New hous­ing projects in Taipei forecast to hit low

The China Post - - TAIWAN BUSINESS -

The num­ber of new hous­ing projects in Taipei City is ex­pected to fall in 2015 to the low­est in 19 years due to a se­ries of gov­ern­ment’s mea­sures to rein in home prices, a lo­cal prop­erty mar­ket mag­a­zine said Thurs­day.

Ac­cord­ing to My Hous­ing mag­a­zine, there have been only 100 new hous­ing projects in Taipei so far this year and the num­ber is un­likely to ex­ceed 160 for the whole year.

That would be the low­est an­nual num­ber since 1996, when new hous­ing projects in the cap­i­tal city to­taled 152, the mag­a­zine said.

It said in­vestor sen­ti­ment in the prop­erty mar­ket has been eroded by a tax on spec­u­la­tors, while trans­ac­tions have shrunk as a re­sult of the lo­cal cen­tral bank’s se­lec­tive credit con­trol on mort­gages for lux­ury prop­er­ties and for new home con­struc­tion.

Prop­erty de­vel­op­ers, there­fore, ap­pear re­luc­tant to start new projects in Taipei for fear of weak­en­ing de­mand, the mag­a­zine said.

It said the num­ber of new hous­ing projects per year in Taipei fell be­low 200 in 2011 and has since been hov­er­ing at around 180.

As re­sult, the to­tal value of new residential and com­mer­cial prop­erty in the city has re­mained at about NT$200 bil­lion a year since 2011, the mag­a­zine said.

In the city’s Xinyi Dis­trict, where there are a large num­ber of lux­ury homes and up­scale com­mer­cial build­ings, only one new pro­ject has been launched so far this year, the mag­a­zine said.

Ho Shih-wei, a man­ager in the mag­a­zine’s re­search depart­ment, said the mar­ket has also been af­fected by a short­age of land for new hous­ing con­struc­tion in Taipei.

In ad­di­tion, the slow pace of ur­ban re­newal in both the public and pri­vate sec­tors has con­trib­uted to the de­cline in the num­ber of hous­ing projects in Taipei, he said. Many prop­erty de­vel­op­ers have moved their funds into other cities in Tai­wan or over­seas be­cause of the mar­ket slow­down in Taipei, Ho said.

The sil­ver

lin­ing, how­ever,

is that com­pe­ti­tion in the Taipei mar­ket has shrunk as a re­sult, he said.

CNA

Yuanta Pre­miers Res­i­dence ( ), a lux­ury res­i­dence lo­cated in the Zhongzheng Dis­trict of Taipei City, is shown in this photo pro­vided by Tai­wan Re­al­ity Co. ( ), yesterday. Real es­tate agents found that the first case of fore­clo­sure at the Yuanta Pre­miers Res­i­dence will oc­cur in Septem­ber, with a 180-ping res­i­dence on the 18th floor to be sold at NT$262.7 mil­lion. Agents be­lieve there are high chances of a failed bid.

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