Property investors rush to Taoyuan-Hsinchu: poll
The China Post news staff
August 31, 2012, 12:18 am TWN
The real estate market of the Greater Taoyuan-Hsinchu area is seeing an increasing number of people purchasing properties for investment purposes, a recent government poll showed.
According to the second-quarter survey released by the Construction and Planning Agency, 16.5 percent of buyers in the Taoyuan-Hsinchu area made the purchases for investment purposes, a rise of 11 percent from the first quarter and the biggest margin of increase among Taiwan metropolises.
In the first quarter, investors in Taoyuan-Hsinchu real estate accounted for only 5.5 percent, a decline from 30 percent for the final quarter of 2011 due to various negative factors including the European debt crisis, falling stocks and pessimism in the lead-up to the presidential election.
Yet, the figure jumped to 16.5 percent in the April-June period, indicating investors' confidence in the region has returned.
"There are several reasons that may have contributed to this," one broker said. "First, with the central bank launching various credit tightening measures against sales in Taipei, many investors have switched their focus to Taoyuan-Hsinchu. Second, the market in Taoyuan and Hsinchu is believed to have strong growth potential, another reason that got investors interested."
Total sales in Taoyuan and Hsinchu grew 0.3 percent in the second quarter on a year-on-year basis. While small, the figure was better than other areas in Taiwan, including Taipei, New Taipei City and Taichung City, where sales declined.