer-sheng, after November, Shaanxi, Inner Mongolia and Xinjiang also been a proliferation of investors. “Lianhua initiatives in Hainan, the company official told reporters that people throughout the country pushed up prices in Hainan.

Sanya City Real Estate Board of Party Secretary Li Honghai also analyzed that the current clients come from the Northeast to buy a house in Sanya, Beijing and Shanghai, Jiangsu and Zhejiang, Shanxi, Sichuan and other provinces.

This reporter has learned, most of investors are the choices in Hainan Seaview Room or high-end housing, but apart from the island of Sanya international tourism concepts, current and Wenchang in Hainan and Haikou, Boao, Qionghai other places have also been used by investors as the most with appreciation of the potential real estate section. Because the countries have in the administrative level for a town of Boao, to build the airport; while China’s largest space city Wenchang was opened in September to build.

Moreover, the investment customers were also not worried about their abandonment of sea view rooms will appear.

According to his enthusiastic introduction, the majority of investors believe that the current real estate in Hainan is still room for growth, investors through investment there is still much room for gains access to the appreciation.

“A lot of real estate was also commissioned to provide professional management services to owners every year to live inside their own houses in Hainan last two weeks, the rest of the time, they have entrusted the management company will be used for rental housing, access to rental income.” Says Mr Song.

500 developers to grab land the East Coast

And investment, while passengers who show up in Hainan Province, as well as across the country the size of the developers made their arrival, and Hainan, Sanya, Hainan, especially the east coast of the land Feng Qiang. Agile, R & F Properties, CITIC and real estate developers all over the country have come to the enclosure of Hainan, Hainan land prices skyrocketed.

Recently, the China Real Estate Assessment Center, specifically the real estate market in Hainan issued the “2009 real estate development enterprises in Hainan Top 10″ report, the report shows: Agile, Hainan, Sanya Luhuitou, Sanya Yalong Bay, Hainan Luneng 10 real estate companies, etc. enterprises are a strong leader in 2009, Hainan property.

Land Reserve in Hainan Province finishing Trading Center Trading subjects related to land bank sources said that about 100 came to our house off the island’s developers to invest. In the 595 kilometers from Haikou to Sanya, the golden coastline, invested billions of billions of tourism real estate projects abound, R & F, Vanke, Luneng, Poly Real Estate, Resources, and other famous figures of real estate developers, flash them.

“Hainan land prices have been rising very fast, ever-changing prices.” Lianhua initiatives in Hainan, the company official told reporters that two or three years ago to 300,000 -40 yuan / mu of land has now risen to more than 100 million / acre .

The sources also told the reporter, and now there are at least 500 more than the size of Hainan developers in the operation, the latest investment of about 20 billion or so. However, with its potential investment has been to take land, or at least multi-billion dollar funds will operate in the real estate market in Hainan.

“Now, along the east coast of Hainan Province inward depth of one kilometer block, has been divvy up. Only recently a new circle of land reached 50 square kilometers. 50% of the land developers of the new ring, as well as 50% of the of the last century 90′s period of real estate in Hainan was stir-ring is gone, while tossing in exile in the hands of some local people lying on the ground. “Hainan, a local developer, said.

Government Pushing Hands

A large number of land transfer and Hainan, the biggest beneficiary of high prices, than the local government.

“Hainan’s largest real estate concept of the driving force, but also the local government of Hainan Province.” These local developer told reporters, because there is no other industry can pull in Hainan GDP, while the tourism industry and relatively inexpensive, so the financial accounts of land in Hainan Province GDP, 30 % or so. “This is just the accounting of the sale of land and real estate investment in pure pulling power, if the real estate industry coupled with other radiation-related industries and consumer, the real estate industry to the GDP of Hainan Province pulling power even higher.”

It is precisely the local government in Hainan Province, Hainan, in the strongly praised the concept of real estate, whether it’s international tourism island, Begonia Bay development, the Boao airport or aviation city.

Sanya City Housing Authority for security and property on the external, said Li Honghai, Sanya has a unique tropical sea resources, can be said to be “the Chinese people’s back garden”, to some extent in Sanya purchase is also a status symbol, which are Sanya to attract people’s choice across the country. It can be said now to buy a house in Sanya “very smart.”

He also believes that the current annual turnover of Sanya City in the 1 million / square meters, the supply will need to reach 2 million / square meters, in order to achieve balance between supply and demand. Sanya urban development, real estate development will follow the five-year plan to go to further improve infrastructure and living supporting, for example, the introduction of People’s Liberation Army General Hospital, Hainan Branch to build the Olympic sports center.

Hainan’s real estate concept is stir-fried to the stock market was also reflected extremely hot.

Plate as the main body of Hainan Island, Hainan’s tourism-related stocks in early November, turned out to November 5, Hainan local shares a sudden outbreak of 20-related stocks in the 18 day close out the Yang Xian, plate as a whole rose 4.7%, ranking geographical section of the first two cities. As of November 16 closing, Hainan month cumulative plate has gained 17.33%.

“Inflation expectations, government policies to stimulate domestic demand forces, lack of investment channels and the government pushing an international tourist island of Hainan, the concept of all the current round of real estate in Hainan has been an important reason for stir-fried.” Lianhua initiatives in Hainan, said the company’s responsible person .

old speculators sit on the sidelines

In Hainan, a new round of real estate boom, many passengers are still not forgotten the old floor of the last century 90′s those images.

Hainan in the last century and the early 90s that the real estate market bubble, so a lot of developers are still a lingering fear. The total number of 6.558 million of the island, but actually had more than 20000 real estate company. Short period of three years, 1990-1993, house prices increased by more than 4 times. The final legacy is more than 600 buildings “uncompleted flats”, 18,834 hectares of idle land, and the backlog of 80 billion yuan of funds, only four state-owned commercial banks as much as 30 billion yuan of bad loans.

Premier Zhu Rongji at that time the deadline divestment of the “three-point” cut off the funding chain, after a time, developers have to flee, or the place closed down. When banks started to dispose of non-performing assets, it found that many mortgage project in fact was to dig a pit, to sky-high price of real estate collateral, but the “castles in the air.”

“I spent 40 years in Hainan, witnessed the madness that time reselling the property, the collapse of castles in the air, making the contractor on schedule was finally forced to strip from the bank to the non-performing assets of the company. People go floor space 10 years, most of the bad Last House is cheap and the transfer and re-built, sold without the knowledge of outsiders. “

Mr. Zhang is still doing real estate said that although the first time in 10 years, but must guard against making the same mistakes again in Hainan.

But Mr. Zhang also believes that compared to that era, the current is still relatively rational, Hainan. 90s of the last century, physical investment was scarce, the majority are reselling a piece of land in a map with the land as long as the card can be transferred between twenty and thirty times a day, the price can be turned 20 times. Is pure get money, no physical investment.

“Right now, although did not rule out the bubble fired up, but the investment is visible entities in the market. Now the price of the real estate bubble is a bubble, but those days are in a market fraud.” Mr. Zhang said.

Of course, Mr. Zhang agree that once the bubble bursts, the end result is the same – a large number of residential flats and bank debt. The best economy has been getting better, or as of the last century 90′s Hainan Dubai real estate bubble, and now, as the real estate industry will be plunged into a serious recession.

Hainan Lianhua initiatives in companies who also believes that the biggest risk, will be touted as the concept of Hainan, local real estate risk, because the first line of the sea to Hainan has been sold VIS, rely on the land to pull the financial GDP of Hainan province, the future of sustainable development will be the biggest problem. The Government should learn from the lessons of Hainan lesson and Dubai, an appropriate regulation of real estate, check the blind momentum of development.

Source: China Times