Taiwan- Home price increases 'preposterous': expert- February 23, 2011

http://www.chinapost.com.tw/taiwan-business/2011/02/23/292178/Home-price.htm

AIPEI, Taiwan — Home prices have increased in a preposterous fashion, said a real estate analyst yesterday.

Yen Ping-li, general manager of DTZ Taiwan, made the remarks a few days before the real estate advisor is set to auction off a property in downtown Taipei this Friday, on behalf of Ta Chong Bank.

The property is located on No. 47, Section Two of Renai Road in Taipei City, sitting on a 27-ping block of land. The space totals 142 pings. Each ping is 3.3 square meters.

The sale has a base price of NT$150 million, translating into a price of NT$5.48 million for each ping of land to be sold.

Commenting on the real estate market this year, Yen said property values have increased by a significant margin in certain areas of New Taipei City, formerly Taipei County.

For example, home prices in Linkou District average NT$400,000 to NT$500,000 a ping, while average unit prices in Xinzhuang and Banqiao are about NT$600,000 and NT$800,000, respectively. These are close to Taipei City home prices, he said.

People want to buy homes so much that they are looking for places that haven't been built yet, Yen said. “There is a high anticipation prices will increase, and such fear has driven people to do irrational things, like buying homes that they don't really need,” he said.

He recalled being accosted by someone, asking him whether it was worthwhile to buy a 60-ping residential unit in a lane off Jianguo South Road in Taipei, at NT$1.3 million a ping.

“A 60-ping unit is mostly for the middle class,” Yen said. “At a NT$1.3 million unit price, the house will be sold for a total of NT$70 million to NT$80 million, more than the amount typical middle class buyers can afford.”

“After you buy it, who are you going to sell it to?” he asked.

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