Property investment plays key role in Shanghai, Hainan
Among Chinese places, Shanghai – or perhaps Hainan, depending on your criteria and whom you ask – relies the most on property investment.
China Business News reported that investment in property accounted for about 55 per cent of investment in fixed assets in Shanghai in the year’s first half, ranking it No 1 nationwide.
Beijing followed with 52 per cent, and Hainan with 46 per cent.
However, Hainan topped the table in a report by China Securities Journal. Real estate investment contributed about 36 per cent of the island province’s gross domestic product. The provinces of Guizhou and Yunnan ranked second and third.
Tourism has stimulated the development of the real estate market in Hainan and Yunnan.
More than 100 developers expanded to Hainan after the provincial government kicked off the Hainan International Tourism Island development scheme in 2010. As waterfront sites were lacking in first-tier locations nationwide, it encouraged more developers to acquire plots on the island.
In recent years, many developers have also expanded to Kunming and Xishuangbanna in Yunnan to develop tourism-related property projects.