By Crystal Hsu / Staff Reporter
Taiwan’s top developers remain positive about their business prospects this year, even as an ongoing COVID-19 outbreak and unfavorable policy measures dampen buyer interest.
Continental Development Corp (CDC, 大陸建設), the real estate development arm of Continental Holdings Corp (欣陸投控), said on Wednesday that it plans to move forward with land development and search projects , as it seeks to sustain earnings in the coming years.
“The ongoing virus outbreak will be another temporary drag on the housing market,” CDC Director General Liao Tsung-sen (廖淳森) told a news conference in Taipei.
Photo: Hsu Yi-ping, Taipei Times
However, the situation will improve once the COVID-19 situation stabilizes, Liao added.
The CDC would launch pre-sale projects totaling NT$21 billion ($714.58 million) this year and start offering newly completed housing projects in central Taipei and Taichung, Liao said, adding that the company was looking to expand into Taoyuan, Kaohsiung and other markets.
Adverse factors such as rising interest rates and economic uncertainty would not trigger house price corrections, although investors may have to wait longer to realize gains, he said. citing soaring building materials and labor costs.
Huang Hsiang Construction Corp (皇翔建設) said it will continue to thrive on real demand and urban renewal projects.
While construction companies generally feel the pinch of inflation, the Taipei-based company said it was less sensitive because it can hire migrant workers to build its urban renewal projects.
Urban renewal projects are also not subject to selective credit checks, giving the company more flexibility in financial planning, he said.
For-sale projects in Taipei, New Taipei City and Taoyuan could generate NT$30 billion in revenue this year, Huang Hsiang said.
Huaku Development Co (華固建設) told its shareholders on Tuesday that the housing market may regain momentum in the next quarter, even though it is this quarter affected by the virus epidemic and tighter credit controls. .
The central bank is expected to raise interest rates for the second time this year at its quarterly board meeting on June 16 to curb inflation.
A sizable number of potential buyers have retreated to the sidelines, but remain keen to invest in relatively inflation-proof real estate, Huaku said.
Overall, transactions could decline slightly this year compared to last year, but house prices would remain firm with an upward bias, he said.
Taichung-based Shining Building Business Co (鄉林建設) called on the central bank to suspend interest rate hikes and credit controls, saying Taiwan’s economy has shown signs of slowing and a Further credit crunch could harm all sectors.
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