Banshanbandao, a property complex in Hainan’s Sanya Luhuitou peninsula, topped Sanya’s property sales in the first half of the year with 3.5 billion yuan (US$570 million), showing hot sales at a time when China’s property market overall is considered stagnant, Shanghai’s China Business News reports.
Since its first stage of development announced in late 2007, Banshanbandao has ranked among the top three in property sales in the Hainan resort city. As of June 2014, the accumulated sales in the project reached about 20 billion yuan (US$3.25 billion).
The earliest development of the Luhuitou peninsula can be traced back to about 20 years ago, when it was a barren piece of land after Hainan’s property bubble burst in the early 1990s.
It was not until 2004, when financial institutions such as the People’s Bank of China involved in unloading non-performing assets by introducing companies including state-run China Aidi Real Estate Development Co, that the peninsula returned to the development stage.
After nearly 20 years of development, Yan Qi, a mysterious figure, has gradually merged several enterprises to control thousands of acres of land on the peninsula via capital operations.
In August 1988, when Hainan was detached from Guangdong to become China’s 31st province, the nation’s investors had flooded into the new province to speculate in property. In 1992, Hainan’s property investment reached 8.7 billion yuan (US$1.41 billion), accounting for half of the province’s total fixed asset investments. Haikou’s land prices surged to more than 6 million yuan (US$975,000) an acre in 1992 from just over 100,000 yuan (US$16,300) in 1991.
Statistics showed that in 1988, Hainan’s average property prices were 1,350 yuan (US$220) per square meter, then surged to 7,500 yuan (US$1,220)/square meter in 1993 at its peak.
In June 1992, Hainan’s provincial government approved the development of 1,713 acres of land on Luhuitou peninsula to boost tourism. However, in 1993 the State Council unveiled 16 powerful macro control measures to tighten money supply, thus leading to an immediate bursting of the property bubble.
Hainan swiftly became one of the most heavily hit areas in the nation’s property market at that time, with more than 600 buildings almost vacant and vacant land reaching 18,834 hectares.
In November 2004, China Aidi, a state-run property developer founded in 1992, took control of the management of Luhuitou Co, which had been in charge of the development of the peninsula, for just 100 million yuan (US$16.3 million), thus resuming the development of the peninsula.
China Aidi later invested more than 800 million yuan (US$130 million) in the project and later transferred the ownership to Sanya Aidi, which is controlled by Yan.
SOURCE: Visit Hainan

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