Wed, Jul 23, 2008 - Page 11 News List

Experts question wisdom of AIG land acquisition

By Joyce Huang  /  STAFF REPORTER

The location of the Taichung-based plot of land that AIG Global Real Estate purchased on Monday from China Metal Products Co (CMP, 勤美集團) for NT$1.086 billion (US$35.75 million) could pose a challenge for its planned luxury housing project at the site, a local real-estate expert said yesterday.

“Most luxury homes [in the city] are built outside that area — the old downtown area mostly known to senior residents of Taichung,” Chung Yin-tang (鍾尹堂), chairman of the market information committee at the Taichung Real Estate Development Association, said by telephone yesterday.

The 1,206 ping (3,979m²) deal also closed at an above-market unit price of NT$905,000 (US$29,800) per ping (3.3m²), higher than the land price of about NT$600,000 per ping in that area, Chung said.

He was nevertheless upbeat about the city’s potential and future sales of luxury homes, although its luxury home market is going through a phase of correction.

CMP disagreed, however, saying that the area had everything a luxury home requires.

“It is a very mature business district, surrounded by lots of green and two museums, with three five-star hotels within walking distance,” CMP spokeswoman Ho Pei-fen (何佩芬) said by telephone yesterday.

“We’re very confident the housing project will sell at a record-high unit price,” she said, adding that home prices in the area currently were between NT$350,000 and NT$400,000 per ping.

The planned luxury home project will be developed by AIG and CMP, Ho said.

She refused to say how many homes would be allotted to AIG.

This story has been viewed 1966 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