Wed, Mar 23, 2016 - Page 14 News List

Sales of Ximending land ‘remain hot,’ broker says

SUPPLY AND RETURNS:A Taiwan Realty Enterprise spokesperson said the high prices were due to the scarcity of commercial properties and the return rate

Staff writer, with CNA

A plot of land on which a two-story building sits in Taipei’s Ximending (西門町) area was sold for a record-high price of NT$26.08 million (US$801,845) per ping (3.305m2), a property broker said yesterday.

This shows that the commercial real-estate market remains hot, despite reports that the nation could see a downturn in Chinese tourist numbers due to new quotas imposed by Beijing authorities, which could hurt the industry, said Lee Yuan-hao (李源豪), a Taiwan Realty Enterprise (台灣房屋) agent who helped handle the transaction.

The land occupies an area of 11.5 ping on which the two-story building with a total floor area of 41.33 ping sits. The building in the bustling area has been rented out for about NT$500,000 per month, which represents a rate of return of 2 percent, Lee said.

The transaction price for the land set a national record of NT$300 million, or NT$26.08 million per ping, Lee added.

According to Taiwan Realty Enterprise statistics, transactions of single-unit houses in Ximending priced at more than NT$200 million were largely made in 2013 and 2014, with a plot of land on which a three-story house sits in the area’s Emei Street fetching the highest price at NT$248 million.

Charlene Chang (張旭嵐), a spokesperson for Taiwan Realty Enterprise, attributed the high land prices in Ximending to the scarcity of commercial properties in the area and a more than 2 percent return rate.

Chang said that the influence of tourism from China is a factor.

China reportedly is to impose quotas on the number of Chinese tourists allowed visas to visit Taiwan following Democratic Progressive Party Chairperson Tsai Ing-wen’s (蔡英文) win in the presidential election on Jan. 16, Chang said.

This has sparked concern that a reduction in the number of Chinese tourists could affect Taiwan’s tourism and hotel industries and its commercial property market, she said.

However, the high-priced transactions of commercial properties in Ximending in the first quarter of this year show that there is still a bright outlook for the shopping areas around Taipei Railway Station and Ximending, Chang said.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top