Taiwan's real estate market is expected to grow steadily next year, on the expectation that the government will gradually open direct links with China and lift a ban on Chinese tourists in the wake of Saturday's election result, according to a report released by the China Credit Information Service (
The report by Jessie Lou (
To rebuild support, the government may boost reforms, and adjust its cross-strait policies, Lou said in the report.
The Chinese Nationalist Party (KMT) won 14 out of 23 county commissioner and city mayor positions, while the DPP won six.
Tourism properties, including hotels, markets and stores, will soar should the government give the green light to Chinese tourists, the report said.
Prices and rents for office space would also rise after the realization of direct transportation with China, the report said.
The market for commercial property will also be boosted by real estate investment trusts (REITs), which are expected to invigorate transactions in the office building market, the report said.
In the housing sector, although supply will increase significantly next year, the market remains positive as interest rates are still low, and NT$180 billion (US$5.4 billion) of government funds are still available at a preferential interest rate for first-time home buyers, the analyst said.
Although prices in the industrial property sector have been sliding amid the migration of industry overseas, the land may find demand in the service industry, such as logistics, warehouse and shipping operators, the report said.
The only concern for the real estate market is a possible outbreak of avian flu, the report said.