Taiwanese construction executive sees housing market rebound fueled by stock market gains

Hsieh Chih-chang, chairman of Dali Construction, expressed strong confidence in the second half of the year's real estate market, particularly following the central bank's recent signal that credit controls have reached their limit. "Real estate is a tool for wealth accumulation, and the housing market has hit bottom," Hsieh stated at the company's shareholders' meeting on Monday.

Hsieh noted that the central bank's indication of no further credit crackdowns has significantly boosted confidence in the real estate sector. He believes that while the conditions for a market rebound are still developing, Taiwan's overall economic performance and the current stock market fervor provide a solid foundation for optimism in the latter half of the year. He specifically pointed to a trend where individuals who have profited from the stock market are now turning to purchase high-value properties, a phenomenon particularly evident in the Hsinchu area.

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Real estate is a tool for wealth accumulation, and the housing market has hit bottom.

"Many people who have made money in the stock market are now buying the high-priced products they've long desired," Hsieh explained. "This is equivalent to using the funds bought into TSMC, making money from TSMC, and then returning to buy a house." He believes that after accumulating wealth in the stock market, people naturally look to real estate to continue growing their assets, indicating that the market's lowest point has passed and a gradual recovery is expected.

However, Hsieh also urged the central bank to consider easing loan restrictions for second-home buyers and relaxing the price thresholds for high-value residential properties. He believes such measures would assist genuine homebuyers looking to upgrade. Dali Construction has several major projects scheduled for completion this year and next, with a total value of over NT$34 billion (US$1.05 billion). The company also plans to launch new projects in Hsinchu, Taichung, and Tainan this year, totaling approximately NT$22.5 billion (US$690 million).

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Many people who have made money in the stock market are now buying the high-priced products they've long desired. This is equivalent to using the funds bought into TSMC, making money from TSMC, and then returning to buy a house.