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Taiwan's top builder says it's raising price of new homes by 30-40%

Double-digit increase driven by soaring construction costs, inflation, hot money, and demand: Pau Jar

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Construction site in Taipei. 

Construction site in Taipei.  (CNA photo)

TAIPEI (Taiwan News) — To reflect the soaring cost of land and construction materials procurement, Taiwan's top builder Pau Jar Group (寶佳機構) is set to raise its home prices by 30% to 40%, depending on the location.

In addition to the spiraling cost of construction, the builder told UDN that it carefully weighed the strong demand in the housing market and the inflation surge expected in the next two years when making the decision.

Pau Jar Group is believed to own over 70 construction companies nationwide, including Delpha, which is reportedly preparing for the price hike. The group builds 15,000 to 20,000 new homes every year on average, making it the largest property developer in the country.

Cheng Shi-chung (鄭思聰), chairman of Pau Jar-owned Huang Chien Construction Co. (華建), told UDN local developers are anticipating that the active low-interest rate, flood of hot money, and ongoing inflation will continue to fuel the home-buying frenzy. Against this backdrop, the company will need to raise unit prices to reflect the rising costs to stay financially healthy.