Finding Bargains: Identifying Depressed Property Markets and Homes Near Improving Undesirable Facilities

In Taiwan's high-cost housing market, property experts are advising potential buyers to look beyond conventional choices and explore "price-depressed zones" or properties near facilities previously considered undesirable. The key, they emphasize, lies in identifying areas with upcoming infrastructure improvements or mitigation plans for problematic facilities, which can unlock significant price appreciation potential.

Examples abound across Taiwan. In New Taipei City, the Jiangzicui North Side Redevelopment Zone in Banqiao, despite being near the established Xinban Special Zone, still offers prices below the area average and is projected for future growth as supply dwindles. In Tainan, the Yongkang Fugu Road commercial area and the Dawan area, previously affected by flooding, are now seeing development spurred by city government initiatives to improve drainage and create retention ponds.

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Undesirable facilities are no longer absolutely negative. The key is improvement and reuse. As long as the location is good and the development conditions are mature, whether it's a gas station, hospital, tin shed factory, or even a funeral area, it can transform its image and create new value through greening setbacks, soundproof materials, environmental monitoring, and urban renewal policies.

Similarly, in Kaohsiung, areas near military compounds and veteran resettlement zones, like the Zuoying眷改區 (Zuoying眷改區), are attracting tech professionals due to their proximity to TSMC facilities. Despite being closer to the chip plants than the High-Speed Rail Zuoying Station area, these zones have lower property values. However, the upcoming completion of the New Tai 17 Line and revitalization efforts for military villages are expected to boost their appeal and connectivity.

The transformation of "undesirable facilities" is also a growing trend. Gas stations, temples, funeral homes, and even old buildings, once shunned, are now targets for developers in land-scarce urban areas. Developers are integrating these sites, often located in prime areas with good transport links, into new residential projects. For instance, in Taichung, sites of former gas stations, KTVs, and even a "beauty salon KTV" have been acquired and redeveloped into high-rise apartment buildings. These transformations, often involving greening, soundproofing, and environmental monitoring, are turning potential liabilities into assets, making them attractive to buyers prioritizing convenience and lifestyle.

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Gas stations, KTVs, and beauty salons, although they carry undesirable impressions, often have several common characteristics, including being located in mature commercial areas, facing main roads, having large base areas, and relatively simple property rights. Therefore, they have high development value, especially now that the real estate market has returned to rationality, which is attractive to owner-occupiers who value living functions.