 2010-08-03 |
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(Central News Agency reporter Zhao Xiaohui, Taipei, August 3, 2010) Domestic adhesive tape manufacturer YC (4306) announced that its investment in Wangzhou Construction resulted in a failed bid for land in Neihu today. Analysts pointed out that YC has acquired three parcels of land over the past three years, resulting in an approximate 50% appreciation in land value. Currently, land in the Greater Taipei area is highly sought after, and YC believes that developing the land themselves would be more profitable than selling it.
The land that Wangzhou Construction put up for bid today is located at the intersection of Xingshan Road and Xinhu Second Road in Neihu. It is classified as a mixed-use commercial and industrial zone, covering an area of 1,838 ping (approximately 6,080 square meters), with a cost of around NT$700,000 per ping. It can be developed into office or industrial buildings, with a minimum bid price of NT$1.5 million per ping, but the bid ultimately failed.
YC Chairman Li Zhihsien stated that they prefer to have Wangzhou Construction develop the land independently. He believes that the Economic Cooperation Framework Agreement (ECFA) will yield benefits, and that commercial office products will be the future trend, thus they will focus on developing commercial office products. The market price for the first-floor storefront is expected to reach NT$1 million per ping, with prices for the second floor and above at least NT$600,000 per ping.
According to Qiu Tai (Huo Xuan), Executive Director of the Taiwan Real Estate Research Center, YC has gradually acquired three parcels of land in Linkou, Neihu Phase 5, and the New Taipei City sub-center in Xinzhuang over the past three years, totaling approximately 7,238.25 ping. Last June, YC sold one parcel of land in Linkou, covering about 268.1 ping, for a total price of NT$131.9 million, yielding a profit of about NT$40.56 million.
Qiu noted that this demonstrates YC's strategy over the past three years, primarily concentrated in Linkou, with a current land inventory of approximately 4,594 ping; the second-largest being the New Taipei City sub-center in Xinzhuang, with 985 ping; and Neihu Phase 5 with 1,839 ping.
He stated that YC has invested approximately NT$4.551 billion in land acquisitions over the past three years, and if the land values were to be re-evaluated, there would be an appreciation of about 50%, resulting in a profit of approximately NT$2.276 billion.
Qiu emphasized that YC has made significant profits from land acquisition over the past three years. While selling the land would yield immediate profits, if property prices continue to rise, developing the land independently would offer greater profit margins. He cautioned, "Land remains a valuable asset; selling it means losing it. So, prime area land should not be sold recklessly; otherwise, it could lead to regrets like those of Shin Kong Financial Holding Chairman Wu Dongjin after selling land in the Xinyi Planning Area A11. |
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