Hainan-Sanya-Haikou Expat

Seems that 20 celebrities including British Actor Hugh Grant and Matthew McConaughey will be at the Celebrity ProAm Golf Tournament chasing an incredible "winner takes all" purse of 1.28 million dollars. Taking place at the end of October, "two-time Open Championship winner Greg Norman, China's multiple Olympic gold medal-winning gymnast Li Ning and Japan's No. 1 comedian and talk show host Akashiya Sanma will serve as Host Ambassadors for the Mission Hills Star Trophy.", according to a story found at World Golf. The rich continue being rich while, by the way, I am daily receiving articles and reports from numerous sources suggesting that Hainan property prices, true or not, are dropping like a rock.

So is that "Buyer Beware" or "Buyers Be Where?"...?

The description of northern Hainan Island's expansion around the golf industry is impressive. According to a press statement released by Buffalo Communications, "Mission Hills Hainan lies in the volcanic region of exotic Hainan Island, China. The resort sets a new standard in leisure, recreation and wellness experiences. Nestled amid lush, green gardens, the resort caters to golf enthusiasts and comprises specially-designed golf courses, each one incorporating the native lava rock formations. Other state-of-the-art features include 525 tastefully-appointed guest rooms and suites, a three-story clubhouse, meeting facilities, 12 world-class restaurants, a fully-equipped sports and recreation center, Hainan's only aquatic theme park, therapeutic natural mineral springs, a spa oasis, and a shopping arcade. A magnificent addition to Hainan's tropical island paradise, Mission Hills Hainan is poised to be the island's premier sanctuary, attracting visitors from around the globe."

World Golf Article Here

Hotels in the Asia Pacific region experienced
increases in all three key performance metrics for
May 2010, according to data compiled by STR Global. In
year-on-year measurements,the Asia Pacifi c region’s
occupancy rose 15.3% to 63.1%, average daily rates (ADR)
increased 8.6% to US$126, and revenue per available room
(revPAR) jumped 25.2% to US$79. The largest increase
was in Shanghai, where the fi rst month of the World Expo
saw revPAR surge 100.5% to US$102. Three other markets
posted revPAR increases of more than 40%: Hong Kong
(+51.9% to US$146), Beijing (+45.4% to US$63), and Kuala
Lumpur (+40.4% to US$72). Bangkok reported the only
revPAR decrease, falling 45.8% to just US$20, following the
clampdown on anti-government protests in the Thai capital.

Travel Daily Asia Website

......according to a very credible, longtime business and property owner in Haikou, when the sudden surge in property prices on Hainan took hold in the past three weeks, property values of new local oceanview apartments at the North Shore Beach area near the Sheraton Haikou shot up between 200 to 300% from 10,000rmb psqm to OFFER prices by eager buyers of 28,000rmb per square meter which are being summarily TURNED DOWN by property owners . UPDATE 2/5 - these wild prices increase are ONSITE CONFIRMED...I visited several properties in Haikou during the past two days...asking prices for seaview villas at Vanke's Business Club property moved from 25,000rmb psqm last month to 40,000rmb psqm this month; apartment prices from 10,000 to over 20,000rmb psqm...in the city' Guomao area....+ 15,000rmb sqm....Haikou?? NUTS boys 'n girls!!

On another note, I do have a new property listing for our readers and clients - this is a 200 MU property parcel now available on the dark side of the moon at only 2500rmb per sq meter, comparable to current prices in the Li Jiang Yunnan region. Prices are still reasonably low because that particular region of the moon is quite cold and undeveloped to date. However, showing a high level of foresight on such matters, each villa will have in floor solar heating to keep your toes warm whilst you are trying to catch your breath in the thin, dry air at such high altitude. I know you may be confused regarding things such as gravity and atmosphere and build quality. Its ok. Really.

Finally, it is rumored that groups of investors from Wenzhou are currently eyeing and about to snatch up this particular new project development. We also heard that Shanghai real estate veteran Sam Crispin is also moving quickly for his slice of the moon mu pie.

Deposits for PHASE II Moon MU

We are now also accepting refundable deposits of 100,000rmb per MU for the PHASE TWO development which sits on a separate parcel on a much more attractive mooncrater hillside with partial sunsets which we have set to begin construction just after Chinese New Year 2013. Prices on the PHASE II development will be announced at that time. But don't worry as we are quite certain the PHASE II asking prices will not go up as much as they have in the past three weeks in Haikou and Sanya, suggesting an outstanding investment opportunity on the horizon, um sorry, on the moon.

For further research we recommend you google keywords "china, haikou, sanya, moon, bubble?, property, investments, gambling, is there any air on the moon?"

Cheers, Mario

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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I find it an interesting coincidence that public proclamations by the Chinese government are occurring JUST before the Chinese New Year to make Hainan Island an "international" destination, feeding the frenzy of rising property prices down here. Such PR proclamations have been heard before and are nothing new. However, at this time, we can see clear evidence that the real estate and resort development efforts are decidedly more to the upscale and luxury market including the world's most famous luxury hotel brand names and world-class golf resorts.

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