Longfor Chairman: 'No Price Rise in Prime Districts Means a Fall' Amid Market Slowdown

Longfor Construction's chairman, Li Wenzao, observed that Taiwan's housing market is undergoing a consolidation, with policies gradually taking effect and prices softening in some regions. He noted that while prime "egg yolk" districts haven't seen significant price drops, the lack of growth amid inflation effectively means a price decrease in real terms.

During the company's shareholder meeting, Longfor Construction reported a 29% drop in 2025 revenue to NT$8.49 billion and a 23% decrease in net profit to NT$1.743 billion, resulting in an EPS of NT$6. The company approved a cash dividend of NT$5.5 per share. Looking ahead to 2026, the completion and delivery of projects in Linkou and Yuanlin are expected to boost operations.

Li Wenzao commented on the current market dynamics, including the strong performance of the stock market and a trend of some individuals shifting investments from real estate to stocks. He acknowledged this as a natural market outcome but suggested that capital markets will eventually enter a consolidation phase, potentially leading funds back to the real estate sector. He also projected that the overall housing market would remain in a high-level consolidation for the rest of the year, with individual project performance and brand competitiveness being key factors.

Longfor Construction currently has five projects on sale with a total value of approximately NT$29 billion, achieving an average sales rate of 80%. The company plans to launch two major commercial real estate projects this year, "Longfor ICT Technology Building" in Beitou and "Longfor Hongchuang Technology Building" in Nangang, with a combined value of NT$26 billion. The Beitou project, located near NVIDIA's planned Taiwan headquarters, is nearing completion and is expected to go on sale soon.

“

Although prices haven't fallen significantly in prime districts, considering inflation is constantly pushing up land, raw material, and asset prices, if housing prices remain stagnant, it's equivalent to a decline in real value. Even though prices haven't dropped in prime districts, not rising is equivalent to falling.