Tags: property
China's Homes Are A $15 Trillion Store of Wealth
Whether located on Hainan or one of China's other provinces, the level of debt-free home equity found in the lower and middle class sectors of the housing market is a big bunch of Hainan coconuts - $15 Trillion by my reckoning
I'm pleased that the market and investment advisory website run by Wall Street veteran Rick Ackerman continues to feature my China articles and this latest article takes a closer look at this massive cauldron of equity and its possible impact on all of us in and out of China.
Make no mistake, Chinese are frugal and the greatest savers in the world, however the push is on by the banks for Chinese consumers to get into the American credit card lifestyle. Will Chinese ever use a credit card or home equity loan to finance their holiday like Americans were brainwashed to start doing? Will they tap into their home equity, when and why? Just click on the link to read the feature article at Rick's website.
$15 Trillion of Debt Free Home Equity In China
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Shanghai Property Sales 50% DOWN, Auto Sales 50% UP, and CoffeeWorld Now Has Shepherd's Pie On The Menu!! ...Hmm?
This interesting juxtaposition just in from CapitalVue.com. Money just flows in and out of different places on the whims of what?....we've got plunging home sales along with rocketing auto sales here in China...as if the roads aren't already crowded enough with too many cars?...Cheers, Mario
July 7 -- The transaction volume of Shanghai's previously-owned properties plummeted 50 percent year-on-year to 69,100 units in the first half of 2010, reports Yicai.com, citing statistics from Century 21, a real estate services provider.
July 7 -- SAIC Motor (600104) recorded 43.93 percent and 44.89 percent year-on-year increases in auto production and sales volume in the first half of 2010 to 1.74 million units and 1.77 million units, respectively, according to a company filing
And now this...Sanya Restaurant Corner Sneak Preview...CoffeeWorld's got some new menu items including a new Homemade Lasagna and tasty Shepherd's Pie...that's mashed potatoes, ground beef with tomatoes, baked with bubbly cheese on top...post and photos coming soon!
Hainan Property Prices Plunge...Oh Really?
It is reported recently that, as across many bubbly spots in China, Hainan real estate has PLUNGED 30% from its high. Let's analyze this nonsense a bit closer.
June 17 -- CapitalVue News reporting that...
...Average transaction prices plunged 29.74 percent month-on-month...
The Hainan commercial residential property market experienced a significant decline in both transaction area and transaction prices since March this year, reports Xinhua, citing the provincial Department of Housing and Urban-Rural Development.
"...The province recorded a 19.05 percent month-on-month decline in the transaction area of commercial residential properties to 627,700 square meters in March. Average transaction prices were down 12.82 percent month-on-month to 12,280 yuan per square meter..."
Oh Really?...this roller coaster is getting to be nonsense, check out my real estate videos comparing luxury oceanfront apartment developments in Penang Island, Malaysia at 16,000rmb psqm to Sanya Bay at 42,000 psqm
Penang Island At One Third The Cost of Sanya Bay
Prices on Hainan did an orchestrated "pump and dump" jump of 50 to 100% in January....Lord help all those January suckers who let themselves get sucked in like addicted table gamblers in Vegas after the Wenzhou clan smelled money, went in, bought it all up, dumped it and went back home to leave the mom and pop retail buyers holding the bag, no different than the Wall Street game might I add and a sad commentary on greedy ways and fools in just about any country on earth...
So let me do the calculation: A sample newer beachfront apartment in Sanya was going for 15-20,000rmb psqm. In January, the price jumped to 25 to 50,000rmb psqm depending on whom you ask, and now the price has PLUNGED back down 30% which would make it 17,500-35,000rmb psqm...is that the size of it? Oh yea, now we all know the real prices and understand the real estate market.
Did you know that the real prices of properties is based in the U.S. on the MLS, the multiple listing system, where you can see the actual sale price of every property in a given neighborhood. Did you realize that the same information IS available in China. Go to the Sanya government property office to inquire about how many transactions there have been in the past month and at what price and guess what, that information IS available to you.
I am told by a number of experienced real estate agent that in Ban Shan Ban Dao there are dozens of sellers who all have their properties for sale asking over 40,000rmb per square meter and that there has not been one single transaction there since the January pump and dump. People who have their apartments for sale have them on sale at pumped up retail prices and don't really want to sell them, they're just fishing to find an idiot and unfortunately there are plenty of idiots out there.
Am I being negative? No, I'm being HELPFUL!
Missing the beach yet enjoying our Century Park Shanghai apt immensely,
Cheers, Mario
Sanya Property For Rent: Lovely Lin Chun Lu Riverfront Apartment Available for Co-Rent Share
We have a lovely, fully furnished, modern, large 115sqm 2 bedroom, 1 bath apartment located just behind the Miss World Beauty Crown Center along the quiet riverside of Lin Chun He Lu. Perfect central location 20 minutes to airport, 5 minutes to downtown Sanya city, 10 minutes to beaches at Dadonghai or Sanya Bay.
If you are interested in six month or one year rental of one room, its 1800rmb per month for the larger bedroom and 1400rmb per month for the smaller bedroom, let us know. If you are interested in reserving one of the bedrooms for shorter term vacation time in Sanya, one month minimum at 2500rmb per month for the larger bedroom and 2000rmb per month for the smaller bedroom. If you know you will be spending time in Sanya this coming year, suggest you think ahead to reserve and pay for it now or you'll just end up paying double later. When the season hits staring October, this level and location apt is 3-5000rmb per month and beachfront apts are 6-12,000rmb per month.
Catch Mario's Coming Interview on Bloomberg Television
Having seen the Hainan property story on the front page of Dow Jones' MarketWatch website a couple of weeks back, we realize Hainan is now mainstream news and I was pleased to receive another media invitation, this time for an interview with Bloomberg Television, which will air worldwide later this week. I'll be sure to place the link to the story on the site here as soon as I receive it from Zeb Eckert, the lead reporter who flew into Hainan for the story and did a great job catching the key points.
The Market and China Advisory Monthly Newsletter is available at $109 per year PLUS you receive a FREE copy of The New Reality, Mario's new 111 page e-book on business, world culture and China.
The Dubai - Hainan Connection: The Wizards of Wenzhou Strike Again
What does Dubai have in common with Hainan Island, China?
Answer: China's infamous millionaire real estate speculators of Wenzhou. I was recently pointed to a juicy background story at India Times of global property speculation leading from Wenzhou across the globe to Dubai and then back to Hainan Island where just one month earlier, the Wenzhou gang descended upon this tropical island paradise in a well-timed frenzy of property speculation, even by fast-rising Chinese property market standards.
From the India Times Article:
Millionaires from the isolated coastal city of Wenzhou, a centre of Chinese private enterprise, have fanned out across China and overseas over the last decade in search of property that they buy, and often quickly resell at a profit.
They may collectively face about 1 billion yuan ($146.5 million) in losses as the Dubai real estate market contracts, the head of the Wenzhou SME Business Development and Promotion Association said on Wednesday.
This story broke back in December revealing that in fact it was Wenzhou native Hu Bin, chairman of Shanghai Zhong Zhou Group, who laid out $28 million to purchase one island of the World Islands project set for luxury development and now looking more like a desert mirage. Post Dubai crash, Wenzhou investors are looking for the bargains there once again. "Since the recession on real estate in Dubai, I've led three groups of investors to Dubai to investigate properties," said Chen Zhiyuan, the president of Wenzhou Chamber of Commerce in the United Arab Emirates. According to a February report in China Daily, "Wenzhou, China's private capital powerhouse in the southern province of Zhejiang, is among the richest areas in the country and the birthplace of self-made billionaires who are manufacturing clothes, shoes, and other small commodities like lighters."
Chart from a related article at Business Insider
In an effort to identify where else the Wenzhou investment groups may be targeting for their investment hoards, we dig deeper to find a recent yet poorly translated article at www.kinablog.com , where we find the following:
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