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Ximending land sale hits record high at NT$26.08 million per ping

Ximending land sale hits record high at NT$26.08 million per ping

Taipei, March 22 (CNA) A plot of land on which a two-story building sits in the Ximending district of downtown Taipei was sold in March for a record high price of NT$26.08 million (US$805,261) per ping (3.305 square meters), a property brokerage company said Tuesday.

This shows that Taiwan's commercial real estate market remains hot, despite reports that the island could see a downturn in the number of visiting Chinese tourists due to new quotas imposed by the Chinese authorities after Taiwan's Jan. 16 general elections, which could hurt the industry, according to Lee Yuan-hao, a Taiwan Realty Enterprise agent who helped handle the transaction.

The land occupies an area of 11.5 pings on which the two-story building with a total floor area of 41.33 pings sits. The building in the bustling area has been rented out for about NT$500,000 per month, which represents a rate of return of 2 percent, according to Lee.

The transaction price for the land set a Taiwan record of NT$300 million, or NT$26.08 million per ping, Lee added.

According to Taiwan Realty Enterprise statistics, transactions of single-unit houses in Ximending priced at more than NT$200 million were largely made in 2013 and 2014, and a plot of land on which a three-story house sits on the district's Ermei Street was recorded with the highest price of NT$248 million.

Charlene Chang, a spokesperson for Taiwan Realty Enterprise, attributed the high land prices in Ximending to the scarcity of commercial properties in the area and a more than 2 percent return rate.

Last year, the plot of land occupied by Taipei 101, the landmark skyscraper in Taipei's Xinyi District, priced at NT$6 million per ping, held its place as the most valuable in the city for the third consecutive year, according to an assessment by the city government released in December 2015.

China reportedly will impose quotas on the number of mainland Chinese tourists visiting the island following the election of Democratic Progressive Party Chairwoman Tsai Ing-wen on Jan. 16 as president.

This has sparked concerns that a reduction in the number of visiting Chinese tourists could affect Taiwan's tourism and hotel industry and its commercial property market.

However, the high-priced transactions of commercial properties in Ximending in the first quarter of this year show that there is still a brilliant outlook for the shopping areas around Taipei Main Station and Ximending. (By Wei Shu and Evelyn Kao)

Updated : 2021-10-20 03:34 GMT+08:00