Lawmakers should attach clauses that would permit loss-making transfers among joint buyers for loan arrangement reasons to an amendment to the Equalization of Land Rights Act (平均地權條例) that aims to clamp down on speculative buying in the property market, Shin Ruenn Construction Co (新潤機構) chairman Ben Huang (黃文辰) said yesterday.
Huang, who is also vice chairman of the New Taipei City Real Estate Development Association, told a news conference that it is odd that the amendment would subject property purchases by legal entities to prior approval, as it would contravene free market principles.
The bans could dampen buying interest and stretch transaction periods, but are unlikely to trigger substantial price corrections given spikes in land, building materials and labor costs, Huang said.
Photo: Chen Yung-chi, Taipei Times
“Shin Ruenn would stand by its construction schedule despite economic uncertainty and unfavorable legislation,” he said.
Developers and builders would defend the 20 percent profit margin if 25 percent gains turn out to be unfeasible, Huang said.
Developers would price their projects more reasonably, rather than engage in price concessions to facilitate deals, he said.
A flat market is also favorable for developers that seek to build land stock, he said, adding that land prices have been unreasonably high in recent years.
The company said its affiliated Shin Ruenn Development Co (新潤興業) is to post NT$35.5 billion (US$1.16 billion) in profit over the next four years in line with a sustainable business strategy, and it expects the ongoing economic slowdown to make property prices more reasonable next year.
The Taipei-based developer is due to recognize profit from joint ventures at two pre-sale projects, Good Life of Metro Heart I and II in Taoyuan’s Luzhu District (蘆竹), Shin Ruenn Development chairman Kuo Chang-geng (郭長庚) said.
The projects near the Taoyuan International Airport MRT Line have sold out, and Shin Ruenn Development could divide a profit of NT$1.23 billion upon their completion next year, Kuo said.
The company has sold 99 percent of the Shin Ruenn double complex in New Taipei City’s Linkou District (林口) and posted a 94 percent sales rate for the Manor House in Taoyuan’s Dayuan District (大園), he said.
The developer has participated in the development of Fancy World in New Taipei City’s Tamsui District (淡水) and Sky Forest in Taipei’s Nangang District (南港).
Those projects have sales rates of more than 80 percent, which meant the company has divided NT$930 million and NT$5.22 billion for each, Kuo said.
Sales rates of more than 50 percent give developers and builders confidence to continue with construction without worrying over cash flow, profitability and other issues, Huang said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS