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Nanshijiao MRT apartment units left unsold in auction

The auction of residential units within “Southern Star,” a new apartment building on top of the MRT Nanshijiao Station, had disappointing results on its first day yesterday as only 142 out of the offered 243 units were sold.

The lackluster performance came after poor sales of units in Xinyi No. 18 last Monday, when 16 units were offered and only eight were sold.

Market analysts attributed Monday's tepid sales to the fact that Xinyi No. 18 units were offered for a base price of at least NT$30 million. Some of the apartments also face power transformers across the street.

In yesterday's auction, a stronger response was anticipated as units within Southern Star were offered for a much lower NT$4.7 million to NT$25 million, translating into a unit price of about NT$370,000 to NT$416,000 a ping (3.3 square meters). This is 10-percent lower than the market value of NT$400,000 to NT$480,000.

Moreover, on the apartment building's open-house day, some 1,700 people visited which boosted market confidence.

Yet yesterday only 142 units were sold, although 499 bids were submitted. A total of 101 units failed to attract bids, translating into a failure rate of 41.5 percent. Most of the unsold units carried total base prices of over NT$20 million, although some were offered for lower prices.

The auction will go on till Wednesday, when the MRT transit authority will announce the final results.

Downward Price Pressures

Responding to yesterday's situation, real estate brokers said they weren't surprised.

“With various stringent measures launched by the government, sales have declined, and the housing market is faced with real downward price pressures,” they said.

Meanwhile, Chao Teng-hsiung, chairman of Farglory, attributed yesterday's lackluster performance to a lack of confidence among buyers.

“These measures, coupled with the stock capital gains tax and the luxury tax, have affected Taiwan's economy noticeably,” he said during a forum yesterday.

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