Boosted by the opening of the Hsuehshan Tunnel (
The 12.9km tunnel opened last Friday and shortens the driving time between Taipei and Ilan from two hours to around 30 minutes.
According to statistics from the Ministry of the Interior, turnover of housing units in Ilan reached a record high of 8,850 transactions in 1995 before sliding year by year to a low in 2001, when just 3,561 units changed hands.
Market demand then picked up, with a growthe trend becoming more apparent over the past two years. The area's transaction volume last year soared to its highest level in seven years with 6,507 cases, boosted by public anticipation of the opening of the tunnel.
"Ilan's housing market started to reflect a bullish atmosphere in the third quarter last year. Now the market will get even stronger," said Fred Ying (
The group operates the upscale resort The Lalu (
He predicted the boom would last for another two to three years, helped by the promised opening up of Taiwan to Chinese tourists in the second half of the year.
Sinyi Real Estate Inc (信義房屋), the nation's largest housing agent, forecast that the record-breaking tunnel would further drive up real estate transactions in Ilan, with the volume surging to 7,000 transactions this year, the highest level in more than eight years.
"Considering that Ilan is famous for its scenic beauty and rich leisure resources, and that its housing prices are comparatively low, its housing market is extremely attractive to Taipei residents as long as the travel distance is effectively shortened," said Victor Chang (
Chang said the average housing price in Ilan had advanced by more than 20 percent since last year and there was still room for the market to rise further.
Currently, residential buildings in Ilan sell for between NT$90,000 (US$2,760) and NT$100,000 per ping (around 3.3m2), according to Sinyi Real Estate.
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