Cross-Strait Policy Restrictions Easing, Luxury Mansion Prices in Taiwan relatively Lower
Taiwan government is now planning to lower the threshold for PRC Chinese investments in Taiwan real estate. This will provide a boost to the confidence of the quick response luxury mansion market. Buyers in the future will be increasingly interested in upgrading buying and the government is expected to continue opening up cross-strait ties as desired by the population. 2008 may therefore see the Greater Taipei luxury mansion market achieves "strong growth".
With today's M-shaped society and the large number of high-income earners, there is no shortage of money among luxury mansion buyers. What they lacked was confidence. With a more settled political atmosphere, luxury mansion buyers' willingness to buy should increase. When luxury mansion prices in China, Hong Kong and Taiwan are compared, the top luxury properties in Taipei City fetch around NTD $1.5 Million/ping. This is less than one-third of comparable Hong Kong properties and therefore they are significantly undervalued. With consumer spending now becoming M-shaped as well, the room for future growth in value can only be described as "unlimited". Historical political factors, rarity and location should also be taken into consideration. With more liberal government policies, luxury mansion districts outside of Yangmingshan,such as the villas in the Shuanghsi region, the Sinyi District, Tianmu and Dajhih all offer great potential. These will very likely experience explosive growth in the future.
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