Hainan shows it may have learned its housing lesson

The latest restrictions on property purchases announced by the local authorities in Hainan province on Sunday are the toughest both nationwide and in the tropical island's own history.

The thresholds set for potential housing buyers are aimed at eliminating any speculation in the island's real estate market after it was announced Hainan would lead the next wave of opening-up.

Earlier this month while celebrating the 30th anniversary of the island being designated as a new province, the central government unveiled plans to build Hainan into a free-trade zone by 2020 and establish a free trade port there by 2025. This sparked a speculation craze that saw housing prices in Hainan skyrocket overnight despite the cooling policies already put in place.