Old real estate stocks are making a hot rebirth after 30 years

Taiwan\’s asset prices have been stable and upward for a long time. Even though the performance of established asset stocks may not be stable, if they can effectively activate their assets, they will bring huge profits and cash flow, which will benefit the company\’s future development.
[Text/Huang Junchao] There are only 23 million people and 3.3 million acres of land. With an area of ​​60,000 square kilometers, Taiwan is already the world\’s second-largest economy. The U.S. Financial Monthly Global Finance ranks Taiwan the 14th richest country in the world based on purchasing power evaluation (PPP). Allianz Group ranks Taiwan in the world based on net financial assets per capita. The fifth richest country ranks 14th. 160,000 euros (approximately NT$4.93 million) The UBS Global Wealth Report points out that Taiwan\’s total assets account for about one-third of the world\’s total wealth. Two percent is about the same as India, which has a population of 1.4 billion, and the quasi-rich group is about 9.6 million people. Four out of ten people meet the definition. Various reports show the same thing. Taiwanese people are really rich.
Taiwan\’s housing prices continue to rise. According to the latest data from the Accounting and Statistics Office, the wealth of the top 20% of Taiwan\’s households in 2021 was NT$51.33 million, compared with the bottom 20% of households\’ wealth of NT$770,000. The gap was 66. The average of the nine times was 16.38 million yuan, and the median was 8.94 million yuan. It was also announced that the average net worth of assets minus liabilities per person increased from 5.39 million in 17 to 68 in 2022. Among the items that increased by 80,000 yuan, real estate accounted for the highest proportion, followed by securities, life insurance reserves, and pension reserve items.
It has been more than 35 years since the shellless snail movement began in 1989. Even though wages have stagnated, too many vacant houses, geopolitics and many other factors, and there are countless reasons why people cannot afford to buy a house, housing prices are not prone to plummeting.
According to the Ministry of Interior’s real estate information platform, the national house price-to-income ratio in the fourth quarter of 2023 was 9. Ninety-seven times, including 15 in Taipei City. Seven times, New Taipei City 13. ○Nine times and Taichung City 11. Seventy-four times is the highest among the top three, and Tainan City, Kaohsiung City, Hsinchu County, Yilan County, Changhua County and Nantou County all exceed nine times.
The numerical value seems to be good, but the devil is always in the details. Putting the yolk, egg white, and egg shell together is not accurate in calculation.
Housing prices continue to rise. In addition to the fact that Taiwanese people are very wealthy, from another perspective, data from the Statistics Department of the Ministry of the Interior shows that at the end of March 2003, there were 821 housing prices nationwide. The total number of owners of 20,000 houses alone is 583. There are 753 of the 960,000 people. Seventy-four thousand houses, ninety-one. Seventy-nine percent are held individually by natural persons, and seventy-seven percent are held by natural persons. Three to fifty thousand houses, ninety-three. Eighty-five percent.
Taiwan’s home ownership rate reaches 84. 7% compared to 65% in the United States. 8%, Britain 65%. 2%, June 4, France. 1%, Japan June 1st. 2%, May Day in Germany. 1% is significantly higher than 1%. I really hope that Taiwan’s housing prices will fall sharply. It is basically a small number of housing prices. Falling housing prices are usually caused by economic problems, and there will be chain reactions, even deflation, coupled with policies to promote speculation but not housing. Factors such as long-term low interest rates and other factors. In the first quarter of this year, the latest data from the four major house price indexes including National Chengchi Yongqing, Xinyi, Tsinghua Anfu and Ministry of Interior housing prices all set record highs.
From the perspective of commercial development benefits, the source of the 50 billion real estate is land. Taiwan is small, densely populated and limited by terrain. 90% of the population lives in 17. Five percent of the land and up to 50% of the population live in one. Six percent of the land area is inhabited by enterprises, which has led to a rapid increase in land demand. The prices of Made in Taiwan and Made in China are definitely not the same. However, land prices in Taiwan are relatively higher than other countries such as Southeast Asia. The cost of setting up factories is also higher. However, based on Taiwan’s assets If there are no accidents, it may not be uneconomical to have a high probability of price increase.
Most of the asset stocks listed on the OTC market have long holding times and relatively low acquisition costs. Therefore, if they can be revitalized through various methods such as disposal, leasing, development, etc., they can bring huge business opportunities. Even if they are simply revalued, there will be opportunities. However, many companies among them have unstable profit performance or even long-term losses. The dividend policy is inconsistent and the stock price to net value ratio is relatively low.
(Full text not completed) Source: Issue 2299 of \”Xiantan Investment Weekly\” For more exciting content, please go to \”Xiantan Investment Weekly\”

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