China's Ocean Flower Island: A Monument to Failed Ambition
The story of Ocean Flower Island reads like a modern parable of excess. This artificial archipelago in the South China Sea was meant to be China's answer to Dubai. Instead, it became a stark reminder of a property bubble that burst.
A Vision Inspired by Dubai, Doomed by Debt
Evergrande, once China's largest property developer, conceived Ocean Flower Island. The company poured approximately $12 billion into the project. Most of this money came from borrowed funds. Xu Jiayin, Evergrande's founder, envisioned a massive entertainment and residential hub. He sketched the design himself during a vacation.
The plan was grand. It called for housing for 200,000 people. The islands would form the shape of a flower. They would host shopping malls, theme parks, and conference centers. It was a bet on perpetual growth.
The Collapse of a Giant
In 2021, Evergrande collapsed under a mountain of debt exceeding $300 billion. This event shattered confidence in China's real estate sector. The company's downfall left Ocean Flower Island in limbo. Only 60,000 apartments were completed and handed over. Dozens of other high-rise blocks stand unfinished.
Today, the site presents a surreal landscape. A gigantic shopping mall contains no shops. A theme park sees no visitors. Artificial beaches are deemed too dangerous for swimming. Rainwater floods empty concrete foundations, turning them into fishing holes.
A Government's Dilemma
The municipal government of Danzhou now controls much of the island. Officials are struggling to decide its fate. They continue to market it as a unique lifestyle concept. Yet, the reality is bleak. The main street caters to retirees from northern China with hot pot restaurants and geriatric care.
Zhang Qun, a 70-year-old retiree from Heilongjiang, recalls the initial frenzy. There were crowds of people clamoring to buy, he said. If he sold his apartment now, he would lose half his investment. The Evergrande sales office is now littered with old brochures.
Corruption and Environmental Violations
The project's approval involved significant corruption. Zhang Qi, the former mayor of Danzhou who approved it, is serving a life sentence. Luo Baoming, the former party secretary of Hainan province, received a 15-year prison term for bribery. The venture also violated environmental protection laws.
Xu Jiayin, once China's richest man, is now in jail. Authorities prosecuted him for financial fraud. His grand vision lacked a solid plan for profitability.
A Symbol of a National Crisis
Ocean Flower Island exemplifies China's broader real estate crisis. New home sales have plummeted to a 15-year low. The government has started censoring pessimistic online posts about the property market. The philosophy of build it and they will come has proven disastrous.
Nearly every Chinese city has unfinished towers from Evergrande. But Ocean Flower Island concentrates the folly. The Castle hotel, with 5,100 rooms, sits largely empty. Wind whistles through broken windows in luxury villas. Shopping streets resemble deserted movie sets.
Glimmers of Hope Amid the Ruins
Some residents still believe in the island's potential. Wang Xian, a retired banker, notes that 300 million Chinese will retire in the next decade. If just 1% come here, this place will be a big success, he argues.
Real estate agent Li Yanbo offers a mixed view. A lot of people lost money because of Evergrande, and are angry, he said. Yet, he acknowledges that some buyers gained paper profits during the boom. Prices have now stabilized somewhat.
The Chinese authorities face a monumental task. They must untangle the vast sums of money and dashed hopes embedded in projects like Ocean Flower Island. The wreckage is simply too big to clear away quickly. This ghost island stands as a permanent testament to an era of unchecked ambition and its painful aftermath.
