Luxury housing market thriving: poll

Luxury housing is proving to be much more popular than expected with a supply shortage developing, which means bigger markups than the conventional housing segment, a survey by Evertrust Rehouse Co (永慶房屋) showed yesterday.

Housing measuring more than 60 pings (198m2) saw a rise of 23.7 percent year-on-year in price, for an average price of NT$421,000 (US$12,721) per ping last year, the survey found.

Last year's average price tag for a luxury home represented an appreciation of 62.3 percent from three years ago, the survey said.

Prices for studios or suites measuring less than 20 pings rose by 19.7 percent, while homes of between 40 and 60 pings increased by 17.5 percent, the survey found.

The annual supply of new luxury residences was no more than 200 units on average, said Liao Yung-sheng (廖永勝), president of Evertrust Rehouse Group (永慶房仲集團), a major real estate agent.

Limited supply makes such upscale properties depreciation resistant, Liao said.

Similarly, Citigroup Global Markets said prices for luxury properties in Taipei versus other cities in the greater Chinese market showed that the gap between average and high-end prices remains narrow, indicating that there is room for markups.

Uncertainty is rising in the suite segment in the wake of speculative investments and therefore selling pressure is emerging, Liao said.