The anticipated completion of Ocean Flower Island in 2020 is yet another example of how China never fails to surprise us. The luxury island a man-made archipelago will present 58 hotels which includes one rated 7 stars, large shopping malls, thousands of apartments, gardens, 28 museums and so much more. The project itself has received an investment total of ¥160 billion (RMB/$24 billion USD) to date.
The island which is already attracting interest from property developers and investors will be a great centre for growth for the Chinese economy, expanding on their already large luxury tourism sector.
Earlier in the week, it was reported that China’s GDP grew 6.8 per cent in the third quarter, ahead of Beijing’s full-year target. The rejuvenation in the economy has to thank projects like Ocean Flower Island and confident investors. Housing prices and construction revived from a slump in 2014-15, boosting overall business investment and pushing further demand for China’s huge manufacturing sector.
The property sector has been given a boost. Powered mostly by Beijing, 38 per cent of all bank loans issued in the 12 months to August were towards home mortgages and the local governments purchased 18 per cent of all residential floor space sold in 2016, in an improved effort to provide affordable housing, according to estimates by E-House China Research Institute. The Chinese residential property market is arguably the most important asset market in the world. It will therefore be interesting to see what more China has to offer.
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