November 17, 2005
Taiwan's housing prices will rise 5-10% annually through 2010 at least, according to construction company and real estate brokerage executives speaking at a "real estate summit meeting" sponsored by the Taiwanese real estate magazine Zhu Zhan in early November. Some even declared this rate of growth would be sustained through the next ten years.
Yungching Real Estate Co. figures show that in Taipei City and Taipei County since housing prices bottomed out in the second half of 2003 prices of previously-owned houses have climbed around 35% and prices of pre-sold houses have increased by about 20%.
Chao Teng-hsiung chairperson of Far Glory Group, a business group with major construction interests, pointed out some interesting statistics. The average housing price in Taiwan is 6.29 times greater than the average household income, meaning the average family is able to buy an average house every six years. Meanwhile, it requires 11.3 years for a family to achieve this goal across Asia as a whole, 19 years in Hongkong and 24 years in Shanghai. Chao said this demonstrates that Taiwan has the lowest housing prices.
The executives attending the summit said that speeding the opening of cross-straits links with China and allowing Chinese tourists to visit Taiwan would bring benefits to the real estate market. One executive even predicted that the government would announce the opening of Taiwan to Chinese tourists within about two to three months after the upcoming elections in Taiwan. Others noted that the Olympics in Beijing in 2008 would not only boost China's economy, but the economies of other countries in the region as well, and that Taiwan's real estate market would be among those benefiting.
(China Times)
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