Kee Tai Properties Co (基泰建設) plans to sell a plot of land in Taipei City priced almost 50 percent more than when it was sold two years ago, auction organizer Savills Taiwan Ltd (第一太平戴維斯) said yesterday.
The plot, which measures 230.2 ping (761m2) and is located close to the Shilin MRT Station, has a floor price of NT$920 million (US$31.69 million), Savills Taiwan general manager Gordon Kao (高銘頂) told a media briefing.
That translated into NT$4 million per ping, which is 48.14 percent higher than the NT$2.7 million the developer had paid per ping to acquire the plot two years ago, Kao said.
“I’m aware the asking price is not low,” Kao said.
“But expectations of inexpensive land are wishful thinking given the increasingly limited supply in Taipei City,” Kao added.
The upcoming adoption of accounting rule changes, which will require more capital for presale home projects, prompted Kee Tai to sell the plot, Kao said.
A plot nearby was sold for NT$4.09 million per ping last year, Kao said.
Kee Tai has applied for an urban regeneration permit for the plot, allowing potential buyers the opportunity to redevelop neighboring buildings as well, once other owners and authorities give their approval, Kao said.
As urban regeneration projects are time consuming, Kee Tai prefers to make a profit now, Kao said.
The bidding date is set for Aug. 31 and the real-estate service provider had already received more than 10 enquires yesterday, Kao said.
Prospective buyers might consider turning the plot into a 16-story building, with the ground floor designed as a storefront and the rest used as luxury housing space, David Tien (田揚名), senior retail manager at Savills Taiwan said.
“The development plan could generate NT$1.7 billion to NT$1.8 billion in revenue with a 20 percent profit margin,” Tien said.