A look into the future of Taichung Real Estate
By Niang Chen Translated by Ann Lee
As the current international market has seen better days, concerned buyers are looking to the major markets to see how the economic uncertainty will effect their investments. For almost a decade Lin Jin-yen has worked in the real estate market; her precise judgment and almost prescient ability to work through unpredictable stretches in the investment market makes her a great candidate to discuss the near future of the Taichung real estate market with.
Though she hasn't seen any negative impact on her properties (which includes the underground parking lot at the Taipei Train Station, the Royal Boutique Motel in Dali, and the spacious Tao Yuan Tea Restaurant in Taichung) as of yet, Lin suspects the future of Tachung's housing industry is largely up in the air. The following are her thoughts on the issue:
As the cost of goods and services steadily climbs upwards, the only thing that seems to remain constant is our salary. In this uncertain time, it is important to review your assets and make financial decisions based on careful evaluation and informed advice--especially when it comes to property. Now is not the time to be impulsive.
If you are keen on buying a house or acquiring property, however, low housing costs are good news for you. Currently, the cost of buying second-hand properties is in flux; there is a marked difference between the prices of a month ago and today's prices. Newly-built houses, because of the added value of building materials, are still priced quite high. A lot of current home owners have lost a bit of money as their home value has decreased with the economy. Though no one likes to admit that they've lost money in the market, this is a definite risk of property ownership.
Although you can now travel to and from China conveniently, the added mass of transient people has not done much to contribute to Taiwan's real estate market. As the supply and demand for homes becomes unbalanced, a smaller percentage of homes will be sold. This adversely affects the entire buying wave. Most of the houses that are being bought are for the buyers themselves to live in. Today's buyer is looking for economy and practicality and the sellers are aware of this fact. If you're looking to buy up investment property to build your collateral, now might be a good time to hold on to your money.
If, however, you do decide to put money into new properties in this uneasy time, then look for a home with a low devaluation risk and facilities that will add to your new investment. If you own an empty property or undeveloped lot, this is not necessarily the best time for you to sell. Don't rush to lower your selling price and keep a careful eye on the market.