Hainan Province, China’s only tropical region, is expected to receive more real estate investors in the near future due to its favorable weather and natural beauty, according to an article by China Daily.
The primary target of real estate investors, particularly wealthy Chinese, in Hainan Province is vacation residences.
“Favorable climate and better transport links have prompted the more affluent to take a second home or a holiday home in Hainan,” Wang Lu, chairman of Jincheng Consultancy, a real estate information provider based in Haikou, told China Daily.
According to information gathered by the Hainan provincial real estate bureau, the province saw a 44 percent increase in house sales in 2016. In addition, sales volume within the same period jumped to 129 billion yuan, which represents a 51.2 percent increase year-on-year.
“People who bought houses in Hainan used to be pure investors but now most of the buyers are purchasing homes for vacations or as a reservation for their retirement, for their parents or for their children,” said Zhong Liansheng, general manager of Sunac China Hainan Co Ltd, in an interview with China Daily.
Home prices in certain areas of Hainan Province have been driven by demand. In Sanya, for example, the average price of commercial apartments have increased by roughly 16 percent. Sanya realty management authorities have also shared that transactions increased 127 percent year-on-year in the city.
According to China Daily, funds continue to flow into Hainan Province’s real estate market, with steady a steady rise and decrease on stocks.
“Among the country’s top 20 leading property developers, 18 have invested in Hainan, such as Sunac China Holdings Ltd, Greenland Group, Evergrande Real Estate Group, Dalian Wanda Group Co Ltd, and R&F Properties Co Ltd,” said Wang. “All of them continued to pour money into the island in 2016.”
Along with demand, Wang also attributes the interest of real estate investors on Hainan Province to the thick coat of smog prevalent in northern China.