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Revised urban renewal bill may drag down housing prices: realtor

2012/06/15 18:46:43

Taipei, June 15 (CNA) The price of secondhand houses in Taipei may drop 15 percent in the second half of the year if a controversial bill to revise the urban renewal law is approved, a local realtor said Friday.

"The impact (on housing prices) might be greater than that of the luxury tax," said Wang Ying-chieh, a senior executive of Taiwan's General Chamber of Commerce and chairman of Eastern Realty Co.

The revised law will make it more difficult to renovate old housing units, and investors would be less willing to buy secondhand houses, which would drag down the price of such property, Wang said.

According to the draft bill that has been proposed by the Ministry of the Interior, an urban renewal project can only be implemented if two thirds to nine tenths of the residents in the area agree to the project.

"The dreams of secondhand housing investors have been shattered,"he told reporters on the sidelines of an event to promote virtual shops.

In addition, Wang predicted that secondhand housing transactions in Taipei will drop from 6,000-7,000 per month to 4,500.

(By James Lee)