Bank-owned luxury home sells for fair price: broker

The China Post news staff

Auctioneers yesterday managed to unload a bank-owned luxury home for a price close to its market value, bucking a recent setback in real estate prices. A unit from “The Xinyi Star” project in Taipei’s Xinyi development zone went for NT$221.1 million. The price per ping was NT$1.82 million, slightly higher than the average market price of NT$1.6 million to NT$1.8 million.

This shows that that luxury home sales are not affected by the recently proposed luxury tax, said Hsu China-hsin, a researcher with realty company Hbhousing. The market for pre-owned homes is heating up, and prices are rising, said Hsu, as a result a lot of potential buyers are eyeing bank-owned homes. Few luxury homes in the district are put up for sale, that’s why most of them have price support at a certain point, said Hsu, adding that such homes prove profitable in the long run.

The fact that other projects in the district have gone for prices that meet market expectations shows quality products can prevail despite negative developments in the marketplace, said Hsu.

An auction held last October to sell the unit was aborted when the per ping asking price, NT$2 million, was deemed too high.