Sanya expected to face property sales slump as supply increases
Sanya has always been a popular city for property investors and short-term housing rentals have been on the rise during this winter season.
Statistics show that the average price for rental housing cost 100.42 yuan per month/sqm in January 2014, an 18.84% increase year-on-year, topping Chinese cities with the highest rent prices.
However, the booming rental market did not bring a rise on house trade volumes.
Many housing agents admitted home sales this year are not as good as previous years.
The analysts said the reason for the shrinking property market is that there is rising supply.
Under the background of construction of the International Tourism Island, developers have cashed in on Sanya by putting more new homes on the market.
On the supply side, there are huge housing reserves. In Sanya Bay, the house vacancy rate reaches as high as 80%. The high vacancy rate is also believed to be a major force behind the rising house prices, which is leading toward a wait-and-see situation.