 |
 |
|
|
Krihaat Glass Hill,
Thailand |
|
|
Al Noor development,
Ras Al Khaimah |
|
|
Al Sanaa Development,
Ras Al Khaimah |
|
|
|
| |
|
| |
Taiwan property set for boom if Ma improves mainland relations - analysts |
| |
HOME >> NEWS >> Taiwan property set for boom if Ma improves mainland relations - analysts |
|
|
 The property market in Taiwan is set for a boom if president-elect Ma Ying-jeou can improve relations with mainland China and stimulate the island's sluggish economy, analysts said.
Market-watchers expect a rise of 20 percent or more by the end of 2008 if Ma keeps his pledge to liberalise economic exchanges with China -- and some said there are already signs of soaring prices since his election last month.
'Luxury residential property prices in certain districts of Taipei jumped by one-third right after Ma's victory,' said Chang Hsin-ming, a marketing consultant with US-based ERA Real Estate.
He said site visits by potential homebuyers were up 30 percent to 40 percent in recent weeks, with many believing that the tense political rivalry with China will ease under Ma's leadership.
Ma, who takes office on May 20, campaigned on a vow to help create a 'commom market' with China across the Strait, improving trade and tourism by lifting barriers to the free flow of goods and people between Taiwan and the mainland.
Since the early 1990s, Taiwanese investors have channelled an estimated $150 billion to China, which has become the island's largest trading partner and biggest export market.
Doing away with trade barriers would increase the flow of money in the other direction, and allow Taiwan to take better advantage of the vast new wealth being created in China today, analysts said.
A survey by North Rehouse, a Taipei property firm, found that 67 percent of mainland investors were willing to buy real estate in Taiwan once restrictions are eased -- and predicted prices would go up 30 percent to 50 percent by year's end.
Despite decades of official hostility, there are many Taiwanese based on the mainland -- and they will also be looking to channel funds back to the island, Chang said.
'A more relaxed China policy will encourage Taiwan investors on the mainland to repatriate their profits back home without controls,' he said. 'Such fund inflows, no doubt, will benefit the local property market.'
Andrew Liu, managing director for real estate firm Colliers International Taiwan, said he was 'cautiously optimistic' about the outlook for the local market -- particularly for commercial property.
'Taking expanded cross-Strait economic exchanges into account, rental in Taipei office spaces may rise some 10 percent a year by 2011,' he said, up from previous industry estimates of a 5 percent to 7 percent annual increase.
China still claims sovereignty over Taiwan, which split from the mainland in 1949 after a civil war, and has threatened to invade the self-ruled island if it declares independence.
Under a 1992 agreement, Beijing and Taipei both accepted the official formula of 'One China' but interpreted by each in its own way, leading to Taiwan's current status of de facto but undeclared statehood.
But after eight years of tensions under outgoing President Chen Shui-bian, who was often seen as pushing the idea of independence too far, Ma's election is seen by many as ushering in a better era for business.
'It is no surprise for us to see increasing property investments,' said Wu Chun-Chieh, vice president of Eastern Realty, who predicted overall property prices to be up between 10 and 20 percent by the end of 2008.
'Ma's positive attitude towards China has removed political uncertainty to some extent,' he said.
Source: http://www.forbes.com/ |
| |
|
|
|
|
|
|
