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Talk of the day -- News digest of local media -- land price

Talk of the day -- News digest of local media -- land price

In Taipei City, a state-owned 87.12-ping (one ping is equal to 3.3 square meters) commercial land parcel and another 116.16-ping residential land lot were auctioned off Thursday, fetching NT$627 million (US$19.6 million) and NT$788 million, respectively.
The respective unit prices of NT$7.19 million per ping and NT$6.79 million per ping marked the highest prices ever recorded for commercial and residential land in Taiwan, and were the highest and third-highest, respectively, in the history of land auctions in the country.
Meanwhile, the Ministry of Finance is determined to go ahead with a plan to impose a tax on luxury residential properties in a bid to curb the skyrocketing property prices.
The following are excerpts from local media coverage of the issues: Economic Daily News: Su Chi-jung, manager of the planning and research office at Sinyi Realty Inc., said the auction outcome, which is considered a precursor of Taiwan's property climate in 2010, indicates that the market momentum remains strong.
Compared with three years ago, the unit price of NT$6.79 million per ping for the residential land parcel located on Jenai Road, Section Two represents an increase of 70 percent in land prices in the area.
Wu Chin-ming, vice president of Yung-Ching Realty's Consignment Division, predicted that the selling price of the residential project to be built on the site could hit NT$1.7 million to NT$2 million per ping. (Jan. 29, 2010) China Times: Chiu Tai-hsuan, an analyst at Taiwan House real estate brokerage, said the auction drew many bidders because there are very few undeveloped land parcels larger than 100 pings in the city's busy areas.
He said the parcels put up for auction Thursday have very high potential because they can either be developed independently or integrated with neighboring parcels.
According to Hsu Chia-hsin, director of the planning and research office at H&B Business Group, the "crazy" chase by property developers for the limited land in Taipei foretells that prices of new residential projects in the city's busy areas will continue to break records. (Jan. 29, 2010) Commercial Times: The 2009 housing index released Thursday by Cathay Real Estate shows that presold residential properties around Taiwan saw declines in both quantity and price that year.
Chang Chin-o, a professor at National Chengchi University's Department of Land Economics, noted that in Taipei County, the trading volume of presold residential properties in 2009 hit the highest level in the past 14 years. It is worth watching to see if that squeezes future housing demand in the Taipei metropolitan area, he added.
In the second half of 2010, he warned, Taiwan's property market might enter a "high risk" period owing to uncertainties such as cross-Taiwan Strait trade issues and the elections in five special municipalities.
Disagreeing with Chang, Chen Jen-tse, an assistant vice president at Cathay Real Estate, said he believes the current property recovery is healthy, because the chase for development land is limited to certain busy areas in Taipei City only, rather than all over the country. (Jan. 29, 2010) United Daily News: The Ministry of Finance (MOF) will meet with tax officials of 25 counties and cities around the country next week to discuss its plan to impose a luxury housing tax.
The MOF is expected to require the local governments to follow the example of Taipei City, which is planning to raise the official appraised prices of upscale residential properties in the city and shorten the appraisal interval from the existing three years to one or two years.
Taipei City is expected to adopt the new appraisal system in 2011, according to Hsieh Sung-fang, head of the Taipei Revenue Service. (Jan. 29, 2010) (By Y.F. Low)




Updated : 2021-05-16 02:39 GMT+08:00