China News Service, Haikou, December 21 ST Title: Hainan real estate market in 2019: New opportunities are bred in the change.
China News Service reporter Wang Ziqian
2019 is the second year of Hainan’s implementation of the "global purchase restriction" policy. The real estate market is running steadily and declining, and the economy’s dependence on real estate is gradually decreasing.
In April 2018, Hainan issued a series of control policies to strictly control real estate with the determination of "a strong man breaks his wrist". According to official data, after experiencing a sharp decline in 2018, the real estate market continued its downward trend in 2019: real estate development investment, housing sales area and housing sales in the first 11 months decreased by 25.1%, 44.1% and 40.7% year-on-year.
The market chill continues, and Hainan real estate enterprises generally take the defensive. Luo Hao, general manager of Hainan R&F Strategic Development Center, said that the large housing enterprises currently investing in Qiong have generally contracted strategically, and some enterprises have withdrawn from the market.
Under the background of the decline of real estate industry, Hainan is forming new development momentum such as exhibition, health care and finance, and its economic transformation is difficult but effective. According to the analysis of the General Office of Hainan Provincial Bureau of Statistics, the cumulative growth rate of real estate investment in South Africa in the first 11 months turned from negative to positive, with a growth rate of 8.6%.
The household registration and talent policy introduced in Hainan this year triggered speculation on the liberalization of purchase restrictions. Wang Yiwu, dean of Hainan Institute of Modern Management and a professor at Hainan University, said that the policy is aimed at introducing talents for building free trade zones (ports), which still has a high threshold for speculative property buyers. "It will stimulate the market to some extent in the short term, but it will not play a decisive role".
The property market is generally cold, but there are differences in performance in different regions. Haikou city, which is mainly in need, rose against the market. In the first 11 months, sales rose by 35.5% instead of falling, and sales in Sanya city, which represents tourist residential real estate, plummeted by 51.3%.
Since the second half of this year, Hainan Province has successively introduced household registration and talent policies, and Haikou City has also opened the ceiling of housing prices. At the end of the year, housing enterprises promoted price-for-quantity, releasing some rigid demand. Liang Chunfen, a property buyer, said that a property she pre-purchased was snapped up in less than ten minutes when it opened in December. "Several friends around me are ready to buy a house, and the current market price is stable and discounted."
Hainan’s land market is hotter than the property market, and it opened in the fourth quarter. The local media published land transfer information intensively, but the land type has changed from residential land to industrial land and business office land. "This trend is the process of building a free trade zone (port) to be residential, and it is the peak time when land use begins to enter industrial and commercial office land." Wang Lu, secretary general of Haikou Real Estate Association, said.
Another noteworthy thing is that a number of off-island real estate enterprises entered Hainan for the first time against the market. According to the industry, this shows that enterprises have good expectations for the free trade zone (Hong Kong) and believe that the Hainan market is still a "hot land".
The year 2020 is the opening year of the construction of Hainan Free Trade Port. Shen Xiaoming, governor of Hainan, once said that by the end of the first quarter of 2020, the downward pressure on the economy caused by real estate adjustment can be basically released, and Hainan’s economy will enter a benign and rapid development track.
Wang Zhi, director of the real estate market supervision department of the Housing and Urban-Rural Development Department of Hainan Province, said that Hainan will continue to maintain the continuity and stability of real estate control policies, and encourage the development of various shared residential products such as timeshare, online leasing and house sharing.
Luo Hao pointed out that the sales of commercial housing in Hainan will continue to shrink next year, but for housing enterprises, commercial activities will increase, and the housing demand of newly introduced talents will become new opportunities in the market. Wang Yiwu said that housing enterprises should actively shift from simple real estate developers to real estate suppliers, operators and social service providers.
For the changing Hainan property market, the new market environment will test the capabilities of both enterprises and the government. Wang Lu said that for enterprises, it is necessary to realize the transformation from traditional residential development to the development and operation of business offices and industrial parks; For the government, "commercial property management means changing from the needs of people in the past to the needs of industries, which will put forward higher requirements for Hainan’s industrial development". (End)
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