Tue, Jul 19, 2016 - Page 12 News List

Taiwan housing prices remain resilient: report

ADVANTAGEOUS:Land prices in New Taipei City rose slightly, as ongoing infrastructure projects made the area more attractive, a report said

By Crystal Hsu  /  Staff reporter

Land prices are holding steady, with almost all cities and counties reporting a modest increase in the past six months, aided by well-established infrastructure facilities, despite a sluggish property market, a report by the Ministry of Interior said.

The urban land price index was 119.33 as of March, edging up 0.04 percent from September last year, reflecting mild gains across the nation, except in Taipei, and Hsinchu and Lienchiang counties, the report said.

The continued increase in land acquisition costs would limit the room for price corrections on the part of developers in weathering a business slowdown, it said.

Land prices in Taipei dropped 1.52 percent during the survey period, as poor economic fundamentals and property tax hikes chilled transactions, the report said.

The decline was more evident for old houses in administrative districts some distance from Mass Rapid Transit (MRT) stations, while properties in the vicinity of metro systems proved resistant to declines, it added.

Land price corrections extended to the capital city’s commercial and industrial clusters, hit by expectations that the drop in Chinese tourists would curtail retail revenues and by a general reluctance among companies to expand capacity, the report said.

New Taipei City fared better, registering a 0.54 percent increase in overall land prices, as continued improvement in transportation and other infrastructure projects made living in the municipality more convenient and attractive, it said.

Shulin (樹林) and Yingge (鶯歌) districts benefited from ongoing construction of new shopping malls and movie theaters, it added.

Land prices fell slightly in Sindian District (新店), as sellers trimmed prices to digest supplies, the report said.

Taoyuan recorded a 1.32 percent increase in land prices, as the upcoming completion of an MRT extension project to link Taipei and Taoyaun spurred development and migration demand, the report said.

The uptrend is particularly evident for real-estate properties in Bade (八德), where new business and residential clusters are emerging, it said.

Land prices grew 0.7 percent in Taichung, 1.56 percent in Tainan and 0.68 percent in Kaohsiung, as lifestyle convenience improved, the report added.

Penghu County reported the biggest increase of 3.22 percent in land prices, followed by 2.84 percent in Kingmen and 2.28 percent in Hualien, as property funds flowed to island groups and eastern Taiwan to take advantage of fast-growing tourism in those areas, it said.

Lienchiang County is also seeking to boost tourism, but property prices in thinly populated quarters declined and weighed on the index, the report said.

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