Priciest studio flats register over NT$1 million per ping
By Kathryn Chiu, The China PostTAIPEI, Taiwan -- The most expensive studio flats in Taiwan were recently found near Taipei 101 and SOGO department store near Zhongxiao Fuxing Metro Station, with unit price per ping — 3.3058 sq. meters — at over NT$1 million.
October 15, 2013, 12:08 am TWN
On Monday, local housing website House Fun (好房網) compiled the latest update on actual transaction prices in Taipei, concluding that the average unit price per ping for studio flats in seven central business districts (CBD) in downtown Taipei exceeds that of Taipei City by nearly 30 percent.
According to House Fun, two studio flats, one in Zhongxiao CBD, in which SOGO department stores and Zhongxiao Fuxing Metro Station are situated, and another near Taipei 101 ranked top two.
The two studio flats respectively registered unit prices per ping at NT$1.058 million and NT$1.052 million — the only two whose unit prices per ping exceeded NT$1 million.
Wu Kuang-chung (吳光中), editor-in-chief of House Fun, said that the two CBDs feature prestigious schools, department stores, outlets and convenient public transport, making studio flats there the most expensive in the country.
About 5 kilometers away, near the Shinkong Mistukoshi department store, Regency Hotel and Zhong Shan Metro Station, investors can also find a quality home at the cheaper price of NT$6.5 million per ping, according to Wu.
Lingering Market Weakness Impacts Zhongxiao CBD
Amid rising unit prices of studio flats in Zhongxiao CBD, storefronts in the area change hands more frequently due to a significant decreases in mainland Chinese tourists and local purchasing power.
ZARA and UNIQLO set up shops near Zhongxiao Dunhua Metro Station last year, attracting more people to Zhongxiao CBD; however, outlets, tea shops and restaurants closed this year on the back of weakening domestic demand, Jessica Hsu (徐佳馨), director of the research division at H&B Realty (住商不動產), told United Evening News last week.
Hsin-Yuan Business Rehouse (欣元商仲) General Manager Jiao Wun-hua (焦文華) revealed that shop revenues in Zhongxiao CBD dropped well over 10 percent on average since the beginning of this year, leading to closures of many shops in the district.
Jiao said that new fashion shop owners who set a foothold in Zhongxiao CBD would usually prepare an operating capital of NT$2 million to NT$3 million and expect 1-2 years of losses; however, iRoo last week decided to close its Zhongxiao outlet after only one year of operations, indicating that the revenues are much lower than expected.