Hainan-Sanya-Haikou Expat

The January 29th edition of China Daily features a front page story on skyrocketing real estate prices here on Hainan Island. In the past month, prices here have been driven up from already too high prices an additional 30% in a orgiastic buying frenzy.

This recent development coincidentally occurs in an orchestrated asset dance as during the past month, the Chinese stock indexes began to decline while the Chinese government makes a special proclamation that Hainan will receive special attention and incentives to be developed into an international luxury level destination.

Furthermore, it needs to be understood that during the past year strategic decisions were made to take Hainan Island upmarket as a more exclusive, luxury level tropical island playground for the wealthy and privileged. St. Regis and MGM Grande will join the resort lineup at Yalong Bay. Shangri La, Fairmont and Starwood's Luxury Collection Malus will flagship the Haitang Bay development. Lu Hui Tou's Banyan Tree Villas and Intercontinental will be joined by Four Seasons alongside the peninsula's exclusive golf course and Ban Shan Ban Dao luxury apartment & villa development.

Next page: Where to put your money next?

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According to a recent article at Travel Daily Asia, Starwood Hotels and Resorts has announced the signing of deals to open its first two ‘The Luxury Collection’- branded properties in China.

The Astor Hotel, a Luxury Collection Hotel, is scheduled to open in Tianjin as a Luxury Collection Hotel in May 2010 after a US$22 million renovation, and The Malus Sanya, a Luxury Collection Resort, a new-build resort, is set to open in late 2012.

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Many of us enjoy tropical beaches and Sanya is China's only true, genuine tropical beach destination. Over the past 3 years of development "Sanya" has become the catch-all word comprising the 160kilometer south/southeast coastline starting from the Kempinski Resort at Sanya Bay running up through Dadonghai, Yalong Bay and Haitang Bay to the Le Meridien Resort at the northern side of Shimei Bay. Over a period of four years since first arriving, Sanya has been good to us and many of our friends. I have gotten to know her intimately, in great detail, both personally and in terms of business and market research.

Today, I cannot encourage you to join the speculative fools playing the Chinese real estate and stock markets right now, including Sanya's property market. This is an ugly and unfortunate scene, with prices way too high, way too fast, even though it might continue a while longer. Less than 1 1/2 years ago a very knowledgeable local business owner and I sat over coffee discussing that prices in the area will most likely reach 20,000rmb per square meter "someday", probably two to three or five years later. Since then, prices have rocketed to over 30,000rmb psqm and higher. The cauldron of witches brew is boiling and buyers are stepping back.

Andy Xie, ex-Morgan Stanley China analyst in the U.S., has recently called the real estate and stock market rise in China a giant ponzi scheme. Strong words from a person we can rightfully call in the know. Please be sure to at least read his remarks further on down in this report. After exhaustively analyzing and watching both markets, I am grateful for the returns I've made and now I am getting very jittery at these heights, in full agreement with Mr. Xie.

"Looking more broadly beyond the real estate market, we can also sense there is a strong case of bias emerging from Chinese big business to subtly push foreigners out of China, as they come up with one big event excuse or another (Beijing Olympics, 60th National Day Anniversary, next the Shanghai World Expo) to severely limit visa permissions and make it harder to do business according to the recent scathing European Commission Annual Position Paper. The Chinese are perhaps starting to enjoy their little victory party as they seem to be the pied piper leading the world out of its economic crisis. America is cash broke. Europe is cash broke. Asia is flush with cash starting with China. That's the economic reality and in fact we should appreciate its importance and value." Mario Cavolo

Indeed, the global depressed economy is causing companies to cutback on expenses and one way to do that is to localize the expat management positions and send the expats packing as many companies have needed to do.

As I am the only person on planet earth who writes and publishes a reasonably accurate and detailed Sanya Real Estate Quarterly Report, that makes me the de facto investment real estate analyst of the moment whose job is to sometimes go out on a limb and call the bubble. There is always some possibility the bubble will continue for a few more years to even dizzier heights before it inevitably will burst. If so, it is I who am the fool today. If not, it is I the revered wizard analyst tomorrow. If prices are substantially higher in the next 2-3 years, that state of economic affairs will probably also reflect severe inflation and currency devaluation issues worldwide as the underlying financial crisis continues to unwind in ways we haven't seen yet. The unwinding of the crisis is far from over and we shall see.

Going into the background analysis of the property market here, I start by enabling you our valued and appreciated readers to understand this bubble very quickly by making you a genuine Sanya real estate apartment offer. Do take a moment to compare this sample Sanya real estate offer to other possible choices you have in China, and also compared to other possible countries in Southeast Asia, North America, Australia/New Zealand and the European Continent.

Go to the next page to view today's amazing ocean-view luxury apartment offer and judge the lunacy for yourself!

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