Through a Second Glance at Chinese Hawaii: Is Hainan housing market in a forever tropical Paradise?

Abstract: Hainan province, as the only tropical region in China, suffered a housing bubble in the 1990s when the bubble burst. This was the first case of a bubble in the Chinese housing market. However, in the latest decade, Hainan housing market has become again heated up; the price of housing keeps increasing and new record housing prices have been reached. Is the housing bubble back again to this tropical paradise or is the high price of housing grounded in the changes of economic fundamentals? Through the measures of housing bubbles and analysis of economic fundamentals for Hainan housing prices, this thesis aims to explore the Hainan housing market from the 1990s to the present time in order to find out the answers to the research questions and to draw conclusions.