Government releases surface rights to prime property plots
By Ted Chen, The China PostTAIPEI, Taiwan -- The National Property Administration (國產署) yesterday announced that auctioning has been completed for the surface rights to six out 15 plots of prime land parcels, with total bids reaching NT$439.27 million.
August 22, 2013, 12:04 am TWN
Total bids exceeded the base amount of NT$417.7 million by NT$27.99 million, with yesterday's auction representing the second batch of land surface rights released by the government of land parcel surface rights this year.
The batch of six land parcels auctioned off yesterday is comprised of a plot near the NeiHu Technology Park in Taipei City, sold for NT$262.8 million, a Keelung plot sold for NT$13.01 million. Two plots sold for NT$51.96 million and NT$26.68 million in Taiping District (太平區), Taichung. A land parcel residing near Zuoying District (左營) in Kaohsiung City, sold for NT$56.8 million, and a plot near the Moguang (末廣) area, Chiayi City, sold for NT$27.99 million.
However, the administration stated that a number of plots residing near Taipei City's Zhongzheng District and Zhongshan District attracted no buyers in the auctions.
The administration also announced its plans to initiate a third round of auctions for surface rights to land plots in October, including parcels near the Chiang Kai Shek Memorial Hall and MRT Dongmen Station in Taipei City, and numerous plots in Hsinchu City, Yunlin County, Kaohsiung City and Penghu.
A real estate company remarked that the results of the auctions reflect investor sentiments toward the value of a parcel's location, availability of development options and viability in generating returns.
Surface rights are poised to become a major real estate investment vehicle, said the real estate company, attributing the claim to recent government policies aiming to revitalize the usability of state-owned land assets. Real estate-related investment activities are likely to see a marked surge as regulators progress toward removing barriers imposed upon life insurance companies, who are currently limited from seeking returns from the landed properties market, according to the company.