Citigroup and Taiwan Commercial Property
Citigroup (NYSE:C) said Taiwan commercial property prices could rise as high as 15 percent over the next year, based on the upcoming signing of a trade agreement between the two countries.
According to Citigroup analyst Dave Chiou there are a lot of companies from mainland China who want to set up offices in Taiwan after the deal is signed, which is sure to increase the value of properties in the country.
The agreement mentioned is in regard to what is being called an economic cooperation framework agreement or ECFA, which will lower tariffs between the two countries and generate more investment between them.
Those close to the situation say even after signing the agreement though, it'll be a gradual entry into the country because of the inherent animosity between the two countries.
Uncertainty about the market and regulations in Taiwan could also make it a slow process. But if 15 percent is slow, they could really experience a commercial property bubble over the next several years once the uncertainties are removed.
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