Property developers and brokers yesterday voiced regret over the Supreme Administrative Court’s ruling against an urban renewal project in Taipei’s Xinyi District (信義), saying the decision would discourage similar ventures even if they have government support.
The highest administrative court on Wednesday rejected an appeal by the Taipei City Government and the project’s initiator, Sen Yeh Construction Co (森業營造), annulling the Yongchun Community (永春) renewal project in line with the Taiwan High Court decision last year.
Real Estate Development Association of Taipei chairman Chen Chun-tung (陳春銅) said the judicial rejection sounded the death knell for urban renewal projects, which are not only time-consuming, but can be reversed even after policymakers give them the go-ahead.
The 16-year-old renewal project involves 126 owners, three of whom withheld their consent because of evaluation and procedural differences after the city government issued the permit in 2014.
The dissenters sought judicial recourse and won, after the builder tore down their apartments last year, supported by those in favor of renewal and tacit agreement from the city government.
“The ruling is like a slap in the face of the government and will scare away developers from taking on urban renewal projects as long as there is one single protester,” Chen said.
Chen, who is also the chairman of Liangmao Construction Co (良茂建設) and honorary chairman of Grand Mayfull Hotel Taipei (美福飯店), said the industry is at a loss about whether to trust the government’s authority on the matter.
The case brings to mind another controversial urban renewal project, Wenlin Yuan (文林苑) in Taipei’s Shilin District (士林), whose fate has been in limbo for years due to resistance by the Wang (王) family, Chinatrust Real Estate Co (中信房屋) vice chairman Richard Liu (劉天仁) said.
With the Yonghcun Community project coming to an abrupt halt following the ruling, it would have to start all over again if the initiator and owners decide to press ahead, Liu said.
“The court’s decision shows uncertainty and risks are high for urban renewal projects, with emotional appeals often taking precedence over professional opinions during the discussions,” Liu said.
He added that the public would lose confidence and patience in urban renewal, although a recent poll by the broker found that more than 80 percent of people would like to participate in such ventures to enhance building safety and living quality.
The building materials and construction stock index — a gauge of the nation’s property sector — fell 0.3 percent in trading yesterday, while the TAIEX dropped 0.47 percent, Taiwan Stock Exchange data showed.
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