1993: Hainan Real estate bubble burst

In 1988, Hainan separated from Guangdong Province established Hainan Province, a large number of people came to Hainan gold, these people have pan Shiyi, Feng Lun, Ishadi and other people. After the bubble burst, Hainan's real estate mortgage has been in the devaluation and uncertainty, the country dispatched the inventory group after several years of disposal, only a small amount of maintenance costs recovered.

In 1988, Hainan separated from Guangdong Province established Hainan Province, a large number of people came to Hainan gold, these people have pan Shiyi, Feng Lun, Ishadi and other people.

1988 Real Estate Average price of 1350 yuan/square meters, 1991 is 1400 yuan/square meters, 1992 soared to 5000 yuan/square meters, a growth of 257% than 1991. In the first half of 1993, real estate prices peaked at 7500 yuan/sqm, starting from the second half of 1993 (Go editor: "China Real Estate Market Yearbook (1996)" on page 194th). According to statistics, Haikou Land price of 1991 years up to 980,000 yuan/MU, to 1993 to the highest level of 6.8 million yuan/MU, and to the beginning of 1996 fell to about 1 million yuan/Mu, down to 85%, basically down to the 1991 level.

Real estate bubble period, with the capital of the four big banks, including large-scale state-owned enterprises and rural enterprises and private capital of a large number of capital through various channels into the real estate market, then circulated "to make money, to Hainan, to make a fortune, fry the floor," The real estate bubble burst into collapse after a sharp expansion. Subsequently, the vast majority of property developers became the debtors of the banks, who left their money to themselves, leaving the real estate at a high price to the bank. Eventually, with the collapse of the Hainan Development Bank, the bank became the largest developer in Hainan.

At that time, Hainan city population more than 1 million, real estate companies on the 1.3W, an average of 80 people a real estate company, all real estate in the transaction, all real estate projects are also under construction, who do not know who to live in the building, sell real estate people do not plan to live in Hainan, from the 1 floor signed the real estate sell buy contract, to 6 floor Pan Shiyi Such people in which, August 92 pan Shiyi and other people smelling the taste of the strange, evacuated from Hainan to Beijing development, 93 bubble burst! (In a word, Geely car Mister Li this year, lost 30 million, from some vowed not to touch the property)

1.3W Real Estate Company closed 95%, in Hainan has three major landscapes "Tianya, cape, rotten Tail building", Pan Shiyi and other million-way team, also because of the Hainan bubble turned them into a real estate tycoon, Feng Lun Wantong Real Estate Board chairman, Pan Shiyi left Wantong, through the offshore registration method to set up a "foreign" company Soho, Ishadi left Wantong to set up a sunny property. Beijing International Trade Edge Wantong Plaza, Sunshine 100,soho modern city are their projects.

After the bubble burst, Hainan's real estate mortgage has been in the devaluation and uncertainty, the country dispatched the inventory group after several years of disposal, only a small amount of maintenance costs recovered. Because many projects just dug a big hole, the bank to get the mortgage floor is basically castles in the castle, more painful is that these concepts of the floor most have been mortgaged several times, different banks in determining their creditors status, sad to find that the "big pit" still owes the construction team amazing cushion funds, It is not enough to pay for the project even if the whole item is turned into cash. Diving property prices and asymmetric information continues to dominate the new round of unbalanced resource ownership, the real estate bubble in the invisible to the socially disadvantaged groups of the deprivation, to the community left a greater trauma. Investors who profited from the real estate bubble walked away with money, leaving banks and asset managers with a tangle of debt disputes, in addition to cheap "rotten-tailed" buildings.