The Sanya Real Estate Review II

For Sale Buy Now! Brand new 110 sq meter luxury ocean view one bathroom condo apartments located in Phase III consisting of eight 31 story tower buildings.

Resident Plan of Surrounding Area: Total of ONLY 1439 other new luxury ocean view condo apartments in this phase plus an additional 800 other luxury condos already built in Phase I and Phase II, managed by the world known CB Richard Ellis property group.

Location: Ban Shan Ban Dao, Sanya, Hainan, Lu Hui Tou Peninsula, includes new golf course, Banyan Tree Resort, Intercontinental Resort, and two additional unnamed resorts under construction.

Several Units Available your choice from the 24th - 31st floor in Building #3 and Building #4 overlooking Xiao Dong Hai beach including the Intercontinental Resort. All other units SOLD OUT.

Your Luxury Condo Apartment Price (conveniently converted to various currencies)

RMB 3,200,000
USD $468,000
EUR $319,000
SING $663,000

Other Pertinent Information To Make You Really Want To Buy This Piece of Real Estate As Soon As Possible:

Pay close attention to this one: Directly between your new luxury 110sqm condo apartment located in Building #3 or #4 for which you just paid close to half a million USD, the main property developer will also construct Building #1 and #2, side by side, also 31 stories tall, directly between your building and the beach, blocking over 90% of your view of Xiao Dong Hai beach below.

So, that's close half a million US bucks for an ocean view today which you know in advance in going to get blocked tomorrow! Yea, where's my checkbook honey!! How can I pass up that deal!! The salesman will remind you, without cracking a smile, that you still have a full view of the eastern coastal ocean 1.2 km away on the other side of the peninsula where the Banyan Tree Resort is located.

In Phase I of this development, there is a 3rd floor apartment available for sale at 13,000rmb/psqm. Total asking price: 1,800,000rmb / USD $265,000 = 13,000rmb/psqm, only slightly higher than the purchase price two years ago.

Curious: So if you could buy a Phase I apartment on the 3rd floor for 13,000 psqm, then wouldn't a 24th floor apt in the Phase I building go for around 300rmb/per floor more? That equals 19,300rmb/psqm. So then why would you pay the 50% higher 28,000rmb/psqm for a 24th floor unit in Phase III? In fact, the Phase I building has only 70 units, making it feel much more "exclusive" than the eight Phase II buildings with close to 200 units each. Oh, the answer, ITS already that two year older stuff!! Icky Icky, its not the NEW building!!

I almost forgot. The final reason you really need to hurry:

Before they are all sold at this low price!

Otherwise called "appreciation expectation". Language lesson: this is business analyst adult corporate and journalism language for finding the next sucker who ends up holding the bag like last year back in the United States real estate crash. Next year sometime, Building #1 and #2 will be asking 35,000rmb PLUS psqm and are expected to be completed in the next three years according to the developer. Never mind that Phase II prices were 18,000rmb/psqm and Phase I prices were 13,000rmb/psqm two years earlier with a unit for sale in Phase I right now at 13,000rmb/psqm. Admittedly, this is the price of a motivated seller but isn't that what also defines a true market price? A selling price at the initial offer price two years earlier is certainly not a foreclosure sale price!

Contact Us Here To Cast Your Vote Now!

Please cast your vote on these three quick questions:

1. YES or NO - If you had several million rmb cash in your bank account, would you buy this luxury condo apt today at this price? Since the buildings, I am told, are 90% sold out AT THESE PRICES, we want your opinion.

2. YES or NO - Do you believe that in three years the price of this Ban Shan Ban Dao condo apt will be the same, higher or lower?

3. YES or NO - Do you believe that sometime in the next 6 to 24 months there will be another financial crisis or some sort in the stock markets including a bursting of this real estate property price bubble in Sanya?

It is easy and quick to take just a moment and reply right now. After 30 days, We will tally the results of your answers and post the results. And thank you!

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Contact Us Here To Cast Your Vote Now!

The Background Analysis and Red Zone Bubble Warning

Asking prices for the newer oceanfront apartments along Sanya Bay, Dadonghai, Lu Hui Tou are fast approaching and beyond 30,000rmb psqm. This price level is way too high, way too soon. Danger Zone. Red Zone. Flashing Lights. Onset of Hallucinations and Altitude Sickness. In this section we include a location by location rundown.

The Sanya City Area Along The Rivers

Briefly regarding new apartment complexes located an average of 1km off the beach along the Sanya river areas, asking prices are now hovering around 9000 psqm. The same unit asking prices several months earlier was 6-7000rmb psqm. This includes San Yong Milky Way along the Lin Chun River and Zhang Zi Yi's Phoenix Watertown development further west exactly 1.5km up from the beachfront on Jin Ji Ling Lu.

Liquidity Feeds the Speculative Frenzy

The United States and Chinese governments are in print money stimulus mode big time. Problem is that an estimated 50% of the money is not being used to create real growth: the money is being used to fuel this speculative rise in stocks and real estate. The Chinese stock market had rose 100% from March to August, in comparison the U.S. S&P500 which has gone up around 40%. Considering that corporate earning have PLUNGED to levels worse than since the Great Depression, this is a scary picture for the average Joe 'n Jane who don't know how to navigate those treacherous water trying to make money in the stock market. Ditto for the speculative gambling going on in the real estate market particularly in China.

If the U.S. stock market is severely overvalued, with historically outrageous PE ratios clearly showing it is, then the Chinese stock market is quite simply a bigger gambling mecca than Macau and Vegas combined...these markets have become a whore's den of rich man's thievery and the speculative appreciation of prices in China's real estate market are very much part of it. Nothing, by the way, has been done to reign in the abuses of the derivatives markets. Heaven help us when the next surprise comes along.

Here are some harsh words from former Morgan Stanley Analyst Andy Xie:

“Chinese asset markets have become a giant Ponzi scheme... Chinese stock and property markets have bubbled up again. It was fueled by bank lending and inflation fear. I think that Chinese stocks and properties are 50-100% overvalued. The odds are that both will adjust in the fourth quarter. The prices are supported by appreciation expectation. As more people and liquidity are sucked in, the resulting surging prices validate the expectation, which prompts more people to join the party. This sort of bubble ends when there isn’t enough liquidity to feed the beast.”

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