On Hainan Tourism Real Estate

Why are there no big businessmen in Hainan's real estate industry?

( 2005-0 1- 17 09: 1 1: 14)

Winter in Hainan generally comes late, but Hainan real estate feels the chill early. Since the summer of 2004, developers generally feel that houses are not easy to sell, so that when a property is quoted with a basic selling price, the industry will habitually question whether it is true or not.

Hainan's real estate needs consolidation, but how to consolidate has become a difficult problem in front of Hainan's real estate market. "Securities Herald" reporter on "How to get to Hainan real estate in 2005?" Professor Li Chengyi, a researcher at Hainan Tourism Research Institute, was interviewed for further discussion.

Reporter: Since the second half of last year, some developers in Hainan feel that their houses are not easy to sell. What's your reason?

Li (researcher, Hainan Tourism Research Institute): That's true. I think the most fundamental reason is the outdated way of thinking. Including real estate developers and relevant government functional departments, the way of thinking is in urgent need of change. At present, most of Hainan are small and medium-sized real estate developers. They have taken a small piece of land and developed a small project, paying attention to the immediate things and having a close eye. Hainan's real estate industry lacks large-scale real estate developers who look at the world, keep up with the pace of the times and consider for the long term.

Reporter: Now that we have entered 2005, I have come into contact with some developers who want to seek a breakthrough in this year, but they can't find a way. What do you think of Hainan's real estate market in 2005?

Li: First of all, Hainan has the premise of a breakthrough. The premise is that China needs Hainan, which is valuable to China. In the past, due to poor economic conditions, people didn't have the money to come to Hainan, and they wouldn't want to come to Hainan for a holiday. As China enters the new century, wealth is gathering, and the middle class has risen and has a certain scale. Vacation has become a way of life for these people. Hainan has become a holiday resort to China just as Florida is to the United States.

Personally, it is a breakthrough in Hainan's real estate industry to combine the holidays of foreigners with the real estate in Hainan. But unfortunately, Haikou's real estate products lack characteristics and can be put anywhere. At present, Haikou's real estate products rarely serve festivals.

Reporter: You have pointed out a way for Hainan's real estate development, but how to get there?

Li: To seek a breakthrough, we need to solve two problems. One is what Hainan's real estate should look like and the other is how to do it.

First answer what Hainan's real estate should be like. As mentioned above, I think it should be a healthy holiday and leisure property. This type of property is different from ordinary property. The so-called normal real estate is a real estate project built in general cities to solve the housing problem. Its main function is to make basic life and work convenient. Most of the projects currently developed in Hainan belong to normal real estate, but have you ever thought that mainlanders come to Hainan to buy houses for the convenience of basic life and work? They came on holiday. Speaking of basic life, the community, transportation and supporting facilities here are not as good as many cities in the mainland, and they will not come to Hainan to find a job.

Reporter: Hainan also has a climate, the sea. ...

Li: Because of this, some houses are sold, but they can't be sold. The next step is to discuss how to do it.

First, we must establish a brand. What brand is Hainan's real estate as a whole? It can't be called "Hainan Real Estate" or "tourism real estate" any more. It's rotten and even distorted its original meaning. Hainan now wants to play a card in the name of a province, which is "holiday real estate". I haven't decided the name of this card yet.

Second, we must change the basic state of property. Holiday-style real estate should not be arranged in dense high-rise buildings like other cities in the mainland. What is it like? You can learn from holiday hotels and add some holiday elements, such as large balconies and armchairs. In addition, in order to take a holiday, the living environment, apartment type and landscape should be changed.

Third, the mode of operation should be changed. For example, a retired old man in Northeast China wants to buy a house in Hainan, but only wants to buy the property right of 10 years, because it is useless to buy too much, so the real estate agent should be flexible.

Fourth, the service should be changed. The first thing to change is the function of the service. At present, the services provided by residential properties in Hainan are normal real estate services, which are not better than those in other places. What is the service of holiday real estate? Close to the hotel, more active, more affectionate and richer. Provide cleaning, cooking, laundry and other services for the owners. Secondly, the management of services should be changed, and the management of hotels can be transferred to the management of holiday-style real estate.

Fifth, the marketing methods should be changed. The target market of marketing needs to be positioned accurately, the selling points need to be more clearly stated, the customers need to be further subdivided, and the means, contents and methods of marketing need to be changed.

Sixth, social support payments should be changed. Social support is divided into two aspects, soft support and hard support. Hainan has done a good job in soft matching. Because there are many immigrants in Hainan and they are not exclusive, it will be very kind to come here for a holiday. But it's too bad in hard matching. Mainlanders go to Hainan for a holiday to find happiness, but only when they buy a house do they find life inconvenient, especially in Sanya, where hospitals and entertainment are scarce and even shopping is inconvenient. It's better to stay in the mainland for the unhappiness caused by so much inconvenience. To solve the problems of these non-real estate developers, the government should be aware of the higher demand for living facilities in holiday-type real estate and build facilities for this higher demand.

Reporter: At present, there are many normal properties in Haikou. Perhaps how to digest them is a topic of concern to many real estate developers. Any suggestions?

Li: Holiday-style real estate is the future development trend. As for the existing normal commercial housing, let's accept the market test.