Hainan probes for healthy property market development
"I think the government as well as property developers should protect this market by setting up a danger alarm system. The local government's property development policy should be able to guarantee sustained development of the industry, and preparations should also be made to ensure that even in case of a bad macro-economic environment elements are in place to support the stable development of the industry."
As more and more foreign expatriates buy houses on Hainan Island for vocational and retirement purposes, the number of empty houses is increasing. The Deputy Chairperson of China's Real Estate Association Zhu Zhongyi suggests that quickening the development pace of the second-hand housing market and house rentals will effectively solve the problem.
"Hainan should quickly draw up a policy on how to develop its second-hand housing and house rental market to encourage those who do not live on the island to rent out their houses to tourists who want to enjoy a short stay. This way, house owners, tourists and the local government can all benefit".
Hainan island has 8 million residents living on 35,000 square kilometers of land. As commercial house prices soar on a daily basis, providing affordable housing for locals has become a primary task for the local government. Here's Deputy governor of Hainan, Jiang Sixian once again.
"Increasing the amount of government-subsidized housing is the most important task for Hainan this year. We are going to build 100,000 houses for those with a lower income this year, and some projects have already began. Upon completion, they could improve the housing situation for one eighth of the urban dwellers in Hainan".
Jiang says that while developing its tourist housing market, the local government will also increase the availability of affordable housing and low-rental properties to ensure that locals benefit from the process. He says he is confident that Hainan island won't suffer a repeat of its 90s house market collapse.