Sanya Expat

As indicated in this recent release, Hainan property prices went ballistic starting in January...locally it is also very clear that there are more than a handful of owners with their properties for sale to lock in profits....very wise from our point of view...Cheers, Mario

Home prices in Haikou, capital city of Hainan province, soared 31.8 percent year-on-year and 19.5 percent month-on-month in January 2010, reports Xinhua, citing data from the Haikou Investigation Team of the National Bureau of Statistics. The rate of increase accelerated by 21.9 percentage points compared to the previous month, setting a new record high.

In January, prices of previously-owned homes in Hainan province rose 29.5 percent year-on-year, while prices of newly-built homes rose 33 percent year-on-year or 19.1 percent month-on-month. Prices of newly-built normal residential homes rose 37.8 percent year-on-year or 20 percent month-on-month. Prices of high-end residential homes rose 29.3 percent year-on-year, while prices of high-end apartments rose 31.5 percent year-on-year or 17.5 percent month-on-month.

Those of us residing on Hainan Island, China, particularly in Sanya, can enjoy feeling a bit puffed up due to a mainstream media front page story out of Market Watch's Hong Kong bureau on property prices gone wild here. When property values double in price in less than two weeks it should make the front page news. Indeed, these price moves could make derivatives traders blush.

As the publisher of Sanya's Quarterly Real Estate Report, our research and history on the ground in Sanya since 2006 led us to predict near the end of 2009 that prices for ocean front properties would and should level off in the 15 to 30,000rmb per square meter range. That's US $200-$400 per square foot.

Well, we were wrong. Wrong because reasonable based on the past doesn't apply in today's economic environment, both globally and in China.

Next page - taking a closer look to gain some insight.

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......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

Does our venerable and respected real estate veteran Sam Crispin hit the mark with his round two jab on the continued boiling cauldron of real estate stew here in Sanya?...

Sam recently weighed in with this insightful and important comment:

"Rumours about of Hainan offering visa free access for nationals of over 20 countries and that the real estate market, as I and not Mario predicted, is going nuts again. Watch what happens over Chinese new year, that's the peak sales season in this hot, hot, hot market! Mario, there's more than one beer riding on this."

Perhaps Sam hits on some encouraging thoughts here with some substance behind them. In fact, with the Chinese New Year holiday coming, he is right on the mark regarding the seasonal bump in asking prices heading into the Chinese New Year season, so there is some truth to the idea that the market is "heating up" a bit. After all, I hate to be a touch negative but the holidays are the perfect time to find more suckers bidding prices unreasonably higher and higher just like the stock markets. And if they're willing to come to Sanya that week paying full airfare and 5000rmb/night for a 15000rmb room, by all means, let them pay inflated prices for Sanya's property too!

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One Month In America: A Series by Mario Cavolo
Part I. Ladies & Gentlemen, America Is ON SALE

Its easy to realize that being based in China for almost 10 years while only returning back to your home country every couple of years gives you a fresher, broader perspective on the world's happenings. We have just wrapped up our very enjoyable one month visit to the United States, our first visit in two years, with a surprising variety of observations and conclusions. Our rather diverse travel agenda included the New York area for a week (all of Manhattan Island, Queens, Brooklyn, Yonkers, Bronxville) plus north into the beautiful Hudson River Valley, Phoenix for 15 days including Northern Arizona; Sedona, Flagstaff & The Grand Canyon, plus 4 days enjoying Las Vegas and Los Angeles. We both visited family and spent time as "tourists". I believe we are going to be able to share valuable insights in this series of articles on America, including fascinating comparisons of the contrasting trends taking hold in the U.S. and China.

Let's start with one unmistakable fact: America Is ON SALE and that's a very, very good thing...

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