New Taipei City's Largest Urban Renewal Project Auctions 112 Units

A significant auction of residential units is underway for "Zhi Shan Yuan," described as the largest self-initiated urban renewal project in New Taipei City's Xinzhuang district. A total of 112 units are being put up for auction in two batches, constituting nearly 15% of the development's total inventory. The estimated total reserve price for these units exceeds NT$2.7 billion (approximately $82 million USD).

The first batch of 52 units is scheduled for bidding, with a reserve price surpassing NT$1.4 billion. Individual unit prices range from approximately NT$15 million for a lower-floor unit to over NT$37.5 million for a higher-floor unit. The price per ping (a Taiwanese unit of area) is estimated between NT$540,000 and NT$570,000. The second batch of 60 units will be auctioned on August 5th, with a reserve price exceeding NT$1.3 billion, and individual unit prices ranging from over NT$16.16 million to more than NT$41.67 million.

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The auction price per ping is between 540,000 and 570,000 NT dollars.

Many of the units are being auctioned in a "bare shell" condition, with no electricity due to unpaid bills, and are unoccupied. Real estate agents note that while the starting prices are not considered high, the larger unit sizes and total prices, coupled with the varying conditions of the auctioned properties, present challenges. Potential buyers must also factor in renovation costs and outstanding utility and management fees. Despite previous auctions this year, only two units have been successfully sold, indicating a slow market absorption for this large-scale development.

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The auction price per ping of 500,000 NT dollars is not expensive, but the larger unit sizes and slightly higher total prices are a problem.