Housing prices in north of Taiwan to keep on soaring

HISTORIC LEVELS: With the signing of an ECFA and increased difficulties in land acquisitions, ‘property prices will not reverse any time soon,’ one expert said


Fri, Apr 02, 2010 - Page 11

Fueled by the anticipated signing of a Taiwan-China trade deal in the second half of this year, housing prices in northern Taiwan are expected to continue soaring in the coming months, a property expert said yesterday.

Nii Tzu-jung (倪子仁), an executive at the Chinese-language Housing Monthly, said the housing market in northern Taiwan would remain bullish in the second half of the year, pushed up by the signing of an economic cooperation framework agreement (ECFA) and increased difficulties in land acquisitions.

The misery index for prospective home buyers in northern ­regions, particularly in Taipei City and Taipei County, is set to keep on rising, he said, adding that “land and property prices will not reverse any time soon.”

Housing Monthly reported that house prices in 10 of the administrative areas in Taiwan’s north have climbed to historic levels.

Among Taipei City’s 12 districts, house prices in four of them — Wanhua (萬華), Beitou (北投), Nangang (南港) and Wenshan (文山) — have surged to new highs as new projects have hit the market.

The Zenith, a luxury housing project recently launched by Huaku Development Co (華固建設) in the Nangang district, fetches nearly NT$1 million (US$31,500) per ping (3.3m²) — the highest residential property price for that district in eastern Taipei.

Huaku, a listed company on the Taiwan Stock Exchange, said the project sold out in just 10 days. Property and real estate prices in Nangang have more than doubled in recent years thanks to its hub location for several transport networks.

In the suburban Wenshan and Beitou districts, housing prices have also fetched a new high of NT$800,000 per ping in recent weeks, leaving market dealers flabbergasted.

In recent months, housing and land prices in Banciao, Zhonghe, Yunghe and Xindian in Taipei County have also climbed markedly, in part propped up by the booming property market in neighboring Taipei City.

“A comparison effect in housing prices between Taipei City and Taipei County has emerged,” Nii said.

In the area of Banciao, where the Taipei County Government is based, residential property prices have also fetched a new high of NT$850,000 per ping — heralding fiercer competition in the special district.

Even in Linkou, an area where housing prices have remained lower because of over-supply, a new high of NT$400,000 per ping has been seen. Analysts, however, are cautious about whether local housing prices will stay at the current high level. Recent sales figures are key indicators to predict future trends, they noted.

In Hsinchu City, 85km south of Taipei, Huaku has also launched a 25-floor luxury housing project at the Hsinchu Science Park (新竹科學園區), at a record-breaking NT$480,000 per ping.