Taipei City Gov’t raises assessed land price

By John Liu, The China Post

TAIPEI, Taiwan–The Taipei City Government Wednesday raised the city’s assessed land price (公告地價) by 30.38 percent, which will result in a NT$1,100 increase in land value tax per household on average. The government makes an adjustment to the assessed land price every three years. The latest price applicable in 2016, the Ministry of Interior (內政部) had said, should not fall under the incremental land value increase between 2014 and 2016. The land value in the city has grown 33.07 percent in the past three years, but the assessed land price was raised by 30.38 percent in order to lessen citizens’ tax burdens, Taipei Department of Land said.

Nevertheless, in some districts the land value tax may still increase by more than 30 percent. Jessica Hsu (徐佳馨), head researcher at H&B Realty Co. (住商不動產), pointed out that properties in which land makes up a greater portion, such as luxury apartments, will be most affected. Shih Ji-ping (石吉平), the general manager of National Realty (全國不動產), said the adjustment is the largest since 1994, and that it is bound to boost home ownership costs. A possible side effect is higher rent, as landlords now have to pay higher home value tax, Shih said. The lot that Taipei 101 sits on — priced at NT$6 million per ping or 36 square feet — remains the highest valued business lot in Taipei. The Palace (宏盛帝寶) — priced at NT$4.45 million per ping — also kept its title as the most valued residential property. Declared Land Value Also Jumps 6.23 Percent The city government also hiked the current land value (公告土地現值) by 6.23 percent, which will lead to higher transaction tax in property trade. Of Taipei’s 12 districts, Zhongshan, Daan and Songshan saw the highest rise in current land value, by 7.04 percent, 7.03 percent and 6.84 percent, respectively. The three districts have well connected MRT networks, contributing to better living and business conditions, said Lee Te-chuan (李得全), the head of Taipei Department of Land.

Urban renewal projects in these districts also led to more efficient land use, more public infrastructure and tourist attractions, Lee said. The land under the Nangang Station “build-operate-transfer” project represents the largest land value increase of 41 percent. The opening of new shopping districts, construction of hotels and commercial buildings and the arrival of Taiwan High Speed Rail have hiked the land value.