Tatly: Real Estate Market Has Hit Bottom, Stock Market Profits Expected to Flow Back in Second Half

(CNA reporter Ho Hsiu-ling, Taipei, June 16) Tatly Construction Chairman Hsieh Chih-chang stated that the Central Bank Governor Yang Chin-long's recent declaration that 'property credit controls will stop here' has significantly boosted market confidence. He believes the worst period for the real estate market is over and expressed 'great confidence' in its development in the second half of the year. Additionally, he noted that as listed and OTC companies begin distributing dividends and investors profit from the stock market, part of this capital may be reallocated back into the property market.

Tatly Construction held its annual shareholders' meeting today. Hsieh pointed out that the Central Bank will convene its board and supervisory meeting on the 18th, a conclusion that the market is eagerly anticipating. Recent statements by Governor Yang have led the market to interpret that an eighth round of property controls will not be implemented. He emphasized that the government's previous anti-speculation measures have already shown results, and property prices still have support. While a rebound depends on multiple factors, the overall real estate market has emerged from its trough.

Hsieh noted that the Taiwan stock index has surpassed 45,000 points, and many investors, having accumulated wealth in the stock market, will begin considering asset allocation strategies. Real estate remains a key asset class, and as listed companies distribute cash dividends, 'once people have money in their pockets, funds will inevitably flow into the property market,' potentially driving a recovery in buying momentum in the second half.

Regarding recent price concessions by some developers, Hsieh stated that while many builders have adjusted prices downward in response to market changes, this is not a sharp decline but a return to previous pricing levels—a normal correction following a cooling in market demand.

On future product strategy, when asked whether the company would shift toward luxury developments, Hsieh stated that Tatly will not enter the super-luxury segment of homes exceeding 100 ping (approx. 330 sqm). The ultra-high-net-worth buyers at the top of the pyramid remain a niche market. Future projects will continue to focus on owner-occupant and upgrade-type housing, with site selection guided by industrial development and transit-oriented development (TOD) principles.

He added that Tatly will continue land acquisition and participation in government-led urban renewal and MRT joint development projects. The number of such public projects has more than doubled compared to three to four years ago, and the company will prioritize regions with transportation infrastructure and industrial growth potential.

Regarding its project in Beitou Science Park (Beishike), Hsieh noted that NVIDIA's plan to build its Taiwan headquarters in T17 and T18 has boosted the project's sales rate from an initial 20% to 75%. The building is expected to receive its occupancy permit in September and be completed and handed over this year. (Edited by Lin Chia-hsien) 1150616