Sat, Jan 19, 2019 - Page 12 News List

Shining eyeing gradual housing market recovery

By Crystal Hsu  /  Staff reporter

Shining Building Business Co (鄉林建設) has 12 development projects on both sides of the Taiwan Strait that could generate NT$57.3 billion (US$1.86 billion) in revenue over the next three years, Shining chairman Lai Cheng-yi (賴正鎰) told a media briefing in New Taipei City on Thursday.

The Taichung-based developer, which also owns the luxury hotel brand Lalu (涵碧樓), expects China to drive 60 percent of its overall sales as it increasingly shifts its focus to that market, Lai said.

Revenue for this year has a fair chance of challenging the NT$10 billion mark, with China contributing 60 percent, he said.

Shining operates two Lalu outlets in Nanjing and Qingdao, and is also constructing serviced apartments and office buildings in China, he said.

In addition, the group is in talks about licensing its hotel brand to help boost income in line with a multifaceted expansion strategy, he added.

The strategy would also include investment in postpartum centers and cosmetic surgery clinics to meet customer demand.

The Taiwanese market would generate the remaining 40 percent of sales this year, driven by small luxury residential apartment sales, Lai said.

Small apartments of 26 ping to 38 ping (86m2 to 125.6m2) would continue to be the mainstream properties in Taiwan, while interest in larger luxury homes is recovering slowly, he said.

“Taiwan’s housing market may see a small, but gradual recovery on the back of real demand, low interest rates and favorable policy,” he said, citing the government’s decision to extend preferential interest rates for home purchases by young people by two years.

Total housing transactions could pick up 5 percent this year from last year, he said.

The company is to launch NT$15 billion of new construction projects in Taiwan this year, while seeking to digest properties from previous years, he added.

Shining last year sold 70 percent of the residential apartments on a hillside near Hongshulin MRT Station (紅樹林捷運站) in New Taipei City, generating NT$7.38 billion, Lai said.

The complex could contribute an extra NT$2.5 billion this year, he said.

The firm has six unsold luxury apartment units in Taipei’s Beitou District (北投) that could generate another NT$400 million, he added.

The property market could benefit from capital repatriation amid the trade dispute between the US and China, and the company is not ruling out the possibility of expanding its business in southern Taiwan, especially Kaohsiung, Lai said.

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