Mon, May 07, 2012 - Page 12 News List

Kaohsiung’s real-estate market gets out from doldrums

Staff writer, with CNA

Property transactions in Kaohsiung last month hit an 11-month high of 3,401 units, up from 3,392 in March, in a warming real-estate market in the south, statistics showed.

According to statistics released by the Greater Kaohsiung Government, property transactions in the city for last month exceeded even those recorded in Taipei for the second consecutive month.

In Taipei, property transactions for last month rose to 3,228 units after the city posted monthly home transactions below 3,000 units for three months in a row.

Last year, average monthly housing transactions in Kaohsiung reached 3,122 units, much lower than the monthly average of 4,159 units recorded in Taipei.

Market analysts said the latest transaction records show that buying interest in the real-estate market in Kaohsiung has been accelerating.

LUXURY TAX

The accelerated demand has pushed transactions back to the level they were at before the government imposed a “luxury tax” in June last year.

The luxury tax, which is aimed at curbing property speculation, imposes a 15 percent sales tax on second homes sold within one year of purchase and a 10 percent sales tax on properties sold between one and two years after they were purchased.

Last month, transactions in Kaohsiung’s Zuoying District (左營) hit 487 units, while property sales in Sanmin (三民), Fongshan (鳳山) and Gushan (鼓山) districts reached 469, 399 and 367 units respectively, the Greater Kaohsiung Government said.

It said home buying enthusiasm in these four districts appeared most obvious, leading them to account for about half of the transactions in the city.

PRICE PER PING

Sinyi Realty Inc (信義房屋), one of Taiwan’s leading real-estate agencies, said the latest average price per ping (3.3m2) in Kaohsiung has risen to NT$130,000 (US$4,437) amid increased buying interest, in particular from first-time home buyers.

The property agency said in certain new projects in the city, the asking price even stood at NT$300,000 per ping, prompting many home buyers to chase prices.

Sinyi Realty said while the real-estate market in Taipei remains in consolidation mode, the market in Kaohsiung has regained momentum and has great potential to grow further.

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