Will the property market in Hainan cool down?
After China revealed a plan to build its tropical island of Hainan into a top international tourist destination earlier this year, the news injected great energy into the local property market. Will soaring housing prices, which members of China's top advisory body have pointed out, hinder the process?
Seaside View is a newly-built estate in Hainan's coastal city of Sanya, located near the beach.
From its windows, one can get a full view of the sea and enjoy the warm sunshine. Its ideal location and the news that Hainan is poised to become an international tourism island have combined to push the opening price of this estate way beyond people's expectations. A salesperson says:
"The average price of this estate is 80-thousand yuan, or nearly 12-thousand U.S. dollars, per square meter, and will continue to rise. If you want to buy, you should pay it off at one time."
But the incredibly high housing prices haven't prevented people from buying. Home buyers from all over the country have flocked to the island, hoping to earn money on their investment.
"I think the housing prices in Hainan will continue to rise because it's an international tourism island."
"I hope my investment will bring me some benefits. If I don't buy one now, I'm afraid the prices may rise."
"Money is not a problem for most investors. What they are concerned about is whether there's a house left for them."
However, the rocketing prices seem a nightmare for local residents. Twenty-four-year-old Wu Tuan experiences the effects of this heated market.