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🇹🇼 Taiwan /Economy & Trade

Taiwan real estate market faces short-term challenges, says Hua Gu chairman

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Hua Gu, a leading construction company, held its shareholder meeting where Chairman Chung Yung-chang discussed the current real estate market.
  • Chung described the market as "short-term bearish, long-term bullish" and called for the central bank to ease loan restrictions.
  • Despite a market downturn, Hua Gu is actively acquiring land in prime locations, including the Xinyi Planning District, citing strong cash reserves.

Chung Yung-chang, chairman of the construction firm Hua Gu, described the current real estate market as challenging, noting a significant drop in transaction volume. However, he expressed optimism, characterizing the market outlook as "short-term bearish, long-term bullish."

The real estate market is really not good right now, and transaction volume is much lower than before.

— Chung Yung-changChairman of Hua Gu, describing the current state of the property market.

Chung attributed the market's sluggishness primarily to the central bank's stringent loan restrictions, arguing they hinder economic development and employment. He urged the central bank to gradually lift these restrictions at an appropriate time. Specifically, he proposed significantly raising the threshold for high-priced homes in the six major cities, suggesting an increase from NT$70 million to NT$100 million in Taipei, as current price levels frequently exceed the existing cap.

The current situation is short-term bearish, long-term bullish.

— Chung Yung-changChairman of Hua Gu, characterizing the real estate market outlook.

Despite the overall market downturn, Chung highlighted that well-branded projects in prime locations with sound planning continue to sell well. Hua Gu's developments in the Taipei and New Taipei metropolitan areas have seen over 90% of units sold, with two-bedroom, 25-ping apartments being particularly popular, partly due to declining birth rates.

We hope the central bank can gradually lift the loan restrictions at an appropriate time and significantly raise the threshold for high-priced homes in the six major cities.

— Chung Yung-changChairman of Hua Gu, calling for easing of mortgage regulations.

Looking ahead, Hua Gu has allocated NT$3 billion to acquire land in the Xinyi Planning District. Chung explained this strategic move is driven by the company's substantial cash reserves, including NT$3 billion in fixed deposits, and annual revenue from project completions. He emphasized a cautious approach to selecting prime land, recognizing the scarcity of opportunities in the Xinyi district and Hua Gu's potential to enhance the area's value.

Projects with brands, prime locations, and good planning are still selling well.

— Chung Yung-changChairman of Hua Gu, discussing successful property developments.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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