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HSR Causes Property Values to Rise

Property located around high-speed rail (HSR) stations is defying recent government measures to curb home prices and is attracting a good number of buyers due to convenient transport links, market analysts said on Saturday.

Despite recent property price- curbing measures, including the implementation of a property price registration mechanism, property developers are still launching new projects near HSR stations due to strong demand, they said.

They added that the solid demand reflects high hopes that property prices around the stations will rise further, as local governments are keen to use transport links to improve the development of the areas.

Under the property price system that went into effect on Aug. 1, the actual prices of property transactions should be reported to the Ministry of the Interior within 30 days of the completion of any transaction. The system aims to boost transparency and reduce speculation.

Alpha Jwo (卓輝華), president of Honda Property Appraisal Corp (宏大不動產估價師聯合事務所), said any property development project that has strong support from economic factors is attractive to a home buyer, meaning prices have become sustainable.

Jwo said homes around high-speed rail stations are able to take advantage of transportation development, which is expected to boost the economy.

He said that after the government launched the high-speed rail development project in 1992, prices of property near stations have been on the rise.

The analyst drew attention to the area near the Banciao (板橋) HSR station in New Taipei City (新北市), saying that commercial property prices have soared 328 percent this year from last year, while residential property prices in the area have jumped 360 percent over the same period.

In addition, commercial property prices around the Taoyuan HSR station have risen 150 percent and residential property prices have gained 233 percent.

Home buyers in the area near the Hsinchu HSR station have witnessed commercial and residential property prices grow 322 percent and 270 percent respectively, Jwo said.

Prices of commercial and residential property near the Taichung HSR station have risen 136 percent and 158 percent respectively, while commercial and residential property prices around the Zuoying (左營) HSR station in Greater Kaohsiung have gained 211 percent and 247 percent respectively, he said.

Lin Chin-hui (林進輝), president of Ji Mei Construction Co (吉美建設), said as the Taoyuan Aerotropolis project and the Taiwan Taoyuan International Airport Access MRT System project have been launched near the Taoyuan HSR station, homes around the station will benefit further from infrastructure development.

Home buyers are expected to favor the future quick transport links between Taoyuan and Taipei, a journey which will take only 20 minutes one way, Lin said.

Lin added that property around the Taoyuan HSR station would be a good investment.