Stock Market's Capital Magnet Effect: Hsing Fu Fa Expects No Clear Real Estate Recovery Within Six Months

(CNA reporter He Xiu-Ling, Taipei, June 17) Hsing Fu Fa held its shareholders' meeting today and completed a full board reshuffle, appointing Wang Jiao-Qi, a former media professional and ex-General Manager of Hwa Fong Rubber Industrial, as its new chairman. Hsing Fu Fa spokesperson Liao Zhaoxiong stated that the most difficult period for the real estate market has passed, but with the current stock market continuing to surge and drawing capital toward tech stocks—a phenomenon known as the 'capital magnet effect'—the company expects the real estate market will not see a clear recovery within the next six months.

Today's shareholders' meeting concluded with a full board election, and the new board elected Wang Jiao-Qi as chairman. Hsing Fu Fa President Zheng Qin-Tian and his wife Zheng Xiu-Hui will continue serving as directors.

Regarding the outlook for the second half of the year, Liao Zhaoxiong acknowledged that the stock market is currently extremely active, with capital heavily concentrated in tech stocks. He predicted that the real estate market is unlikely to show significant improvement over the next six months. However, he noted that once stock investors begin taking profits and seek new investment channels, capital could flow back into residential or commercial real estate, potentially returning the property market to a growth trajectory.

Hsing Fu Fa remains optimistic about the future potential of Taiwan's commercial office market. Liao highlighted the robust development of Taiwan's technology sector, particularly the expansion of artificial intelligence (AI), semiconductors, and related industries, which is expected to drive 'very strong' demand for office space—becoming a key driver supporting the real estate market.

On the commercial real estate front, Liao stated that Hsing Fu Fa has launched a dual-operation strategy this year, combining sales and leasing. Moving forward, the company will no longer rely solely on profit from property development and sales but will instead build a dual-revenue engine through continuous development and long-term ownership, generating both project sales income and stable recurring revenue. (Editor: Zhang Liang-Zhi) 1150617