Wed, Jul 28, 2004 - Page 10 News List

Property markets have recovered, developer reports

By Jessie Ho  /  STAFF REPORTER

The nation's property market has significantly recovered in the last quarter and is heading toward steady growth for last half of the year, a real estate indicator report issued by Cathay Real Estate Development Co (國泰建設) said yesterday.

"All signs showed that the market has emerged from the stagnation in the first quarter caused by political turmoil," said report author Chang Chin-oh (張金鶚), a professor at National Chengchi University's Department of Land Economics, at a press conference yesterday.

"We are very optimistic about the market in the next half of the year," Chang said.

Overall, 27,753 new housing units totalling NT$190.4 billion were supplied to the market in the second quarter, up 58 percent and 59 percent from the previous quarter, respectively, the report said. The sales transaction rate was 57 percent, also higher than the figure in the first quarter, it added.

Taoyuan-Hsinchu markets showed the best regional performance, the report said. The new residential supplies in these two markets increased by 75.72 percent in the second quarter from the previous quarter, with the average selling price rising by 1.58 percent.

Residential properties in Taipei County, however, tailed the recovery with demand rising by 58.36 percent but selling prices declining by 0.2 percent.

"As long as the economy keeps booming, property prices in the Taipei County area will gradually climb at the same pace as those in Taipei City," Chang said.

Even if the interest rates were adjusted in the year's second half, Chang said the increases should be gradual and have little impact on homebuyers' decisions.

The office leasing market in Taipei City also improved in the last quarter, as monthly rentals of Grade A office space rose to an average of NT$2,100 per ping, while the vacancy rate fell to 7.69 percent, according to the report.

The most expensive office space is in Hsinyi district, which charges an average of NT$2,400 per ping per month, followed by Tunhua North Road and Minsheng East Road with NT$2,350.

But Chang said the Hsinyi district will not be in the top-price throne for long, as Taipei 101 is set to release over 58,000 pings of space by the year's end.

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