Focus: High speed rail fueling property price rises

Sinyi identified the land around Nangang (南港) Station, Banciao Station and Tsoying Station, which are all complexes designed to combine bullet train, conventional railway and rapid transit services, as prime property.

The broker predicted the average property price would increase by 30 percent in Nangang (from NT$300,000 per ping) by 10 percent in Banciao (from NT$360,000 per ping) within the next 12 months.

Chang said it was a good time to buy a houses, but that speculators would need to watch out for rising risks.

In general, the high-speed rail service would bring more and quicker benefits to the real estate market in the north of Taiwan rather than the south, he said.

Stocks benefitting from the launch of the high speed rail include Taiwan Fertilizer Co (台肥) and Far Eastern Textile Co (遠紡), which own land in station districts like Nangang and Banciao, and Mega International Investment Services (兆豐國際投顧).

Macquarie Equity Research tipped Continental Engineering Corp (大陸工程), which is working with Formosan Rubber Inc (厚生) to develop land for residential use near Banciao Station.