TAIPEI (Taiwan News) — Property prices in 10 Taiwan districts where TSMC has factories have surged by over 20% since 2020, with Baoshan Township in Hsinchu and Sinshih District in Tainan leading the growth.
TSMC's stock price has increased by more than 3.4 times over the past five years. It climbed from NT$248 on March 19, 2020, to a peak of NT$1,100 on Friday (Oct. 18).
Lai Chih-chang (賴志昶), public relations director at Great Home Realty, noted that TSMC's factory expansions have attracted related industrial chains to the surrounding areas. This resulted in the influx of a talented workforce that has created a strong demand for housing, driving up property prices, per CNA.
Among the 10 districts hosting TSMC factories, Sinshih in Tainan has seen the most remarkable rise in property prices. The growth of the Tainan Science Park has attracted a significant number of high-income tech workers to Sinshih, leading to a surge in property prices.
Since 2020, property prices in Sinshih have increased by over 144%. The average price per ping has risen from NT$122,000 per ping in the first nine months of 2020 to approximately NT$298,000 in the same period this year.
Similarly, Hsinchu’s Baoshan, where TSMC also has a factory, has seen its average transaction price reach NT$301,000 per ping in the first nine months of this year. The number marks a 135.2% increase compared to the same period in 2020.
The global semiconductor industry's boom has increased incomes for Hsinchu Science Park's tech workers, driving demand for housing in the area. As Hsinchu City becomes more developed, developers have expanded their focus to surrounding areas like Baoshan.
The continuous development of new projects at higher prices in Baoshan has contributed to a significant increase in property values. While TSMC concept housing is often seen as a reliable investment, it's important to consider the potential risks of a price bubble and subsequent correction if there are significant changes in the global industrial structure or if TSMC's factory plans are not realized, Lai said.
With the real estate market cooling down due to central bank regulations, investors should be particularly cautious, especially those solely focused on property investment.
