Home prices near some Taipei subway stations fall

Amid a slowdown in the local property market, prices of homes near the stations on Taipei Metro's Tamsui-Xinyi Line fell by more than 5 percent year-on-year in the first half of this year, according to the Yung Ching Realty Group (??????), one of Taiwan's leading property sales agencies.

Citing data compiled based on the government's home price registration system, Yung Ching Realty said that the prices of residential property located within 800 meters around the stations of the Tamsui-Xinyi Line fell to NT$524,000 (US$16,529) per ping (one ping equals 3.5 square meters) in the past six months, down 5.2 percent from a year earlier.

Even the area near the Taipei 101/World Trade Center station -- considered a top-notch business location -- took a hit, with home prices there falling by 18.4 percent year-on-year in the six-month period, the steepest fall among the 27 stations on the Tamsui-Xinyi Line, the data showed.

Home prices around the Taipei 101/World Trade Center, an area which also boasts a cluster of luxury homes, fell to NT$717,000 per ping from NT$879,000 per ping on average during this period.

Lin Tai-lung (???), a manager with Yung Ching Realty, said that the sharp fall in home prices in the Taipei 101/World Trade Center station area resulted from fading interest among property investors to buy luxury homes there. During that period, only one home priced at more than NT$1 million per ping was sold, Lin said.

Lin added that homes located on Wuxin Street nearby were sold for NT$500,000-NT$600,000 per ping in the six-month period, which pushed down home prices around the Taipei 101/World Trade Center station as a whole.

Prices of homes near the subway line's Beitou station and the Minquan West Road station, meanwhile, fell 17.7 percent and 12.9 percent, respectively, year-on-year during the same period, the second and third steepest drop on the Tamsui-Xinyi line, the statistics showed.

Prices of Beitou station's nearby homes fell to NT$408,000 per ping, Lin said, explaining that as apartments without elevators in the area were sold for NT$300,000-400,000 per ping in the past six months, and transactions of these apartments accounted for about 80 percent of the total deals, the average home prices in the area trended lower.

As for the Minquan West Road station, the average home prices there fell to NT$596,000 per ping in the six-month period since homes with elevators in buildings that were more than 30 years old were priced at NT$400,000 to NT$500,000 per ping. That sent the prices lower in the area as a whole, Lin said.

Lin said that the price falls of home nears the Taipei Metro stations defied a conventional thinking that the value of residential property near subway stations tended to be sustainable due to advantages such as transportation convenience.

Lin added that amid the fragile sentiment among investors and potential buyers in the local property market, home prices could continue to fall.

Source: Focus Taiwan News Channel