January 28, 2005
The total number of real estate offices operated by Taiwan's eight largest real estate agencies increased 41% from 862 offices in 2003 to 1,217 in 2004, the highest level since 1998, according to figures released by Yungching Real Estate. With brokerages willing to invest so heavily in the expansion of their operations, this is a clear indication of just how bustling Taiwan's real estate market is.
The economic recovery, major infrastructure projects and government incentives for home buying are credited with driving the volume of real estate transactions in 2004, which rose 7% on the year in the first eleven months of the year.
Taking a regional look, Taipei County led other areas for the total number of real estate agency offices. In the past, it has always been either Taipei County or Taipei City that leads this list. Rounding out the top-five for 2004 are Taipei City, Kaohsiung City, Taichung City and Taoyuan County.
In the first eleven months of 2004, a total of 87,000 real estate transactions were recorded in Taipei County, accounting for 23% of all real estate transactions in Taiwan in this period. Home to 3.7 million people, Taiwan's most populated county also has the largest number of real estate offices of any city or county. The county's 325 offices accounted for 26% of all real estate agency offices in Taiwan. Number two Taipei City on the other hand had 296 offices as of the end of November.
Although Taichung City has in the past consistently had the third highest number of real estate agency offices in Taiwan, 2004 proved to be an exception, as Kaohsiung City stepped up into that position with 112 offices. The southern city's real estate market is rolling along due to a jump in employment rates in the city resulting from, among other things, the construction of the city's mass rapid transit system and the multi-purpose trade zone at Kaohsiung Harbor. Kaohsiung City also achieved a 16% growth rate in the number of real estate transactions in 2004 up to the end of November, the highest growth rate in Taiwan.
Taichung City dropped to fourth place with 110 offices and Taoyuan County took the fifth spot with 88 offices. Taichung City's real estate market is being driven by a number of big projects, including the new phase-7 zoning area, where some high-end motels have been constructed recently, art and science museums, and a planned new city government center. Situated advantageously at the intersection of two major freeways, Taoyuan County is one of the hottest real estate markets in Northern Taiwan.
Yungching Real Estate says that while it does not expect Taiwan's real estate market to experience the strong growth witnessed in 2004, it does see the market remaining hot in 2005. This prediction is attributed to the gradual disappearance of the "three lows," i.e. low-interest financing, low real estate prices and a low land value increment tax. The brokerage says that the continued buying atmosphere will also further push the number of real estate agency offices higher.
(Central News Agency)
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