Taipei housing prices still on the rise

According to My Housing magazine, the average price of housing under construction in Taipei City reached NT$599,000 per ping (3.305 square meters) last year before falling to NT$576,000 per ping during the first two quarters of 2009, due to the financial crisis.

Prices have recovered in the third quarter, however, reaching a record-high of NT$601,000 (US$18,674) per ping, according to a poll released by My Housing last month.

Average prices for pre-sold apartments even reached NT$908,000 per ping in Taipei's upscale Daan district, the survey found.

The fourth quarter could see an equally sharp rise if residential property transactions are any indication. According to a survey by Sinyi Realty Inc., Taiwan's biggest property broker, the volume of home purchases in Taipei rose 7.1 percent in October compared to September.

Many industry insiders believe that the conditions fueling the recovery are unlikely to change in the near term and believe the market will maintain its momentum into the future.

“The boom in the housing market is fueled by low interest rates, which give business conglomerates and speculators leverage to play the market, “ said Stanley Su, a senior researcher at Sinyi Realty.

Taiwan's central bank has kept its benchmark discount rate at a record low of 1.25 percent since February, making real estate a far more attractive investment option than time deposits or bonds.

Other real estate brokers have attributed Taipei's rising housing prices to Taiwan's surging stock market, reduced estate and gift taxes, an easing of cross-Taiwan Strait regulations and a lack of confidenceinderivativesor othersophisticatedfinancial instruments.

“The ever-closer trade ties with China have surely given a boost to the property market, “ said Nii Tzu-jung, a My Housing executive.

Abundant liquidity and huge capital inflows have also positively impacted market sentiment, Nii added.

Chao Teng-hsiung, the chairman of Farglory Group, one of Taiwan's leading property developers, believes those factors will drive growth in the future.

Chao said he expects sales to boom when the property market is opened to Chinese buyers.

Memorandums of understanding (MOUs) on financial supervisory cooperation signed by Taiwan and China on Nov. 16 were the first step in opening the market,but an economic cooperation framework agreement (ECFA) between the two countries expected to be inked next year is still needed for a wider market opening.

The MOUs, which will take effect within the next 60 days, will allow each side to set up bank branches in the other's territory, and will allow China's qualified domestic institutional investors (QDIIs) to invest in the Taiwan stock market.

1|2|3|Next Page>>

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email