Chinese bidders buy three overseas islands via auction

A businessman in Zhejiang province bought the island in Fiji for 5 million yuan

March 06, 2015 09:40 am | Updated 10:42 am IST - Beijing

The island in Fiji was sold with 99-year rental property rights while the others were sold freehold. Photo for representative purpose only.

The island in Fiji was sold with 99-year rental property rights while the others were sold freehold. Photo for representative purpose only.

In an unusual auction, four islands in Fiji, Greece, Britain and Canada were put up for sale on China’s largest online shopping platform Taobao with three of them being sold within 12 hours. Any Chinese citizen who put up a 1,000 yuan ($159) deposit was qualified to bid.

Starting at 10 am (local time) on Wednesday, at least 48 bidders took part in the auction. Except for the UK property, which had a starting price of 4 million yuan and was not sold, the other three islands had a starting price of only 1 yuan.

The island in Fiji was sold with 99-year rental property rights while the others were sold freehold, state—run China Daily reported. When the auction ended at 10 pm on Wednesday, a construction magnate in Yunnan province had bought the islands in Greece and Canada for 4.8 million yuan and 1.7 million yuan, respectively.

A businessman in Zhejiang province bought the island in Fiji for 5 million yuan, according to Beijing—based Ilongterm, the real estate firm that held the auction.

“We chose to work with Taobao as a strategic partner, because it is undoubtedly the most influential online shopping platform in China right now. Our bidders in this auction were long—time users of Taobao who have spent about 10 million yuan on it” so far, Ilongterm said.

Ilongterm will take the winning bidders to their islands for on—site inspections and the completion of procedures such as paying taxes, commissions and legal expenses.

The company will also offer more overseas properties by auction on Taobao later this month and in May.

Taobao started auctions for overseas properties on December 12.

“We are catering to rising demand for overseas properties among these groups. We’re sure to offer more such projects in the future,” said Taobao in a written reply.

According to Lin Dong, founder of the China Island Owners Association, wealthy Chinese have shown growing interest in overseas islands in recent years. Islands in China come with many restrictions on their use and just 50 years of ownership. But most overseas islands are sold freehold.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.