Home prices to rise in 5 municipalities

The China Post news staff

The China Post news staff — Real estate prices are expected by laymen, experts and developers to surge in the five special municipalities after the country elected the mayors of these metropolises over the weekend. According to a survey conducted by Taiwan Realty, 52.52 percent of the public predict an upward trend for home prices in the five municipalities after the Nov. 27 election and until the 2012 Presidential Election while 25.05 percent expect prices to remain at the current level. Only 22.42 percent of the interviewees said they expect home prices to go down in the same period. After the upgrade of Xinbei, Taichung, Tainan and Kaohsiung to special municipalities, a larger proportion of the funds allocated by the central government to these cities will go to construction, which will probably attract people from nearby regions to move into these metropolises; thereby pushing up the prices, said Chiu Fo-shien, an expert at the Taiwan Realty. The policies by the re-elected Taipei Mayor Hau Lung-bin promoting science parks, public rental housing and affordable housing will increase home demand in the capital, Chiu said. In Xinbei, mayor-elect Eric Chu’s plan to expand the metro system in the city will help push up real estate prices, Chiu forecasted.

The plan for a new metro line in the upgraded Taichung will also slightly lift up home prices, Chiu said while stressing that the enhancement of public infrastructure, education and public safety after the upgrade of Taichung to a special municipality will increase the value of real estate in the area. Tainan will enjoy a similar boost in property value after the upgrade, Chiu said. Mayor-elect William Lai’s policy to expand the transportation network to the entire greater Tainan area will make the southern city a place to watch in the future, he added. Reelected Kaohsiung Mayor Chen Chu’s promise to make the southern port a manufacturing and logistics center for southern Taiwan will attract laborers from other Taiwanese areas or foreign workers, resulting in the increase of home prices, Chu stated. Taiwanese developer Highwealth Construction announced Sunday, the day after the elections, that it will spend NT$2.1 billion to purchase lands in Taichung’s Shituen District. Richard Tsai, deputy chairman of the Fubon Group, said on Nov. 20 that the board of the company might inject another NT$20 billion to its NT$40 billion to NT$50 billion real estate investment fund.