It is my pleasure to be invited to the Sixth Asia Pacific Real Estate Congress, held by the International Real Estate Federation (IREF) which was established in 1971. Over the past three decades, the International Real Estate Federation Taiwan Chapter (FIABCI-TAIWAN), one of the founding members of IREF, has maintained close and cordial relations with other members of this important organization. Based upon the spirit of “consolidation, exchange, and connection”, the IREF provides its members and realtors from all over the world with opportunities to come together, exchange views and learn from each other through holding conferences of different types. On this auspicious occasion of the Sixth Asia Pacific Real Estate Congress, held in Taichung City, Taiwan, I would like to extend, on behalf of the government and the 23 million people in Taiwan, our warmest welcome to each distinguished participant.
A flourishing real estate industry serves as an important indicator for a nation’s economic development. In an effort to revive the economy and reinvigorate the local real estate market, my administration took the initiative to halve the land value increment tax for two years, starting on February 1, 2002, despite the absence of a general consensus at the Economic Development Advisory Conference. Knowing the importance of such an initiative in rejuvenating local property market, I instructed the Cabinet to expedite its implementation and to garner the support of our Legislature. The recently approved Statute on Real Estate Securitization, a legislation which the realty business sector has been lobbying on for more than a decade, offers diversified channels for investment in the property market. The passage of this bill in an extra session this past July was made possible with the perseverance and collective effort of the executive and legislative branches. Meanwhile, this government also encourages the private sector to invest in urban renewal projects so as to help create a better living environment. Furthermore, as part of government efforts to help lessen homebuyers’ expenses, an additional NT$280 billion has been allocated to continue the preferential home-loan packages. With the goal of improving domestic investment and business environment, this government also plans to invest NT$500 billion on infrastructure projects over the next five years. These important projects will be carefully planned, with a comprehensive implementation strategy. I hope the members of the Legislature, irrespective of their party affiliation, will support and approve these projects. The aforementioned measures exemplify our determination to revive the real estate market and speed up the economic recovery.
Statistics indicate that the sales ratio of advance-sale housing units in northern Taiwan reached 62 percent by the end of last August, and the number of visitors to housing construction sites on holidays is also on the increase. These figures demonstrate the increasing confidence in Taiwan’s economic outlook. To further strengthen our economy, this government will expedite the removal of obsolete laws and regulations.
Meanwhile, the 345-kilometer-long Taiwan high-speed railway system, so far the top single BOT (Build-Operate-Transfer) case in the world in terms of investment capital, is being constructed on schedule and will be fully operational by October 31, 2005. By then, it will take only 45 minutes to travel either from Taipei to Taichung, or from Kaohsiung to Taichung, making it possible for a “one-day commuting network.” The development of the neighboring areas at the Taoyuan, Hsinchu, Taichung, Chiayi, and Tainan stations on the High Speed Rail System are expected to offer new economic opportunities and stimulate new urban development. This development will help boosting the real estate market of Taiwan and change the landscape of its urban and rural areas.
It is of particular significance that the Sixth Asia-Pacific Real Estate Congress is being held here in Taichung City. Located at the axis of Taiwan’s north-south transportation network, the city has a temperate climate and picturesque scenery. In addition, a world-class museum will be built in Taichung in the not too distant future. To ensure the earliest possible kickoff of the project, Premier Yu Shyi-kun has recently promised Taichung Mayor Jason C. Hu that the central government will subsidize NT$5 billion for the construction of the Guggenheim Museum Taichung Branch. For a long period, our national development has tended to focus on the north at the expense of the south, while overlooking the central region. Nevertheless, I have always had central Taiwan in my mind. The “three thirds”—the third science-based industrial park, the third international airport and the third special municipality, and the planned Guggenheim Museum all represent my commitment to the development of the City of Taichung, in the hope that it will become an international metropolis and a major economic hub in central Taiwan.
In closing, I would like to once again thank the conference sponsors for their kind invitation. I am confident that through the exchange of experience and expertise, you will all contribute to the formulation of governmental policies on real estate industry in the Asia-Pacific region and around the world. I wish the Sixth Asia pacific Real Estate Congress great success and each of the participants and guests good health and happiness. Thank you.