The latest transaction price of "Runtai Dunren" in Renai Circle, Bei City, fell out of the "luxury club with a unit price of 2 million". (Photo by reporter Xu Yiping)
[Reporter Xu Yiping/Report from Taipei] Even though the unit price of luxury homes in Taiwan has broken through the "3 million yuan defense line for luxury homes" set by former central bank president Peng Huainan, the aging of some well-known luxury homes and the continuous release of new luxury homes have caused some members of the former "2 million yuan luxury home club" to fall out one after another.
Real estate industry players pointed out that the most famous transaction was the unit on the 21st floor of Building D of "Renai Dibao" on Renai Boulevard in Bei City. In April, it was sold for a total price of nearly 524 million yuan. After deducting the number of parking spaces and the unit price, the unit price per square meter was about 1.92 million yuan, which directly fell below the 2 million yuan per square meter mark.
The last actual price of this luxury house was revealed about 5 years ago, that is, in August 2021. The unit price per square meter on the 12th floor was about 2.3739 million yuan. At that time, it was still firmly in the "luxury house club with a unit price of 2 million". However, the luxury house officially entered its 20th year of age last year.
The one that has recently fallen out of the "luxury house club with a unit price of 2 million" is "Runtai Dunren" in Renai Circle, Beijing City. According to the Ministry of Interior's real price website, this luxury house will have one real price each in 2025 and 2026. The former is on the 5th floor and a demolition car. After comparing the number of square meters and the price, the unit price per square meter is about 1.9 million yuan, which is a rare drop below 2 million yuan in the unit price of this luxury house. This year, the unit price per square meter on the 16th floor was about 1.9337 million yuan. There were two consecutive transactions that fell below the unit price of 2 million yuan.
Real estate industry insiders pointed out that the above-mentioned two luxury houses are slowly getting older. Among them, "Dibao" is 21 years old this year and "Runtai Dunren" is 18 years old. In addition, the latest real price of the "Dijing Water Garden", a luxury property on the Dazhi waterfront in Bei City, was revealed in August. The unit price per square meter on the sixth floor was about 1.4853 million yuan. In December last year, the unit price per square meter on the second floor was about 1.477 million yuan. There were two consecutive transactions with unit prices of less than 1.5 million yuan. Compared with the past when it stood at 2 million yuan per square meter, there is a significant gap. The waterfront luxury house is already 26 years old.
Huang Shuwei, director of the real estate owner representative service department of Colliers International, said that the price drop of senior luxury homes is mainly due to the lack of stable and strong rigid demand for buying support and relatively high liquidity for general residences. In addition, the above-mentioned luxury homes are all over 15 years old. Not only have the maintenance and replacement costs of mechanical and electrical equipment increased significantly, but the physical conditions of the buildings have begun to have various minor problems, and the structural warranty period has even expired.
Next, new luxury homes have accumulated past environmental changes and market demand. Whether it is in terms of construction, safety, privacy, facilities, services, scale, total price, etc., product positioning has the shortest learning curve, strong market competitiveness, and high acceptance, driving the wave of house replacement.
Finally, most of the above-mentioned luxury homes were due to the wave of return investment from Taiwanese businessmen and the sharp reduction in the inheritance tax after 2008. They hit the price wave with limited supply in the market. However, in 2012, the central bank began to restrict loans for high-priced homes, and the local government's luxury property tax in 2015 further loosened the avalanche of transaction volume in the luxury home market. Under the rebalancing of supply and demand, it will naturally accelerate the return of old luxury homes to market price fundamentals.
