Prices fell from $130,000 per square metre to $50,000 per square metre, and the most representative high-end project in hainan sanya, phoenix, finally stabilized after years of cliff-break. This also means that investors who entered the market in 2010 when the international tourist island was scheduled to explode have suffered heavy losses。
The real estate sector's risks have re-emerged into discussion with sharper price reductions in some urban buildings. Hainan, with its unique geographical location and natural resources, has always been a hot spot for major developers and city investors in the country. During a recent visit to hainan, journalists found that the city of hainan had gradually returned to rationality after several consecutive years of cooling, and that it was now largely out of reach of its investors, which, after years of speculative impulses, had left the interior of the island huge. Although the construction of the international tourist island has been under way for more than four years, there is an urgent need to improve the facilities in many parts of hainan, which has led to a large number of hometops for subsistence and vacation in hainan to own just a pile of cement。
Prices fell from $130,000 per square metre to $50,000 per square metre, and prices stabilized after many consecutive years of cliff-breaking, the representative hainan sanya high-end project, phoenix. This also means that investors who entered the market in 2010 when the international tourist island was scheduled to explode have suffered heavy losses。
“the share of the investors who entered the market in 2010 is now largely in a state of full-line trapping” focused on the journalists, according to li inong-taek, director general of the development department of the world bank’s south china advisor for more than 10 years in the city of hainan building. For a slightly stronger investor, there is still some time to go, while for a weak investor there is only a fallback. The problem is that the market in sanya is “unpriced” and, although it is full of second-hand sources, there are not many real deals. “it's hard to get out of here once it's caught up in it”, li said。
According to the data, the prices of the popular hainan and sanya buildings have begun to fall. The average house price at the sea mouth rose from around $8,000 per square metre in 2010 to close to $10,000 per square metre in 2011, while in 2013 it fell back to $9159 per square metre, a decline of nearly 10 per cent. The average price of houses in sanya also began to fall after it hit its peak in 2012, with an average residential price of 22,000 yuan per square metre in 2013, down 7 per cent from the previous year。
