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Tycoons' visit to boost Taiwan property

Eight mainland property tycoons are planning to visit Taiwan next week in a trip tipped to give the island's commercial property market a big boost.

The tycoons - including the mainland's wealthiest man, Yeung Kwok-keung of property developer Country Garden Holdings, Li Silian of R&F Properties, Chu Mang-ye of Hopson Development Holdings, and Pan Shiyi of Soho China - are to arrive on Monday for a week.

Officials from Taiwan's Mainland Affairs Council said yesterday local developers had invited the group with its consent. They declined to comment when asked whether the trip had anything to do with a government proposal to ease restrictions on mainland investments in Taiwanese real estate.

One of the local sponsors, who asked not to be named, said the tycoons were to visit Taipei, Taichung in central Taiwan, Kenting in southern Taiwan and Aoti in northeastern Taiwan to survey the commercial property market before deciding whether to invest in leisure and tourism facilities.

Some of the tycoons visited central Taiwan last year and were briefed on property developments by Taichung city officials.

Taiwanese President Chen Shui-bian's government is considering exempting mainlanders from having to prove the origin of their capital and allowing them to borrow up to 50 per cent of a property's value from Taiwanese banks for investments in commercial real estate. They would also be allowed to stay up to 90 days per visit, up from 10 days.

Ted Ying, vice-president of Shining Group, one of the leading property developers in Taiwan, said the mainland tycoons' trip would have positive impact on the commercial property market. 'It will give a further boost to our property market, similar to the impact of investments from Hong Kong on our real estate values after the government approved such funds several years ago.'

Mr Ying said property prices were lower than in some comparable areas, which would encourage mainland investors if the restrictions were lifted.

He said he was optimistic the government would further open the property market to mainland investors after the March 22 election because both the ruling Democratic Progressive Party presidential candidate Frank Hsieh Chang-ting and his opposition Kuomintang opponent, Ma Ying-jeou, favoured more liberal economic links with the mainland.

Market dealers said the scale of the commercial property market is expected to double as soon as the restrictions are eased.

However, a Taiwanese academic said relaxation would do little to boost the residential property market. 'Supply is much bigger than demand, and the relaxation will only benefit the commercial sector,' said Chang Chin-urh, land administration professor at National Chengchi University.

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