Highwealth Construction Corp (興富發) is to continue to target first-time and salaried home buyers and roll out small and relatively affordable housing projects across the nation.
The Taipei-based developer, which outperformed peers in terms of revenue last year, voiced confidence that real demand might underpin the market, which might fare better in the second half, if the central bank cuts interest rates again later this year.
“Gone is the era of rapid growth for the housing market,” Highwealth chairman Cheng Chih-lung (鄭志隆) told reporters on the sidelines of a shareholders’ meeting on Monday when plans were approved to issue a cash payout of NT$6 per share from net income of NT$8.12 billion (US$250.44 million), or earnings per share of NT$7.06, last year.
The earnings result represented an annual decline of 7.7 percent from 2014, in line with a tepid market.
Despite the slowdown, two or three-bedroom apartments priced between NT$5 million and NT$8 million remain popular, especially for buyers with real demand, Cheng said.
Highwealth is to take further advantage of the trend and launch new home projects at a pace of between NT$20 billion and NT$30 billion per year, the developer said.
The company is to soon introduce presale projects in New Taipei City’s Sijhih (汐止) and Sinjhuang (新莊) districts, Hsinchu, Taichung and Kaohsiung after it obtains building permits, Cheng said, adding that a subsidiary builder is to unveil an apartment building on Taipei’s Jilin Rd.
The housing market might gain further support from the central bank if it cuts interest rates again at the end of this month, easing mortgage burdens for home buyers, Cheng said.
Economists have bet on a rate cut of 12.5 basis points to relieve appreciation pressure from the local currency and stimulate investment demand.
Formerly an aggressive land buyer, Highwealth is to quit acquiring land where housing transactions prove slow, Cheng said.
Like other peers, Highwealth is expanding into the retail and hospitality industries to guarantee stable fixed income.
The builder has inked a contract to develop a department store in Kaohsiung that might start to generate revenue next year, Highwealth spokesman Liao Chao-hsiung (廖昭雄) said.
In addition, Highwealth is mulling investment in resort hotels in New Taipei City, Taichung and Kaohsiung, Liao said, adding that the company is in talks with hotel brands over serviced-apartment management contracts.
Highwealth is also interested in commercial and residential property development overseas and has paid visits to Vietnam, Myanmar and China, Liao said.
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