Hainan shift gears: real estate tide retreat free trade zone to be emerging, grabbing people and investment in two-pronged approach

Hainan real estate marketing circle, the popularity of such an ironclad law - dry marketing but 40. Zhaopeng just over this age group. "Those of us who came from outside the island, really can not top, then only to go."

He has witnessed the sadness of this wave of real estate turmoil on the island. Over the past decade, whether it is Haikou's Meilan, or Sanya's Phoenix, the most impressive thing is the overwhelming number of real estate advertisements. However, in the first three quarters of this year, Hainan province's real estate development investment fell 28.1 percent year-on-year; housing sales fell 44.6 percent year-on-year.

After the "breakthrough", Hainan's GDP in the first three quarters was 386.579 billion yuan, a year-on-year growth of 5.5 percent, losing the national average of 6.2 percent.

In fact, Hainan's traditional industries, agriculture, industry, tourism, etc., the growth rate compared to the previous, have appeared different degrees of decline.

With China's only tropical region, Hainan has been designated as a pilot free trade zone, free trade port with Chinese characteristics, seems to have a prosperous future, but the story of the arrival of the future on the way to the people from all walks of life still have mixed feelings.

Perhaps this is the way to go.

Innovating Hainan

At 8:40 a.m. on Oct. 31, in the multi-function hall of the second phase of the Hainan Provincial Museum, six cameras were lined up, and the lecture hall, which can accommodate nearly 200 people, was filled with journalists who had come from all over the world.

A press conference on institutional innovation cases in China (Hainan) Pilot Free Trade Zone is being held. In just over 20 minutes, 10 cases of institutional innovation were presented one by one on the big screen. These are carefully selected results from a library of nearly 300 cases.

From "432.6 billion tons" to "980 billion tons", Haiken Group's Hainan Rubber Group (hereinafter referred to as "Hainan Rubber") before and after 7 years, production Indicators experienced a "free-fall decline".

Natural rubber is Hainan's largest traditional agriculture, Hainan Rubber is the largest state-owned enterprises in Hainan Province, listed companies, but the cost of Hainan Rubber than Southeast Asia, the first few years of the annual loss of about 1 billion yuan.

The plight of Hainan Rubber is the epitome of Hainan's primary industry.

However, Hainan Rubber has waded through the "shoals", last year, the company turned a loss into a profit of 229 million yuan; the first half of this year's revenue is 5.936 billion yuan, an increase of 13.21%.

Its turnaround case was amplified to the above news conference, based on the market-oriented performance management as the basis of the reform and innovation mechanism, become the local traditional industries to save the "straw".

The old wave faded

The property market turnover slashed, Zhaopeng around 70% of the peers have disappeared.

In the past, he must do every day, is the end of the day after the first time to receive sales statements, compared to the sales data of various properties; now? No need to see, see also "duck eggs".

Zhao Peng was transferred to Hainan project in 2004, a stay is 15 years. Today, he is a local real estate marketing head of Hainan. "You go to the Esplanade drive around, from Danzhou to Yangpu, the road on both sides of the single property on more than 10. The last two months, the sales performance of these projects, either 0 sets, or 1 set. Wenchang City, there is a TOP6 real estate enterprise development project, in May to get the pre-sale certificate, so far also sold less than 20 sets."

Since 2016, the only tropical island in China, accompanied by the construction of the free trade zone (port), and the whole region to limit the purchase policy. A year and a half has passed, and the property market has gone from madness to depression.

Before 2018, real estate had contributed nearly "half of Hainan's GDP". "Linhai those turnover big county, now the record area are calculated by thousands of square meters. Past practice, a separate property sales basically start with 10,000 square meters." Zhaopeng calculated an account, now a county in Hainan sold houses, not as much as a project before.

Shrinking sales area means fewer and fewer customers. Zhaopeng from the operation of Hainan's first project, contact with 95% of the buyers are foreign customers. 2010, Hainan's further economic development, one after another, foreign professional managers run to settle here - these people should buy a house early to buy, and now can have the qualification to buy a house in Hainan is very small.

Lori's feelings are more profound. She came to Hainan 20 years ago to go to university and settled here after graduation. She's a typical saleswoman: well-dressed, articulate and, when she gets serious, presentable: she's a natural fanatic about houses, and when she has a bit of cash, she puts it into real estate.

Between 2016 and 2017, Lori enjoyed a wave of dividends from an industry high. At the time, she worked as a sales consultant in a property that played on the concept of health and wellness, with a steady stream of customers coming from the northeast, and her considerable income had made it easy for her to cope with a mortgage loan for five suites.

The good times didn't last long, and after Hainan's region-wide purchase restrictions "struck", the five houses she purchased almost became "hot potatoes".

Turning to Haikou, a thousand acres of fresh demand plate Luo Li, at the moment is "guiding" an outsider, "settlement is simple, we have a lot of new Hainanese people buy this plate, the proportion of foreigners and locals is about half of each."

At 2 o'clock in the afternoon, there were only two groups of customers in the large sales center, and Luo Li made every effort.

The new wind is blowing

Haikou Fuxing City Internet Innovation and Entrepreneurship Park is a key innovation and entrepreneurship base in Hainan Province. Ma Liang's daily work is almost always centered around the investment operation of this park.

He is the deputy general manager of the investment company of this park, "Hainan has built the FTZ for more than a year, the number of enterprises registered in the park has increased by one to two hundred at once. 2017 tax revenue of the park only reached 50 to 60 million yuan, and last year it has been mentioned as 420 million yuan, and in the first nine months of this year it has been 930 million yuan."

Once upon a time, the majority of those who visited the park for inspection were smaller Internet companies, but now there are about 10-20 larger and broader businesses coming to the door for research every week. The change stems from the adjustment of the alignment of these protagonists in the park.

"After April last year, Hainan, from the province to the park, have begun to strengthen the introduction of large enterprises, promoting many of China's top 100 Internet companies to move in." Ma Liang said.

The latest one to move in is ByteDance. In November last year, Ma Liang accompanied relevant leaders of Haikou City to Beijing to visit Zhang Yiming, founder of ByteDance, who returned to Haikou a month later.

After the National Day, a group of Internet business founders, including 58 Tongcheng CEO Yao Jinbo, Mango TV president Cai Huaijun, flash co-founder Yu Hongjian, Focus Media partner Ding Xiaojing, and Quick Look Comics founder and CEO Annie Chen, also rushed to the Hainan FTZ.

In the past, real estate was a dominant industry. In April last year, the release of the "China *** Central State Council on supporting Hainan to comprehensively deepen the reform and opening up of the guiding opinions", the Internet industry is listed as one of the top ten industries to be developed in Hainan in the future. In the first three quarters, investment in information transmission, software and information technology services grew by 5.9 percent on the premise that investment in fixed assets in Hainan (excluding farmers) fell by 16.3 percent year-on-year.

All the way along Jiangdong Avenue in Haikou City, a large area of bare yellow land on both sides, some of the large machinery has entered the field, dusty; more is surrounded by a circle of blue fences densely packed.

In June 2018, Hainan announced the launch of the planning and construction of Haikou Jiangdong New District as a key pioneer area for the construction of the Hainan Pilot Free Trade Zone.

At the end of September, Haikou Mayor Ding Hui publicly said that Jiangdong New District is laid out in accordance with six industrial parks, such as the business headquarters area, financial district, airside economic zone, Hainan National Convention and Exhibition Area, design park, science and education park, and 32 intended landing projects are being negotiated in full swing.

Jiangdong Avenue and Xingyang Avenue intersection, a gold-colored, uniquely shaped building and 88-meter-high sightseeing tower towering side by side, which is the Jiangdong New District Exhibition Center. It is not yet open to the public, but a security guard at the site told the Economic Observer, "Every day there are large groups of inspectors coming from Beijing, Hong Kong, Taiwan or abroad, who are led in the name of enterprises, sometimes as many as 200 people."

The sightseeing tower has become an excellent observation point for these companies to see the whole area from afar and pick out land plots. A person familiar with the matter said that the land currently granted in Jiangdong New Area costs at least more than 1 million yuan per mu. The government has even set strict barriers to entry -- companies must be among the world's top 500 and must contribute 10 billion yuan in output annually.

The battle of the people

Wang Zhong always mentions in conversation with his friends that he didn't expect to cut his teeth in the tourism industry. He has been rooted here for more than 20 years, since 1996, when he went down to Hainan.

Before that, Wang Zhong's main identity was the founder of Hainan Sequoia Science and Technology Industry Co., a high-tech enterprise engaged in green building.

Four years ago, Hainan Province proposed to promote tourism development and asked each department to report special tourism projects. The Department of Agriculture set its direction on an Internet agriculture town and formed a project working group, in which Wang Zhong, as one of the private entrepreneurs, was involved.

A year later, Haikou City, Shishan Town, to host the Volcano Bicycle Culture Festival, Wang Zhong thought of a "people's cavalry camp" tourism project.

But the project encountered big problems in the first year. From building a traditional bicycle station, to cooperate with various travel agencies in Hainan, to lock the corporate group building, he changed three times before and after, did not go through.

"I have this tourism project, the target market is not the island people, it must be local people. Hainan's tourism pattern is that 70% of guests go directly to Sanya, only 30% stay in Haikou." Wang Zhong originally thought Sanya tourism was more prosperous.

The facts are very different. At an industry exchange meeting, peers complained that Sanya was harder to do. Because the population is smaller.

Now, Wang Zhong is trying to make a breakthrough in the positioning of sports tourism, but the road ahead is long. So far this year, his revenue in the tourism segment has fallen at least 40 percent compared with last year.

The whole of Hainan, the tourism industry trend is not good. In the first three quarters, the province received a total of 56,006,700 tourists, an increase of 7.1% year-on-year; to achieve tourism revenue of 70.763 billion yuan, an increase of 10.2% year-on-year. These two growth rates, compared with the same period last year consistent decline.

Wang Zhong is trying to find ways to attract customers. He said, on the one hand, Hainan in the cultural excavation is not deep enough; on the other hand, more and more countries to realize visa-free or visa-on-arrival, Bali, Southeast Asia tourism, whether it is the cost of travel or the natural scenery, not far from Hainan.

Lori is also digging her way into a "customer defense war". She was about to bring customers to visit the model room, a twist of the head of the effort, a colleague came over "cut off".

The same urgency applies to startups. Wang Zhong's Sequoia Science and Technology, the most money in the year, Wang Zhong for Sequoia Science and Technology R & D investment of nearly 8 million yuan, of which the cost of talent accounted for about 70%, the more difficult is that you get money can not be recruited.

"Hainan itself is a lack of well-known colleges and universities, Hainan University to train most of the talents after graduation choose to go north, so the local high-tech enterprises face a lot of recruitment difficulties." A technical director of Hainan Nanqi Network Technology Co., Ltd. told the Economic Observer that at present, they are in urgent need of talents involved in big data, artificial intelligence AI, blockchain and other technological applications, Hainan's local is almost 0.

October 24, a new round of reform of the household registration system in Hainan Province across the board, two new measures are striking: one is the basic elimination of the province (in addition to the Sansha, hereinafter referred to as the same) settlement Restrictions; the second is the abolition of the distinction between the nature of agricultural and non-agricultural household registration, unified registration as a resident household.

But Ma Liang asked, "Will the real talent come in for a little government subsidy?

"Of course not, they value the opportunity more."

Sun Dahai, spokesman for the Hainan Provincial Party Committee, deputy secretary-general of the provincial party committee and executive deputy director of the provincial party committee's Deep Reform Office (FTO), said that recently, domestic and foreign experts have gathered to discuss how to build a free trade zone (port); the relevant ministries and commissions of the central government are pressing ahead with the introduction of the free trade port policy, and that "in the next 2-3 months there should be a wave after wave of good news. "