Sales rates for presale and newly completed houses in northern Taiwan averaged 45.77 percent last year, an increase of 8 percentage points from 2017, as the market continues to improve, the Chinese-language Housing Monthly (住展雜誌) reported yesterday.
While the figures reflect an improved sentiment among developers and buyers, they also suggest increased pressure to move unsold houses, the magazine said.
“The sales rate stood at 45.77 percent, not far off from the 50 percent mark indicating a bull market,” the magazine’s research manager, Ho Shih-chang (何世昌) said.
The market is likely to have bottomed out in 2016 and staged a slow recovery since then, Ho said.
Developers and builders in 2016 sought to offer price concessions, as well as free furniture and decor, to stimulate sales, but have become increasingly inflexible, Ho said, adding that buyers might no longer have the upper hand once the sales rate climbs to 50 percent.
Hsinchu reported the highest sales rate of 59 percent last year, outperforming other cities in northern Taiwan, as a technology boom raised resident’s incomes, encouraging more housing transactions, Housing Monthly said.
Hsinchu is home to the Hsinchu Science Park (新竹科學園區) and the world’s largest critical component manufacturers.
Sales rates rose to 68 percent in East District (東區) and 64 percent in Siangshan District (香山區) where house prices are relatively affordable, it said, adding that sales rates were less than 50 percent in districts with prices of more than NT$300,000 (US$9,730.78) per ping (3.1m2).
Taipei reported sales of 6,033 presale and new housing units, raising its sales rate from 33 percent to 46 percent, the magazine said.
The sales rate surpassed 50 percent in the districts of Wanhua (萬華), Zhongzheng (中正) and Songshan (松山), but hovered at just more than 30 percent in Daan (大安) and Neihu (內湖), it said.
Affordability accounts for the difference, Ho said.
New Taipei City fared similarly with a sales rate of 46 percent, or 10,870 units, the report said.
Presale and new houses in the districts of Tucheng (土城), Sanxia (三峽) and Lujhou (蘆洲) proved more popular than in Tamsui (淡水), Rueifang (瑞芳) and Bali (八里), it said.
In addition to affordability, convenient locations play an important role, Ho said.
Keelung lagged behind other cities with a sales rate of 33 percent, weaker than in 2017, the report said.
Despite better sales rates, the pressure is building to move unsold houses as their number is increasing, limiting room for price hikes, Ho added.
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
FRONTRUNNER: While the company’s global parent has pledged to lower emissions to 2 tonnes per employee, the local subsidiary has curbed its output to 1.8 tonnes HSBC Bank Taiwan Ltd (?豐台灣商銀) is committed to enhancing corporate social responsibility by cutting carbon emissions, boosting sustainable financing and conducting projects that result in positive social impacts such as wild bird protection, the bank said in an interview in Taipei on Friday. The bank aims to reduce its carbon emissions as its parent company, HSBC Holdings PLC, earlier this month said it targets to reduce emissions in its daily operations and supply chains to net zero by 2030, as well as net zero emissions of its portfolio of customers by 2050, it said. HSBC Taiwan has adopted measures to make its
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months