Sanya Property Goes Snap and Crackle, but the Pop Comes Later, Perhaps
I Dreamed a Dream
Mario’s report is a handy overview of the market and the pricing in the various parts of town, and a rehearsal of the argument that surging demand for a place in the sun could keep local property prices rising for a good while to come.
But what’s with all of the frantic building, especially on second-tier sites set well back from the beach? Is it waving or drowning? It wasn’t so long ago that we were hearing predictions of widespread bankruptcies among Chinese property developers.
As this report from Caijing hast it, these risks have not gone away. Interestingly, one of the article’s examples is an Agile Property Holdings project worth 20 billion yuan just up the coast from Sanya City at Clearwater Bay.
Agile, the article claims, was unable to leverage financing for the deal and was forced to sell a project stake instead. It is now said to be under heavy pressure to accelerate the project by several years in order to deliver the return demanded by private equity investors and prevent these investors pulling out.
It’s a story with what sounds like a familiar ring to it. There’s an enormous amount of building going on in and around Sanya at the moment, and supply particularly of second-tier property is surging, but are all of these developers really that bullish about the Sanya property market in the near term or are they just trapped in a frantic race against their debts?
Tags : apartments, bubble, china, dadonghai, economy, property, real estate, rental, sanya, sanya bay, sanya expat
2 Responses to “Sanya Property Goes Snap and Crackle, but the Pop Comes Later, Perhaps”
said on June 12th, 2009 at 6:31 pm
i worked on the clearwater project….i left after finishing the first 18 course….i cannot believe how fast they put up the hotels and highrises and finished out the condos….i have had the privilege to have lived in sanya for 2 years….i wish i had bought property in2004 when i was there first…do you have any insight to give a guy wishing to live there and where the best deal would be to buy a scenic flat
said on June 13th, 2009 at 12:24 pm
Hi Trax,
It depends what you mean by a good deal. There’s cheap property in not very good locations and expensive property in good locations. My preference would probably be for the expensive stuff (like Ban Shan Ban Dao), because I don’t see that many really good locations becoming available. But whether it’s a good deal is another issue. It all really depends on your view on where the market is heading.
It’s true that there ought to be consistent growth in demand, but is that going to be enough to lift developers out of their financial difficulties? I honestly don’t know. We’re actually also in the market for property in Sanya, but we’re sitting it out at the moment.
Mario at http://www.sanyaexpat.com knows more than us about the various developments. You should have a look at his site and also ask him.
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