Mon, May 22, 2006 - Page 12 News List

Acer Group auctions off villa units

POSITIVE RESPONSE Twenty-four of 30 units at the firm's Taoyuan County property were sold, and a second auction will be held in July to sell the remainder

By Jason Tan  /  STAFF REPORTER

Reflecting the bright real-estate industry outlook, Acer Group's land auction on Saturday received an overwhelmingly positive response, with 80 percent of the units sold.

Acer commissioned DTZ Debenham Tie Leung (戴德梁行), a London-listed international real-estate advisory and consultancy firm, to sell off 30 villa units on company land located in the Aspire Park (龍潭渴望園區) at Longtan, Taoyuan County.

The 17-year-old park was initiated by Acer's founder Stan Shih (施振榮) and his wife to offer company executives the option to live in a multi-functional technology community.

However, low occupancy rates prompted the company to sell some of the land.

Average floor prices of between NT$20,000 (US$627) and NT$30,000 per ping (3.3m2) attracted more than 350 interested participants, included 100 bidders, to the auction venue to try their luck, according to the Chinese-language Commercial Times yesterday.

The base prices were much lower than market prices in the area, where the average price per ping is more than NT$50,000.

According to DTZ, the 30-unit property covers an area of 46,000 pings, with a value of NT$500 million based on floor prices.

The auction on Saturday sold 24 units, with a total value of NT$180 million.

The average price per ping was NT$34,900, or 16 percent higher than the average floor price.

One of the hottest bidding wars was over a 268-ping unit, which had a base price of NT$6.15 million. It was finally sold for NT$8.9 million on the 56th bid, according to the paper.

The remaining unsold properties were mainly those covering more than 2,000 pings with floor prices above NT$50 million, it said.

Acer is set to divide the remaining land into smaller units for a second auction in July, the paper said.

Macquarie Research Equities, which earlier projected that house prices in Taipei City and Taipei County would rise further in coming quarters on sustained demand and limited supply, remains positive on this market.

"Taipei will be the only area to see price increases while declines will occur in others due to oversupply," the firm said in a report released last week.

The housing market followed this pattern for the first three months of the year.

While primary market house prices fell 0.4 percent on a quarterly basis in southern Taiwan during the period, prices rose 2.8 percent and 4.1 percent in Taipei City and Taipei County respectively, it said.

Land auctions in Taipei City in March prompted a rush to buy homes, as many people feared prices might increase further.

A fall in supply also helped to lift prices, according to Macquarie.

This story has been viewed 3594 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