Urban renewal gives birth to housing price records

By John Liu, The China Post

TAIPEI, Taiwan — As the urban renewal process continues in Taipei City, prices of 13 re-constructed buildings have hit new records, according to a survey conducted by My Housing magazine. In Taipei, urban renewal often refers to the demolition of old structures in order to build a more modern building. This idea has been heralded as one of the solutions to Taipei’s steep property prices, as it increases supply. However, My Housing’s report shows that reconstructed apartment prices are among the highest in Taipei. Prices of two reconstructed buildings were the highest in Datong District and Wanhua District, at NT$1.28 million per ping (about 3.31 square meters) and NT$95,000 million per ping, respectively.

As prices of reconstructed buildings tend to go up, it will push prices of surrounding properties even higher, said My Housing business research manager He Shichang (���@��). According to He, there are several reason that drive up reconstructed housing prices. First, new apartments tend to use quality construction materials. Secondly, there is a substantial investment of human resources and time involved, as it usually takes several years to reach consensus among the residents of the original properties. Thirdly, there is a limited supply of available units. In addition, reconstruction is often done with properties that have square lots, which are relatively rare. As these properties are introduced onto the market, they are usually accompanied by record prices, said He. Both scholars and government officials have advocated the idea of carrying out more reconstruction projects as a way to increase housing supply and to solve Taipei’s surging real estate prices. However, the pace of this endeavor has been slow, and therefore few units have been put onto the market, He said. 11 Redeveloped Properties Make New Records According to My Housing, 11 reconstructed buildings’ prices also were the highest on their respective road sections. In Xinyi District, a re-constructed building is priced at NT$1.1 million per ping, the highest among properties located in the lanes surrounding Yongji Road.

In Zhongshan District, the price of a reconstructed building hit a new record on Section 2, Nanjing East Road, at NT$1.4 million per ping. On Section 2, Minsheng East Road, the new record is now NT$1.3 million per ping. In lanes of Section 2, Zhongshan North Road, the NT$1.4 million per ping marks a new record. In Shilin District, the new record on Tianmu East Road is NT$2.2 million per ping. In Datong District, the new record on Section 2, Chengde Road is NT$1.15 million per ping. In Da’an District, in lanes of Section 3, Heping E. Road, the new record is now NT$1.35 million per ping. In Nangang District, a new record was also reached on Xingzhong Road.