Sat, Apr 21, 2012 - Page 12 News List

Taipei house prices reach record high

Bloomberg

House prices in Taipei jumped to a record high amid a recovery in demand in anticipation of accelerating inflation after increases in petroleum-based fuel and electricity prices.

NT$800,000

The average price of a new house in Taipei rose to a record NT$800,000 (US$27,117) per ping (3.3m2) compared with an average of NT$550,000 a year earlier, said Stanley Su (蘇啟榮), chief analyst at Sinyi Realty Inc (信義房屋), the nation’s biggest listed real-estate broker.

“The low-interest rate environment, coupled with expectations of higher inflation, have pushed some people into buying high-end properties as they see these assets as more value-sustaining,” Su said in an interview yesterday.

The price of a luxury home — usually measuring more than 100 ping — in downtown Taipei costs about NT$2 million per ping, Su said.

President Ma Ying-jeou (馬英九) pledged during the presidential election campaign to fight real-estate speculation, which has led house prices in the capital to more than double since 2000 and reach a record high in September last year.

LUXURY TAX

Last year, the government introduced a 15 percent tax on homes sold within a year of purchase and a 10 percent levy on those sold within two years.

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