Hainan Real Estate Speculation Bubble
Place low down-payments on multiple properties in Dec 2009, flip the contracts in Jan 2010.
Preparation
Bring massive liquidity to Sanya or Haikou in late 2009. Rumors of the policy are circulating, but the official announcement is pending.
Execution Steps
Use leverage via property reservation deposits. Put down 100k-200k RMB deposits to lock in purchasing rights for dozens of prime coastal properties, signing reservation contracts. On Jan 4, 2010, the policy is officially announced. Speculators from all over China flood Hainan with cash. Prices double from 5,000 RMB/sqm to 10,000+ RMB/sqm in mere days.
Exit Strategy
Ultra-fast flipping! Do not proceed with full mortgages or deed transfers. Instead, in mid-to-late Jan 2010, sell your reservation contracts to latecomer speculators for a hefty premium (adding hundreds of thousands of RMB per unit) through a "name change" fee with the developers. You MUST exit completely before February 2010. Shortly after, the government implemented strict purchase restrictions, freezing the market liquidity for years.