Shop-front locations more popular than mansions: statistics
By Linger Liu ,The China PostNew figures published by the Ministry of the Interior (MOI) yesterday indicated that sales of luxury apartments are low while sales of shop-front units are increasing.
March 16, 2013, 12:06 am TWN
According to statistics, the sales performance of luxury apartments in Taipei was weak throughout January and February. The report said in terms of apartments valued at more than NT$100 million, only one deal was completed.
The MOI said house prices in Taipei decreased 9.8 percent from the last month. According to the new figures, the sales of luxury apartments and grand residences in New Taipei City, Taichung City and Kaohsiung were also very limited, and sales were far from touching record prices.
Decreasing Sales in Luxury Properties
The MOI said registered house purchases totaled a meager 38,000 in February.
The report indicated that an apartment located at Sec. 2, Ren'ai Road in Taipei City, on an upper level of the Shanghai Commercial and Savings Bank building, sold for NT$146 million, or NT$1.61 million per ping, said the MOI.
A shop front located around the corner between Kaifeng St. and Huaining St. in Zhongzheng District, Taipei City, measuring only 8.6 ping, recorded a record price for a shop-front location. This shop front was sold for NT$53 million, or roughly NT$6.14 million per ping, according to the MOI.
According to executive researcher Sarah Liu (劉怡蓉) of Taiwan Realty Co. (台灣房屋), the weak performance in the luxury apartment and grand residence market was caused by the central bank's practice of limiting loan applications for luxury apartments and grand residence buyers.
The researcher said due to the loan restriction, buyers with less income and buyers with better finances both remain conservative in terms of investing in the luxury housing market.
According to the report, the number of shop-front sales are increasing. Realty researchers said it was due to the increasing amount of visitors from the mainland..
Transparency to Stop Housing Bubble
At the end of last year, the MOI established the real estate transaction database to provide actual selling prices for presale properties. According to the MOI, the property transaction system was launched online in October last year.
The government hopes the public will have open access to the actual property prices and related transaction information, said the MOI, with the goal of boosting the local real estate market through increased transparency.
The MOI said housing prices statistics can be a reference for homebuyers who lack the knowledge to successfully bargain with a broker, in turn helping them to achieve a more reasonable price.