Lawmakers should attach clauses that would permit loss-making transfers among joint buyers for loan arrangement reasons to an amendment to the Equalization of Land Rights Act (平均地權條例) that aims to clamp down on speculative buying in the property market, Shin Ruenn Construction Co (新潤機構) chairman Ben Huang (黃文辰) said yesterday.
Huang, who is also vice chairman of the New Taipei City Real Estate Development Association, told a news conference that it is odd that the amendment would subject property purchases by legal entities to prior approval, as it would contravene free market principles.
The bans could dampen buying interest and stretch transaction periods, but are unlikely to trigger substantial price corrections given spikes in land, building materials and labor costs, Huang said.
Photo: Chen Yung-chi, Taipei Times
“Shin Ruenn would stand by its construction schedule despite economic uncertainty and unfavorable legislation,” he said.
Developers and builders would defend the 20 percent profit margin if 25 percent gains turn out to be unfeasible, Huang said.
Developers would price their projects more reasonably, rather than engage in price concessions to facilitate deals, he said.
A flat market is also favorable for developers that seek to build land stock, he said, adding that land prices have been unreasonably high in recent years.
The company said its affiliated Shin Ruenn Development Co (新潤興業) is to post NT$35.5 billion (US$1.16 billion) in profit over the next four years in line with a sustainable business strategy, and it expects the ongoing economic slowdown to make property prices more reasonable next year.
The Taipei-based developer is due to recognize profit from joint ventures at two pre-sale projects, Good Life of Metro Heart I and II in Taoyuan’s Luzhu District (蘆竹), Shin Ruenn Development chairman Kuo Chang-geng (郭長庚) said.
The projects near the Taoyuan International Airport MRT Line have sold out, and Shin Ruenn Development could divide a profit of NT$1.23 billion upon their completion next year, Kuo said.
The company has sold 99 percent of the Shin Ruenn double complex in New Taipei City’s Linkou District (林口) and posted a 94 percent sales rate for the Manor House in Taoyuan’s Dayuan District (大園), he said.
The developer has participated in the development of Fancy World in New Taipei City’s Tamsui District (淡水) and Sky Forest in Taipei’s Nangang District (南港).
Those projects have sales rates of more than 80 percent, which meant the company has divided NT$930 million and NT$5.22 billion for each, Kuo said.
Sales rates of more than 50 percent give developers and builders confidence to continue with construction without worrying over cash flow, profitability and other issues, Huang said.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS