Private paradise

Private islands are popular holiday destinations for those eager to get away from the hustle and bustle of ordinary tourist fare. (Photo: Courtesy of Lin Dong)

For those who can afford it, purchasing one's own island makes for a perfect holiday retreat

While most Internet users peruse online retail sites for discounts on everyday items, reasonably priced home appliances, or various other bric-a-brac, some Chinese wealthy recently spent a morning on Chinese e-commerce platform Taobao to bid on snagging themselves an overseas island.

On March 3, Taobao held an online auction for the sale of four islands: Katawaqa Island in Fiji, Little Lesbos in Greek, Deadman Island in Canada and the Eilean Righ in the UK.

According to Tong Ying, the director of business development from Long-Term, the company that handled the auction, more than 40 users made bids.

Little Lesbos and Deadman Island were sold to a property magnate from Yunnan Province for 4.8 million yuan ($773,569) and 1.7 million yuan respectively, and Katawaqa Island was bought by a businessman from Zhejiang Province for 5 million yuan, said Tong.

Eilean Righ remained unsold at the end of auction due to its high opening price-tag of 4 million yuan, but there has been interest in purchasing the island following the auction, she said.

Why buy an island?

Although the two successful bidders refused interviews with Metropolitan due to the desire to protect their anonymity, Tong said that both had plans to develop tourist infrastructure on the islands they had bought.

Tong said the unique characteristics of personally owning an island, either to use as a private retreat or to develop as an investment, were common motivations for those who purchased islands.

Tong said that Little Lesbos and Deadman Island already had facilities for tap water and electricity installed by previous owners, and Katawaqa Island, just off the coast of Vanua Levu, was "shaped like a heart, adding romantic flair."

As for Eilean Righ, the island was formerly home to Sir Reginald Fleming Johnston, a Scottish scholar and diplomat who served as a tutor to China's last emperor, Puyi. In one of the two houses he built on the island, Johnston has left thousands of classical Chinese texts, valuable relics and royal robes, said Tong. The house is currently owned by a former senior executive from Goldman Sachs.

According to Tong, in most jurisdictions, purchasing an island is little different from buying any other property. Owners remain bound to the laws of the country of which the island is a part, and the country's usual immigration laws apply.

"[Some islands] can be bought quite cheaply," said Tong. "Deadman Island was sold for just 1.7 million yuan - which is less than the price of an apartment in Beijing!"

Of the four islands auctioned, three gave buyers the permanent property rights. The purchase of Katawaqa Island gave the buyer an 89-year lease.

Lin Dong, a 42-year-old investor based in Guangzhou, Guangdong Province who owns 26 islands across China, said that in recent years, more and more Chinese were buying their own islands.

While exact figures are hard to come by, Lin said that when he started an informal private owners association in 2007, he knew of only eight other island owners in the country. Presently, his association has 48 members.

Lin, who bought his first island in 2006, said most of his island properties were located in Guangdong, Guangxi, Fujian and Hainan. The reason he bought the islands, Lin said, was a combination of investment and to have a private haven to retreat to.

"I plan to buy an island overseas this year, perhaps in Fiji or Palau," he said. "Some overseas islands are much cheaper than those islands in China, and [if I buy an island in the southern hemisphere,] my family could go their to enjoy summer when it's winter here."