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Foreclosure sales in 2011 hit six-year low: local realtor

Foreclosure sales in 2011 hit six-year low: local realtor

Taipei, Jan. 9 (CNA) The global economic uncertainty and low interest rates in the country pushed foreclosure sales last year to a six-year low, a local realtor said Monday. According to Kuan Pin Co., fewer houses than usual were put on the foreclosure market as the economic outlook remained uncertain and the interest rates stayed low. The low rates allowed homeowners to sell their properties via normal transactions. The number of foreclosure listings and auctioned-off properties and the last announced prices were therefore all at their lowest since 2005, it said. A total of 52,473 properties were listed on the foreclosure market in 2011, 10,028 of which changed hands through auction, with the last announced prices totaling NT$67.39 billion (US$2.23 billion) -- accounting for only 60 percent of the foreclosure sales in 2010, according to a study by Kuan Pin. However, the closing rate of last year (19.11 percent) and the average number of auctions per foreclosed property at 2.74 did not differ much compared with the figures of the past six years. The average closing rate during the six-year period was between 15.67 percent and 21.38 percent, with average number of auctions at between 2.66 and 2.89, it added. The company added that the most popular foreclosure item was stand-alone buildings, with consumers most interested in foreclosure properties in the Zhongzheng and Xinyi districts of Taipei and the Wugu, Linkou, Xinzhuang and Taishan districts of New Taipei. The four New Taipei districts were seen as attractive investments because home prices in the areas were relatively low, it said, adding that important infrastructure in the areas, including the newly opened Xinzhuang Line of the Taipei mass rapid transit system and a rezoning plan, also contributed. Meanwhile, in the typical real estate market, the most popular items last year were those priced at around NT$5 million, according to H&B Business Group. It said that from Oct. 7 last year to Jan. 8, properties priced at less than NT$5 million in greater Taipei had an absorption rate of 19.91 percent -- the highest rate in all price brackets, while the rate of those priced at over NT$20 million was less than 4 percent. An absorption rate is the ability of the real estate market to absorb or sell all available properties for sale in a specific timeframe. Consumers were still able to find two-bedroom homes for less than NT$5 million in the Sijhih, Tucheng, Banciao and Xindian districts if they did not consider the condition and location of the property, said Hsu Chia-hsin, a director with the group. The same price would get no more than a suite in Taipei, she added. (By Eva Feng and Jamie Wang)


Updated : 2021-08-01 14:46 GMT+08:00