Will the property market in Hainan cool down?
"Now I can't even pay the down payment, let alone buy one without a bank loan. I think most wage-earners like me couldn't afford to buy a house."
Official data shows that the average housing price in Sanya has reached 20-thousand yuan per square meter, nearly twice last year's price. Is there a bubble in the property market? People hold different opinions on the question: Li Honghai, director of the Sanya Housing and Urban-Rural Construction Bureau, says there is no bubble at all.
"There could not be any bubbles. Since China's reform and opening-up, people's lives have improved and they have saved some money. It's good to see that they'd like to invest in Hainan, and the supply and demand for housing here is balanced."
However, Chi Fulin, executive director of the China Reform and Development Research Institute, disagrees:
"The Hainan international tourism island is attracting many investors. However, we haven't made medium- and long-term development guidelines and haven't carried out effective plans yet, which has led to soaring housing prices and bubbles in the property market."
But Chi Fulin also notes that the bubble is only a short-term phenomenon and he is optimistic about the future development of Hainan.
"Hainan will make policies to guide investors to transfer short-term investment into medium- and long-term investment. As the housing prices will cool down, I suggest home buyers don't rush in at this moment. The government will also strengthen its management of the tourism market, thus creating a healthy environment for the development of Hainan Tourism Island."
Officials from the provincial government say they have already made plans to provide more than 100-thousand units of affordable housing for low- and middle-income families. Policies designed to curb the soaring property market are also on the agenda.