Wed, Jan 26, 2005 - Page 11 News List

Property boom predicted in Ilan

REAL ESTATE Investors have leapt at the chance to bid on land belonging to the Ilan County Government, and demand is looking up, a real-estate advisory firm said

By Joyce Huang  /  STAFF REPORTER

After auctioning off more than 100 parcels of land in Ilan in the past two weeks, a real-estate advisory firm yesterday said that it expects a boom in property prices in Ilan in the near future.

"A minimum of 10 percent growth in Ilan's property prices is foreseeable," said Jessie Lu (陸惠如), associate director of asset management at DTZ Debenham Tie Leung International Property Advisers (戴德梁行).

DTZ was commissioned by the Ilan County Government to sell 40 parcels of land measuring between 20 ping and 100 ping on Jan. 15, and another 62 plots measuring between 2,000 ping and 10,000 ping last Saturday.

The Jan. 15 auction raised a total of NT$840 million (US$26.4 million), with prices for individual plots averaging between NT$60,000 and NT$570,000 per ping, while NT$2.27 billion was liquidated in last Saturday's auction, at which prices averaged between NT$24,000 and NT$180,000 per ping.

DTZ has been conducting auctions to sell land belonging to the county government since May last year. Approximately 80 percent of the properties on auction have been sold, but demand is looking up this year and could lead to a 100 percent closing rate, the firm said.

Lu said that Ilan's natural landscape has always been regarded as a garden in Taipei's back yard, although transportation poses difficulties for Taipei residents wanting to relocate there.

However, the Democratic Progressive Party government has vowed to complete the construction of a highway between Taipei and Ilan by the end of the year, which would greatly boost the property market in Ilan, Lu said.

She added that the Hsinchu Science-based Industrial Park plans to extend operations to five locations in Ilan, which should bring in high-tech industries and entrepreneurs.

According to Lu, it was mostly property investors, including individual investors and corporate developers, who rushed to bid in DTZ's auctions over the last two weekends.

According to reports in the local Chinese-language media, Formosa Plastic Group (台塑集團) plans to build a nursing home for the elderly in Ilan, which is also likely to boost the property market there and attract other land developers with an eye on the expected property boom.

This story has been viewed 3247 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top