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So most of you know about the Hainan "Real Estate Bubble"
My former business partner in Shanghai has opened a Real Estate Agency there last year.
I went to check it out since he's making a killing in transactions and sales and buying himself also.
(of course also to get into the game as well).
I was surprised to what kind of conditions I found over there, during the "quiet season" that is summer.
To have you baffle yourselves too,
maybe you want to play a guessing game, trust me the revelations will be mind boggling and I quite don't understand the underlying meaning of it myself.
Real Estate Prices are as high as Shanghai for some of the better properties in Sanya.
from 30k per square meter to up to 200k for the most lavish penthouse on the phoenix island.
Ownership differs from the rest of the country, it's a landownership with extra taxes but you own the property "more" than in Shanghai for example.
Lown policy is the strictest I have found in all of China, and it's imposed by the sellers developers as well as individuals both are very strict on lowns.
Transactions are faster, they only take a few days whereas in Shanghai it could take 1-2 months.
So Guess Number one.
How much do you believe taxes are in Sanya?
Two
And how many people are getting loans?
and three?
What are the numbers for 2nd hand listings by individuals in the whole market?
1. Taxes are 12.5% of the total transaction fee which is almost always covered by the buyer.
2. literally zero.
Everybody pays 100% cash, it's one of the most mind maddening things I've come across.
I tried to get in, buy, and basically everybody every seller turned me down if we needed a loan.
I didn't believe my friend, so we really went through seeing the whole market, and nobody is going to sell you their property if you need a loan.
Not even individuals. Which brings us to three.
3. there was less than 50 for more then 3 Million Rmb Apartments for sale by individuals.
I talked with a few dudes that had just recently bought places through my friends company, one at 9 Million and one a place more than 28 Million.
The former from HK and the latter from Jilin.
They have been coming to sanya for a long time and they're buying because they can't find hotel suites unless for outragous prices (and even then it's unlikely they find anything, last year the HK guy was even kicked out out of his room, or more accurate not allowed to stay over his original booking because they sold his suite for almost double to the next in line, it was originally already more than 20k rmb a night) during the January and February Months.
So one of my friends calls it a bubble in the making,
thing is, there is still a lot of buyers who are lining up for the most expensive places, but everything is sold out and none of the originally buyers are reselling.
He makes a good buck of pre-reserving at all chances he gets and taking a "let" fee.
So, if there are no loans, and ultrahigh taxes, combined with outragous prices, and more buyers than available places what do you imagine the places future to be like?
My former business partner in Shanghai has opened a Real Estate Agency there last year.
I went to check it out since he's making a killing in transactions and sales and buying himself also.
(of course also to get into the game as well).
I was surprised to what kind of conditions I found over there, during the "quiet season" that is summer.
To have you baffle yourselves too,
maybe you want to play a guessing game, trust me the revelations will be mind boggling and I quite don't understand the underlying meaning of it myself.
Real Estate Prices are as high as Shanghai for some of the better properties in Sanya.
from 30k per square meter to up to 200k for the most lavish penthouse on the phoenix island.
Ownership differs from the rest of the country, it's a landownership with extra taxes but you own the property "more" than in Shanghai for example.
Lown policy is the strictest I have found in all of China, and it's imposed by the sellers developers as well as individuals both are very strict on lowns.
Transactions are faster, they only take a few days whereas in Shanghai it could take 1-2 months.
So Guess Number one.
How much do you believe taxes are in Sanya?
Two
And how many people are getting loans?
and three?
What are the numbers for 2nd hand listings by individuals in the whole market?
1. Taxes are 12.5% of the total transaction fee which is almost always covered by the buyer.
2. literally zero.
Everybody pays 100% cash, it's one of the most mind maddening things I've come across.
I tried to get in, buy, and basically everybody every seller turned me down if we needed a loan.
I didn't believe my friend, so we really went through seeing the whole market, and nobody is going to sell you their property if you need a loan.
Not even individuals. Which brings us to three.
3. there was less than 50 for more then 3 Million Rmb Apartments for sale by individuals.
I talked with a few dudes that had just recently bought places through my friends company, one at 9 Million and one a place more than 28 Million.
The former from HK and the latter from Jilin.
They have been coming to sanya for a long time and they're buying because they can't find hotel suites unless for outragous prices (and even then it's unlikely they find anything, last year the HK guy was even kicked out out of his room, or more accurate not allowed to stay over his original booking because they sold his suite for almost double to the next in line, it was originally already more than 20k rmb a night) during the January and February Months.
So one of my friends calls it a bubble in the making,
thing is, there is still a lot of buyers who are lining up for the most expensive places, but everything is sold out and none of the originally buyers are reselling.
He makes a good buck of pre-reserving at all chances he gets and taking a "let" fee.
So, if there are no loans, and ultrahigh taxes, combined with outragous prices, and more buyers than available places what do you imagine the places future to be like?