Delpha positive on capital city’s luxury property market

By Crystal Hsu  /  Staff reporter

Fri, Mar 22, 2013 - Page 13

Delpha Construction Co (大華建設) yesterday unveiled a presale luxury housing project in Taipei’s Neihu District (內湖), unfazed by credit control measures that are depressing luxury home sales.

The project consists of 109 apartments measuring between 60 ping (198m2) and 100 ping, and priced less than NT$1 million (US$33,500) per ping, lower than the NT$1.2 million per ping touted by a project near the construction site of the American Institute in Taiwan’s new office compound in the same district.

The project could generate NT$8 billion in revenue and is the Taipei-based developer’s only project this year, Delpha chairman Neil Lin (林文亮) said.

The company is also weighing projects in New Taipei City (新北市) and Taoyuan because of the firm’s familiarity with these areas, Lin said.

“I feel more comfortable doing business in northern Taiwan,” he added.

Lin said he was not worried by sluggish luxury home sales and likened such properties to a work of art that will eventually find its way to the right collector.

Moreover, the construction team responsible for the nation’s most expensive residential compound, The Palace (帝寶), is cooperating with Delpha on the project, Lin added.

The launch of Delpha’s new project came after a survey valued new constructions in northern Taiwan at NT$293.9 billion during a promotional campaign period covering this month and next month, rising 45.5 percent from a year earlier.

Chu Wen-yu (祝文宇), chairman of Jay San Lin Construction Co (甲山林), which is brokering Delpha’s Neihu project, said the market for new homes could experience a solid recovery in volume and value this year.

“Real estate remains the favored investment tool, and luxury homes in popular locations will continue to attract buyers,” Chu said.

Jay San Lin helped broker NT$73 billion of new home sales last year, Chu said, forecasting that this year’s figure would be more than NT$100 billion, given the sharp increase in interest from buyers after last month’s Lunar New Year holiday.

Chu said he welcomed the recent appointment of land economics academic Chang Chin-oh (張金顎) as Taipei deputy mayor and hoped that Chang would offer a more realistic understanding of the market.

Chang has advocated drastic tightening measures to induce a price correction after many people complained about the increasing unaffordability of housing in the capital.

“It would be a major challenge for politicians to seek to influence the market’s direction, which is based on solid economic fundamentals and the effect of interest rates,” Chu said.