Wealth increases on back of real estate appreciation: report
By Annie Yang, Special to the China PostTAIPEI, Taiwan -- The latest government statistics on national wealth, released on Thursday, indicated that Taiwan's net national wealth in 2011 increased by NT$10.8 trillion, mainly due to appreciation of real estate.
August 30, 2013, 12:00 am TWN
The Directorate-General of Budget, Accounting and Statistic (DGBAS,主計處) under the Executive Yuan yesterday released the 2011 National Wealth report, which said gross national wealth (GNW) was NT$187.4 trillion at the end of 2011, while net national wealth (NNW) was NT$147.2 trillion, an annual increase of NT$10.8 trillion in late 2011.
According to the report, GNW refers to the total monetary value of the capital, goods and services, including net foreign balance and tangible assets, owned by a nation at a particular period of time.
NNW is the figure produced after taking GNW and subtracting the liabilities. Both NNW and GNW are macroeconomic indicators used in a nation's overall economic analysis and planning.
The national wealth report said real estate appreciation was the main contributor to GNW in 2011. However, the value of total assets excluding real estate actually shrank in 2011, the United Evening News cited statistics in the report as saying.
The report also showed that NNW per capita in Taiwan rose NT$450,000 from 2010 to NT$6.34 million. Those assets factored in NNW per capita include overseas assets, real estate, machinery and equipment, and other types of durable goods.
Real estate appreciation for each household increased NT$240,000 over the course of 2011, the report indicated.
DGBAS said the “announced land current value” index — which measures land value — surged NT$6 trillion in 2011. Housing prices jumped NT$2 trillion given strong housing development activity. In total, the national real estate value climbed to NT$10.52 billion, representing 71.5 percent of NNW in 2011.
Su Chi-jung (蘇啟榮), manager of the Department of Enterprise and Research of Sinyi Realty, expressed concerns over the situation.
The report indicated that wealth growth is currently overly dependent on real estate appreciation, a situation which may harm economic development, said Su.
Regarding the conclusion, many middle-class workers complained to local media that they can't afford to buy a home of their own, therefore their financial situation hasn't improved at all.