Apartments For Sale On Hainan Island, China.

 

APARTMENTS For Sale ON HAINAN ISLAND.

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About Living And Holidaying On Hainan Island, China:

Sometimes considered ‘China's Riviera' or the ‘Miami of China', Hainan Island, and in particular Sanya, is the site of a booming property market and a vastly ambitious lifestyle revolution for Apartments for sale on Hainan Island.

Arriving in Sanya, the only thing as conspicuous as the balmy weather is the island's booming property sector. Real estate ads dominate billboards along the airport expressway, project flags flutter throughout the city streets, and the faces of Chinese stars like Zhang Ziyi and Fan Bingbing adorn commercial banners - the latest branding experiment for developers.

Sales offices and showrooms are bustling with a steady stream of visitors for Apartments for sale on Hainan Island, both domestic and foreign, while rows of brand new residential buildings line the coast, their empty balconies belying sell-out successes.

Despite strong sales and rapid development all along Hainan's east coast, a startlingly peaceful atmosphere dominates the area, as many properties are used only a few weeks out of the year.

As the island's market-led real estate develops and investor standards pick up, the variety and quality of available products is quickly following suit.

Resort-style projects dominate, and opportunities have drawn mainland developers, experienced with large scale, urban, and mix-use projects and adapt these to a tropical setting.

Hainan's unique climate and environment makes golf clubs and marinas a desirable addition to high-end resort and leisure projects.

In spite of the substantial investment required to support such facilities, almost all of the high-end projects located in the greater Sanya area, have integrated both marinas and 5-star hotels into their blueprints.

Alongside Hainan's laid-back island lifestyle, its beaches and ocean views, a hugely ambitious lifestyle revolution is stirring - and with the proper long-term planning in place, the tropical island may not need Miami to refine its identity.

General Background

Hainan has a total area of 33,920 square kilometers. The total population stood at 8.54 million in 2008. Hainan used to be a special administrative region of Guangdong province, but was designated as a province and a special economic zone (SEZ) in 1988.

Hainan island is rich in natural resources. Its inland and offshore deposits of oil and natural gas rank one of the highest in China.  Hainan has gas reserves of 99.6 billion cubic meters in the main sea basins including the Yingge Sea.   Since 1996, Hainan has provided gas to Hong Kong through a 770-kilometer pipeline, supplying 2.9 billion cubic meters annually. Hainan is rich in certain mineral resources. Its reserve of Titanium is about 70% of the national total. It is also China's major sea salt production base. The Yinggehai Salt Field, one of the top salt fields in China, is located in the province.

In its 11th Five Year Programme (2006-2010), much emphasis will be put on modernising agriculture and providing ancillary infrastructure and assistance; and developing the province into a recreational tourist destination. Development of the natural gas and petrochemical industries will also be the focus.

Tourism

Hainan is keen on utilizing its tropical tourism resources such as mangrove forest, coral reefs, beaches, tropical cash crop plantations and rainforest.

Sanya, a tropical beach resort located in the south of the island, is designated as one of China's 11 major tourist and holiday resorts by the State Council.  Hainan also offers numerous tourist festivals and celebrations. "The Hainan Coconut International Festival" which is held annually attracts thousands of overseas and domestic visitors. Other cultural and recreational activities included film festivals and international golf contests. The Boao Forum for Asia, modelled on the World Economic Forum, is held every year in Boao of Hainan for Asian leaders to discuss issues.

The local government strives to turn Hainan into an international tourist destination and has developed four resort areas: Sanya Beach Holiday Development Zone

Total number of tourists and receipts of tourism (2009)

  2009 % change
Number of domestic tourist (million) 19.6 10.8
Income generated (RMB bn) 16.5 10.3
Number of overseas tourist (thousand) 979 - 5.5
Foreign exchange income (US$ mn) 390 4.4

Source: Statistical release 2009

Aviation is vital to Hainan as an island. It has 2 international airports in Haikou and Sanya. To facilitate tourism, the Civil Aviation Administration of China has agreed to open the 3rd, 4th and 5th aviation freedoms in Hainan. Hainan is the first place to enjoy such treatment in China. As a result, it would be easier for foreign airlines to establish a presence and run international services.

Foreign Trade

Hong Kong was the leading export market for Hainan. In 2008, Hainan exported US$576 million (+36.1%) to Hong Kong. Other major export markets included the US and Japan.  Major export items include minerals, natural gas, food, beverages, textile materials and products, transportation equipment.

Major import sources were the US, Japan, Germany and France. Major imports included steel, equipment and appliances and electrical products etc.

Foreign Investment

Hong Kong is the biggest investor in Hainan. Hainan is the ancestral homeland to many SE Asians, and investments from these ethnic Chinese represent an important part of Hainan’s FDI. Other major investors were from the uk, US, Taiwan and Singapore.

Foreign invested projects mainly engaged in transportation and telecommunication services, tourism, hotels, Apartments for sales on Hainan Island and real estate development, and energy. Haikou and Sanya were the leading cities in Hainan to attract foreign investment.

Consumer Market

In 2008, retail sales of consumer goods in Hainan rose by 23.9% to RMB44.8 billion, and annual per capita disposal income of urban households reached RMB12,608 (+14.6%). Haikou and Sanya are the major consumer centres in Hainan, accounting for 60% of the total province’s retail sales of consumer goods.

Composition of Per Capita Expenditure of Urban Household (%)

  1995 2008
Food 59.3 44.9
Clothing 6.4 5.2
Medicine & medical services 2.6 5.7
Transport, post & communications services 3.0 13.9
Recreation, education and cultural services 10.0 9.9
Residence 6.8 11.8

Source: Hainan Statistical Yearbook 1998, 2009

With continued rises in income and economic reforms, the consumer expenditure pattern is also undergoing structural change. With the share of food declined, expenditures on services, in particular transport and communications and housing have gained in relative share.

A number of foreign supermarkets such as Carrefour and Rt-mart from Taiwan have emerged in Hainan. Naoguo Shopping (南國超市) is one of the well-known local retailers.

Economic Indicators of Major Cities (2008)

Cities Population
('000)
GDP
(RMB bn)
Per capita GDP (RMB) Gross Industrial Output*(RMB mn) Retail Sales
(RMB mn)
Haikou 海口 1,558 45.7 29,601 30,532 23,475
Sanya 三亞 546 15.4 28,418 2,511 3,877
Wenchang 文昌 571 8.4 14,811 1,469 2,243
Qionghai 瓊海 482 7.6