TSMC's plan lifts November housing transactions in Kaohsiung to 6-year high

12/04/2021 01:56 PM
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CNA file photo
CNA file photo

Taipei, Dec. 4 (CNA) Housing transactions in Kaohsiung rose to a six-year high in November after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) announced plans to build a wafer fab in the southern city, according to statistics released by the city's authorities.

In November, transactions of homes, shops and offices totaled 4,715 units in Kaohsiung, up 15.6 percent from a month earlier and also up 26.1 percent from a year earlier.

The month-on-month and year-on-year growth in Kaohsiung top that of the six largest cities in Taiwan, data compiled by the six city governments showed.

Lin Chia-fu (林家福), head of a Kaohsiung outlet of Taiwan Reality, said TSMC's investment is expected to create a large number of job openings to attract more and more tech professionals to move to the city, paving the way for increasing home buying as well as home rental.

In November, TSMC, the world's largest contract chipmaker, announced a plan to build a wafer fab in southern Taiwan's Kaohsiung city, using its 7 nanometer and 28nm processes. Construction of the Kaohsiung plant is scheduled to begin in 2022 and mass production is expected to start in 2024.

While TSMC did not disclose the financial terms for the new Kaohsiung plant, its board approved a capital budget of about US$9.036 billion and the chipmaker will assign part of the budget to the Kaohsiung production site.

In fact, market analysts said, the TSMC investment plan has been circulated in the market for some time, and even before its formal announcement, a lot of home buyers as well as property investors had jumped into the market by taking advantage of relatively low home prices in the city.

Lin said Kaohsiung has served as an industrial city in Taiwan and is expected to transform itself into a high-tech base in the country with the presence of TSMC.

TSMC is expected to build the new wafer fab in Nanzih as the city government is preparing a piece of land which used to house a naphtha cracking plant owned by state-owned oil supplier CPC Corp. for the chipmaker.

In November, transactions of residential and commercial property in the six biggest cities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung -- totaled 25,954 units, up 9 percent from a month earlier and up 5.5 percent from a year earlier, the statistics showed.

The area near the planned site of TSMC
The area near the planned site of TSMC's new chip manufacturing site in Kaohsiung. CNA file photo

Lang Mei-nan (郎美囡), a research manager of Great Home Realty, said the property market continued to benefit from low interest rates, and concerns over inflationary pressure, which has made many people in Taiwan prefer to park their funds in the property market.

Sales of homes, shops and offices in Taipei, the most closely watched property market in Taiwan, stood at 2,711 units in November, up 10.8 percent from a month earlier, but down 17.1 percent from a year earlier.

Property transactions in New Taipei City in northern Taiwan hit 7,113 units, up 10.7 percent from a month earlier and up 17.6 percent from a year earlier, while sales in Taoyuan, also in the north, reached 4,426 units, little changed from a month earlier but up 3.5 percent from a year earlier.

Transactions in Taichung City in central Taiwan, totaled 4,762 units in November, up 8.8 percent from a month earlier but down 8.3 percent from a year earlier, while sales in Tainan, southern Taiwan, stood at 2,227 units, up 8.2 percent from a month earlier and up 7.7 percent from a year earlier.

Jessica Hsu (徐佳馨), head of the research department at real-estate agency H&B Business Group, said the local property market is expected to get a further boost from ample liquidity, expecting residential and commercial property transactions to top 350,000 units in Taiwan this year, compared with 326,589 a year earlier.

(By Tsai Peng-min and Frances Huang)

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