On the road from Guantang to Haikou, the provincial capital of Hainan, stand advertising hoardings that might one day serve as an epitaph for the property mania that the tropical island has witnessed in the past couple of years. “Flats for Rmb7,980 [$1,231] per square metre – refunds [available] without giving any reason,” one says.
This tactic of a developer offering buyers their money back without conditions may be unusual, but a nearby mini-township, complete with a hospital, that is deserted offers a clue to how hard it is to find buyers in this area.
Wang Li, a property agent in Haikou, explains that potential buyers and developers are involved in a standoff in the city. “There are very few clients who want to buy . . . at the high rate of Rmb11,000 to Rmb12,000 per sq m. There is no market, but developers hold on to their stock of flats,” Ms Wang says.