Property auction nets only five sales in Kaohsiung
The Kaohsiung City Government’s auction of commercial properties cleared five out of 12 land parcels yesterday, the “least ideal” result since 2013.
The Kaohsiung City Government clears portions of land for commercial development in every quarter of the year. Twelve parcels went under the auctioneer’s hammer yesterday at a total reserve price of NT$1 billion.
The local government liquidated only five out of the 12 properties for a total of NT$343 million, a clearance rate of 42 percent, said Huang Chin-hsiung ( ), acting director of the Land Administration Bureau ( ) of the Kaohsiung City Government.
Lower Ping Wins
yesterday toward large tracts like one in Sanmin District ( ) in the proximity of a children’s recreational area, where the minimum asking price was NT$800,000 per ping.
All five deals closed were the lower- pinged parcels, Huang said.
One 377-ping parcel, offered at a reserve price of NT$650,000 per ping, attracted 14 bids and was sold for NT$659,000 per ping.
Another hot property was an even smaller parcel near the Hanshin Arena Shopping Plaza (
). The 50-ping piece was offered at NT$ 545,000 a ping and auctioned off at a profit at NT$700,000.
Huang said the outcome of this quarter’s property auction is the “least ideal” in two years and that it may have been affected by recent government policies.
The Land Administration Bureau will assess the landmass, price per ping, location and other variables that may have affected bidder interest to identify market demands and boost the clearance rate of future auctions, he said.
Earlier this month, the Legislative Yuan ratified the Finance Ministry’s property tax bill aimed at reforming the local real-estate market.
The new law adopts a progressive tax rate from 15 to 45 percent on property transactions, a rate that is lowered the longer the property is held as a bid to curb speculation.
Local property developers have generally praised the bill, saying that it puts an end to long- standing market uncertainty and should therefore spur housing transactions.
The new tax is scheduled to come into force on January 1, 2016 and to apply only to properties purchased after that date.
Analysts have predicted that in the months before implementation, the market will see a surge in home buyers and developers putting up properties for sale.