Prop­erty auc­tion nets only five sales in Kaoh­si­ung

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

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

Bid­ders were

cool

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.

‘Least Ideal’

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.

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