Six Chinese businessmen buy Taichung real estate

The China Post news staff

TAICHUNG, Taiwan — House purchases in Taiwan by mainland Chinese entrepreneurs yesterday got off with a bang, as six Chinese businessmen purchased over NT$1.3 billion worth of houses in Taichung, central Taiwan, which is expected to help fuel the prosperity of the local realty market, according to construction firms. The visiting Chinese enterprisers purchased 12 large-sized houses in the No.7 rezoning area in Taichung, which is deemed the choicest land area of the central city, at a unit price of up to NT$88.8 million. Based on the average size of 260 pings (one ping equals 36 square feet) for each house, the trading price averages at around NT$340,000 per ping, lower than the market price of NT$370,000 to NT$380,000 per ping.

Inspired by the “cheaper” prices, one of the six Chinese buyers made an additional purchase of shop front for NT$260 million, bringing their total purchases up to NT$1.32 billion.

The trading prices, however, were already 40 percent higher than before the March 22 presidential race, making land developers and construction firms optimistic about the prospects for the domestic realty market.

They said that mainland Chinese usually tend to cluster together when buying houses in Taiwan, and therefore their latest purchases in the No.7 rezoning area is expected to fuel the growth of the entire realty market at least in the central city.

For their part, visiting Chinese enterprisers said Taichung is beautiful city, boasting a kind of Japanese style,” one mainland Chinese buyer said. “Taiwan has a very healthy realty market, and boasts a bright outlook for development, given the upcoming establishment of three direct links across the Taiwan Strait. So I think this is a good investment done right now,” another buyer said.

Accordingly, most construction firms are optimistic that more mainland Chinese enterprisers will follow suit to purchase more houses in Taiwan, serving as great growth momentum for the local housing market.