Due to the topic of Huida's rezoning in Beishike, the regional real estate market is heating up. (Picture/File photo, taken by reporter Zhu Yuqiao)
The rapid expansion of the AI industry will not only change the landscape of the technology industry, but may also reshuffle the purchasing power of Taiwan’s real estate market! Li Tongrong, a real estate market trend expert, pointed out that AI capitalization drives the accumulation of high-salary income for technology talents and the accumulation of capital gains in the stock market. In the future, the real estate market will form a dual engine of "high-salary technology + stock market profits". The upstarts in technology will support the demand for self-occupation around technology clusters, while the new rich who make profits in the stock market may divert some of their funds to elite housing, becoming an important purchase in the next wave of real estate market.
Li Tongrong analyzed that the first force is the high-paid technology upstarts. With the development of semiconductors, advanced packaging, servers and related supply chains, high salaries, bonuses and dividends have improved the ability of technology talents to buy houses, driving the demand for first-time buyers and house replacements around the technology clusters of Hsinchu, Zhubei, Taichung, Tainan and Kaohsiung. Another force is the new wealth gained from the stock market. Investors, business operators and some employees who hold technology stocks accumulate financial assets through stock appreciation. When the assets reach a certain scale, they may transfer part of the funds to real estate as an option to diversify risks and long-term asset allocation.
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Li Tongrong believes that the stock market and the real estate market may form a new capital flow model in the future. The stock market is responsible for creating wealth, and the real estate market has become the choice for some high-asset groups to preserve assets. However, profits from the stock market do not necessarily flow into the real estate market. It remains to be seen whether capital gains can be converted into actual demand for home purchases.
In terms of real estate purchase areas, Li Tongrong proposed the "double-core real estate purchase theory" and believed that in the future, a model of "purchasing living business districts in science and technology cities and allocating assets in capital cities" may emerge in the future. Technological talents will buy houses in technology clusters such as Hsinchu, Taichung, Tainan and Kaohsiung due to work, commuting and family needs. The newly wealthy who have made profits in the stock market may value Taipei's financial, commercial, educational and medical resources. In addition, the supply of land in prime locations is limited, and they will be listed as long-term asset allocation options.
In addition to changes in housing purchase areas, Li Tongrong also proposed the concept of "house price-to-asset ratio" and believed that the traditional housing price-to-income ratio may not fully reflect the housing purchasing ability of high-asset groups. He gave the example of two families with the same annual income of NT$3 million, but one of them holds NT$50 million in usable financial assets. Their ability to purchase high-priced housing is obviously different. In the future, in addition to income, the net usable financial assets of the family should also be included in the assessment.
In addition, the new generation of tech-savvy high-salary and high-asset buyers may have housing requirements that extend from location to construction quality, smart management, energy efficiency, air quality, sound insulation and property management. Builders’ competition is no longer just about land location, but also includes long-term living quality.
Li Tongrong pointed out that AI capitalization does not mean that everyone is equally wealthy. High salaries in technology and capital gains from the stock market are concentrated in specific groups. In the future, the housing market is unlikely to experience a general rise. High-asset core residences may benefit from asset allocation needs, while high-quality residences in technology clusters will be derived from industry income.
