How can we make economic and social development compatible with the preservation of the nation's natural environment?
The government's sale of two massive residential parcels of government land in Taipei's Xinyi District to Shin Kong Life Insurance Co on March 2 for NT$6.38 billion (US$197.5 million), or around NT$2.74 million per ping (3.3m2) has sparked debate over balancing public and private interests.
Some have argued that the government shouldn't sell public land to private developers to build high-end property projects. Instead they promote ideas such as building low-cost hotels for foreign tourists in the hope that they will stay longer in Taiwan and spend more. Other options include constructing public facilities or simply leaving the land as green space for local communities.
The Cabinet -- apparently hypersensitive to every unflattering comment by the public -- on March 8 responded to the criticism immediately, saying it would oppose the proposed sale of another state-owned property, this time in Banciao, Taipei County.
The National Property Bureau is also under pressure to study the possibility of leasing, not selling, plots of unused state-owned land.
Although the government has stressed that the authorities are just studying the option of leasing land -- and thus the current model of public auction is not likely to be phased out for some time -- the market is likely to see the change in policy as a turning point for the property sector. A foreseeable tightening of supply resulting from the government's efforts to curtail land sales will drive up prices. In turn, this will mean fewer people can afford a decent house, sparking a vicious cycle over the longer term.
Some argue that selling the city's scarce land to private developers will only benefit the residents of high-end buildings, but imagine this: Does a city park do more for local residents or for developers? A city park may help increase land prices in certain areas, but it may also decrease the likelihood of similar price rises in other parts of the city.
Zoning is one of the ways a government controls the development of industry, commerce and housing in different areas. The zoning process is therefore inherently political, and affects the balance between public gains and private ones.
But zoning should conform to public needs in various stages of development, and the government should act to dispose of its land in a controlled manner and through careful assessment.
Recent debates have caused the issue to become overly politicized. They are also rather anti-capitalist, and this is especially bad news for a property market that has just recovered from a decade in the doldrums and that is increasingly dependent on the release of public land to remain vibrant.
That said, there's no need to panic.
Every year over the past five years, the government has taken back more than 2,300 hectares of public land to construct public facilities, while about 300 hectares were sold to private developers over the same period of time.
In the search for sustainable development models, Taiwan is coming to recognize the need for a rethink on the use of public land.
But no policy on land use should be based on populism; a populist government is itself the biggest threat to the market.
So, politicians: Please take your hands off this sector and let professionals do the job.
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