Inside China Today

Inside China Today – Friday 26th February

Tropical Hainan has become a popular tourist destination, but at the cost of skyrocketing property prices and a dangerously inflated housing bubble (flickr/Jakob Montrasio).

- China’s property market stagnates
- Huge loans for swine flu treatment
- Shanghai petitioners spend unhappy New Year in Beijing

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China’s property market stagnates

Housing prices in China skyrocketed last year. The five cities with the most risky real estate bubbles were Sanya of Hainan Province, Beijing, Shanghai, Shenzhen, and Hangzhou. Trade experts say around the Chinese New Year period sales plateaued, and the future direction of housing prices is uncertain.

In the past five years, property prices in Haikou of Hainan rose by 20 times. Prices increased in Sanya by 50 times. According to Chinese official statistics, over the same period last year, the price of apartments in 70 major cities nationwide saw an increase of 11%. In addition, Sanya’s increase is at a staggering 31%, which topped the list.

Mr. Jiang is from Zhongtang Real Estate of Sanya. He spoke of the situation on the tropical island province of Hainan (recording):
“Last month the city was declared an international tourist hotspot, which caused a stir in real estate prices. But now that image has faded, housing prices have stabilized and the sales volume is declining. In Sanya, which is dozens of kilometres away, houses in mountainous areas were selling for 7000-8000 Yuan per square metre and new houses were starting at 20,000. This is because of the hype surrounding the ‘International Tourist Island’ designation.”

According to Mr. Jiang, only high end luxury homes or cheap subsidised homes could be built on the island. He said (recording)”
“Those who bought houses in Sanya are all rich people, with extra money they can buy for their retirements. This is not an entrepreneurial city like Shenzhen or Canton, where people start their own businesses or can seek opportunities. In future we will build hotels, high end resorts, commercial properties, golf courses and let the wealthy people come to enjoy in Sanya. High end properties cost over 10 million Yuan and villas costing 20-30 million Yuan will be built here. This is what the government of Sanya hopes people will purchase.”

Mr. Jiang told reporters that, after Sanya’s government adjusted its land policy, the era of high priced housing arrived. For regular people, their only option is to live in subsidised housing.

He said (recording):
The locals can’t afford high end housing. The government has to build welfare housing, but they aren’t of good quality or in good locations. You’re lucky if you can get one. The government will spend some money and build a road for you, put in a supermarket, a hospital, and a school and that’s it.”

In Shanghai and Beijing during New Year, the housing market had stagnated to an even greater extent. Chen Wangsheng from Shanghai’s Tianxin Real Estate Agency told reporters (recording):
“Housing prices in January were worth 12,000 Yuan a square meter. It’s still at that price at present, not much has changed. The volume is also low. Now that it’s Chinese New Year, movement in the housing market won’t be seen again until April. Of course there’s also the issue of location. When there are more buyers out there, the price will increase.”

Mr. Tian of Beijing’s Zhongtian Real Estate agreed saying (recording):
“There is no decline in price, nor is there any increase in price. The sales volume is low as well.”

Experts in the field say the central government’s policy towards the property market may cause major upheavals in the market at an earlier than expected date.

Craig Richter, Xi Wen and Lu Fang of SOH Radio Network.

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Huge loans for swine flu treatment

Swine flu victims in Jilin Province are struggling to cope with the costs of treatment. Some victims have been forced to take out high interest loans to pay expenses. Some have missed out on treatment altogether and have died in their homes. Authorities have blocked all information.

Ms. Lin is a farmer in Jilin Province. Her son is three years old. During the swine flu outbreak in November last year, her son was hospitalized for one month. She can’t afford the medical expenses and has been seeking support from government and media.

Ms. Lin told SOH (recording):
“For regular farmers, including those who grow crops or work as contractors, where can we earn so much money? (It costs me) over 100,000 Yuan. The medicine is very expensive. I tried to get help by talking to radio, to media. When I called a newspaper, they said they weren’t allowed to report such things. It’s restricted. As for government officials, each one I came across told me to speak to someone else. What can I do if they refuse to help? There’s a type of loan where if you borrow ten thousand, you must repay three thousand in interest each year. I have to take out this type of loan.”

Ms Lin’s son had respiratory failure after catching the fever for two days. He was sent to hospital. He’s currently recuperating at home.

Ms Lin said (recording):
“My child developed swine flu symptoms very quickly, in just two days. Even before a definite diagnosis was made, his illness developed to such an extent where he had to use a ventilator. When he was released from hospital, he had use in only a quarter of his lungs; the other three quarters weren’t functional. Later, when he went back for a re-examination, half his lungs had regained function.”

Many patients’ lungs were shown completely white in x-rays. Many suffered respiratory failure in the end. The more serious patients usually passed away. Some people contracted swine flu when they visited hospitals for other reasons.

Ms. Lin told us (recording):
“When a child’s lungs turn all white, it’s called white lungs. He was really scared. That child had leukaemia, and he stayed in hospital for chemo therapy, which killed both his cancer cells and immune cells. His immunity became very weak, and he contracted swine flu in that environment. It’s really difficult for his parents, indeed.”

Chris Thomas, Wang Qian and Xi Wen of SOH Radio Network

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Shanghai petitioners spend unhappy New Year in Beijing

February 14th was for some, Valentine’s Day, for others, the Chinese New Year. But for a dozen appellants from Shanghai, it was a day of bereavement. These dozen appellants braved chilly weather and went to Tiananmen Square. Using homemade videos the appellants shared their messages. They demanded democracy, freedom, and condemned persecution and torture.

When interviewed on February 18th, Ms. Mao Hengfeng said on behalf of the appellants (recording):
“On New Year’s Day we went to Tiananmen Square. There were about twenty of us. By the grace of God, I realized one of my dreams. We petitioned there for democracy, freedom, and human rights. Some of us are homeless, and others cannot go back home. With tears in our eyes, we condemned torture, which we suffered plenty of in prison. And we demanded justice.”

Mao recounted her bitter experience (recording):
“My mother was poisoned by the [Chinese Communist] regime in 2000. I sought justice to no avail. To this day, [her body] is still kept at a funeral parlour in Shanghai. It has been ten years. My heart is broken, especially during the Chinese New Year. So I did not return. I didn’t want to bring my three children down. The government expelled them from school in 2000. A thirteen-year-old young girl has grown into a 23-year-old. They are sad enough. I brought them such harm because of my fights. I feel too ashamed to face my family.”

“I’m scared of being taken to illegal jails if I return, because of the upcoming International Expo. What would happen to us? I know the torture in jail. All those imprisoned may face ill treatment or drug injections at mental hospitals. The totalitarian tyranny brought a lot of trauma to ordinary people. We long for freedom, democracy and human rights.”

Another petitioner, Shen Peilan, also dared not return for fear of imprisonment (recording):
“All petitioners in Shanghai have been locked up, or put under watch at home. During sensitive periods, they would arrest people like us. I came here last month. If I go home I would be locked up, so I dare not return.”

On February 17th, those Shanghai appellants who were forced to spend the New Year in Beijing held a party. The scene was terribly sad. Thinking about their families thousands of miles away and talking about the plight of appellants in Beijing. They condemned local corrupt officials and recounted their personal experiences of persecution. The party ended in tears.

Perry Luo, Fu Ming and Yu Liang of the SOH Radio Network.

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