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Feature Story: Hainan Property Prices Skyrocketing as Mainland Speculators Descend Upon the Island In An Orgy of Lustful Insanity
More to the point of today's China Daily article, we're all watching in awe and disbelief as mainland speculators fat with two years worth of trading and flipping property profits are descending like a swarm of locusts on China's only true tropical island destination. In many ways, it does make sense.
Stock Market and Real Estate Speculators Locking in 2009 Profits: Where To Put Their Money Next?
With the Shanghai, Shenzhen and Hong Kong indexes leading the global stock market decline starting two weeks ago, it appears the smart money speculators and insiders are dumping their stocks which have doubled in the past year, bought by the way on borrowed money, taking their profits. The real estate market is no different; with flipping and rolling of their 100% real estate gains in 2009.
Now they're on the hunt for the most reasonable place to put their money besides a bank account or the declining stock markets of the world and Hainan island property seems the darling destination of the day. Of course I shouldn't suggest there is coincidence that those speculators, government and real estate developers are all under the same sheet together enjoying their well-crafted bliss.
Greed Knows No Bounds Nor Common Sense
The China Daily article even points out that developers are manipulatively suspending sales waiting for the prices to fly higher before allowing anyone to buy.
During the past five years, normal wait times to receive your house key when buying a property on spec (common here) was one year. For most current properties, the wait time to receive the key has stretched to two years. Phase IV at Ban Shan Ban Dao Phase I, II and II located on Lu Hui Tou Peninsula are completely sold out. Phase IV will consist of eight buildings, four of which are now available for deposits to reserve confirmation when units go on sale at an estimated 40,000rmb per square meter according to the sales center representatives. Currently, two thirds of the units have been reserved with deposits, assuming there is no fibbing going on.
My awareness and understanding of the reality of government/big business manipulation of the markets has become so much clearer during the past year that my view of the world has been transformed. I absolutely believe the Chinese DaBoyz know exactly what they are doing, orchestrating an unprecedented grab for power and riches, the mother of all carefully-crafted pump and dumps.
1 comment
Perhaps I'm cynical, but this seems to be a great way to stimulate the sale of unsold properties, threaten a shortage and drive up prices. Direct observation indicates 20-30% rises in asking prices in the last couple of weeks. To be fair, the ban will also rein in the rampant practice of unauthorized building on every available piece of land and the adjoining green belt too.
The main topic of conversation among locals is the rise in apartment prices and how to jump onto the elevator, not necessarily in Sanya. Just yesterday, fueling this, I noticed a sort of "town hall" meeting with the "Top Leader" of Hainan on CCTV 2, again extolling the present and future virtues of the island.
Loads of hype, but I have a feeling that it's all true... these guys have a plan and they know how to execute!
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