China’s tropical Hainan is all sand, sea… and property curbs

Bloomberg

China’s tropical island of Hainan is basking in the glow of a raft of favorable economic policies, some unveiled by none other than President Xi Jinping.
But, now, it’s also notable for something else: China’s first province-wide home-buying restrictions, after previous curbs were expanded in an announcement. To get a sense of the scale, that’s an area a bit bigger than Belgium. The intent is to curb speculative investors attracted by the policy goodies.
Chinese developers with big exposures to the island — measured as a percentage of their total gross floor area — slumped on Monday. Agile Group Holdings Ltd. fell 6 percent. “The restrictions are more rigorous than expected, and they come with immediate effect,” said Yan Yuejin, a Shanghai-based analyst at property data and consulting firm China Real Estate Information Corp.
The latest curbs include requirements for non-residents or new residents to have two-year work records to make home purchases.