New realty system to boost transparency: analyst
July 29, 2012, 12:05 am TWN
TAIPEI--A new property price registration system, scheduled to take effect Aug. 1, is expected to improve market transparency and speed up transactions, an analyst said Saturday.
Stanley Su, a manager of the research division at Sinyi Realty Inc. — one of Taiwan's leading property agencies, said after the price registration system is implemented, home buyers or sellers will be able to gain access to more accurate transaction information, starting from the fourth quarter of this year.
He said through the new mechanism, homebuyers and sellers are expected to be able to promptly react to any price fluctuations.
Under the price registration system, the actual prices of property transactions should be reported with the Ministry of the Interior within 30 days of the completion of any transaction.
Currently, property realtors serve as the main providers of market transaction information, Su said, but with the new price registration system in place, both homebuyers and sellers will have more creditworthy information to make a business judgment.
Su said the improved market transparency is expected to eliminate possible hassles during negotiations between buyers and sellers and help them reach an agreement more quickly.
In addition, Su said on the back of the new price registration system, the government is expected to release its annual assessments on domestic property prices which will be able to come closer to the market reality.
Meanwhile, Lai Cheng-i, chairman of property developer Shining Group, said the new price registration system is expected to help Taiwan play catch-up with the developed property markets that already have such a mechanism in place.
Lai said a transparent property market is expected to strengthen Taiwan's internationalization and attract foreign investors.
He said more foreign investors' participation in the local property market will be able to pave the path for the local property market to polish its global image.
However, Chao Teng-hsiung, chairman of Farglory Group, another leading local property developer, said there have been rising concerns that the government will levy property taxes based on the actual transaction prices registered in the new system.
Chao urged the government to improve the taxation system before deciding whether the property taxes will be collected on the actual prices to reduce market anxiety.