28 Feb '11, 9am

Residential property prices reach seven-year high in Taiwan

TAIPEI: Residential property prices in Taiwan have reached a seven-year high, triggering fears of a housing bubble. The boom is fuelled by speculation that Chinese capital will continue to flow into Taiwan and the high property prices could spell trouble for the ruling Kuomingtang (KMT). For Eileen Chang, a staff worker at a local union, her dream of buying a home in Xinbei City has become harder to achieve, with property prices rising by 30 per cent. "Based on my current wage, it will take me 20 years or more to buy a small apartment in Xinbei City. But to buy one in Taipei, many can't afford it, even if it takes them a life time. And this is a problem that many wage workers are facing in Taiwan," she said. Miss Change is just one of many young Taiwanese facing such a dilemma, and the problem could get worse. Taiwan's home prices have hit record levels as more investors s...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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