A man made island of sail-shaped skyscrapers surrounded by tropical seas was billed to be China’s Dubai. But unlike Dubai, Phoenix Island has not been able to rise from the ashes. Property on Phoenix Island is considered a bad investment in light of the recent economic downturn.

With China’s unstable economy proving to be crippling for the island, the streets lie empty with only cleaners in orange uniforms milling around. Although here and there, a short line of parked Porsche’s indicates that some people might actually be living on the Island.

Apartments that were selling for 150 000 Yuan (R200 000) per square metre are now being sold for 70 000 Yuan (R100 000) per square metre, as owners search for liquidity.

A local estate agent, Sun Zhe, said:

Whether it’s toys or clothes, the export market is bad… property owners need capital quickly, and want to sell their apartments right away. They are really feeling the effect of the financial crisis.

This scene is a far cry from the initial launch of the island, when eager buyers camped out in tents on the city streets after the Chinese government flooded the economy with credit. But with the latest clamp on these policy credits, the value of properties have also been cut down.

[Source: Business Insider]