 2010-11-19 |
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(Central News Agency Reporter Zhao Xiaohui, Taipei, November 19, 2010) The leading tape manufacturer YC (4306) has land on Xing Shan Road in Neihu District, Taipei City. Chairman Li Zhixian stated today that after the five municipalities election, the stock and real estate markets in Taiwan are looking optimistic. Selling this land would be a pity, and they are currently reluctant to sell. A decision will be made later on whether to develop it themselves or sell it.
Wangzhou Construction, a 100% subsidiary of YC, holds a parcel of land located at the intersection of Xing Shan Road and Xinhu Second Road, classified as a mixed-use industrial and commercial zone. The land area is 1,838 ping (approximately 6,078 square meters), with a cost of about NT$700,000 per ping. It can be developed for commercial office or factory use.
In August of this year, Wangzhou entrusted DTZ to publicly auction the land, setting a base price of NT$1.5 million per ping, but the auction ended without bids. Since then, major groups like Cathay, Shin Kong, and Fubon have inquired about the land, making it highly sought after. Li Zhixian has raised the selling price to NT$1.7 million per ping but is not willing to sell.
When asked about the latest developments, Li Zhixian said that current pre-sale housing prices in downtown Taipei have reached over NT$1 million per ping, and there is a positive outlook for commercial properties. Many friends have told him, "Selling this land would bring profits, but once sold, it can’t be bought back. That would be a pity."
Li Zhixian shares this sentiment, estimating that the net profit from selling the land would be around NT$1.5 to NT$1.7 billion, but if they were to develop it themselves, the net profit could reach about NT$2 billion, resulting in a price difference of at least NT$700 to NT$800 million between the two options.
Regarding the outlook of Taiwan's stock and real estate markets after the five municipalities election, Li Zhixian is quite optimistic. He believes that with the election concluded, political stability will return, leading to a "healthy inflation" in Taiwan, which will benefit the real estate sector. Because of this optimistic future outlook, Li Zhixian is torn about whether to sell the Neihu land, leading him to temporarily hold off on selling it. |
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