Hainan Property Prices Take a 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

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