Kaohsiung City's 2021 current land value was reviewed and approved by the Land Price and Standard Land Price Appraisal Committee after evaluating various influencing factors and market trends on December 21, 2020. The city-wide current land value will be adjusted by 0.76% upward on average for 2021.
With an overall look at the development of the city's real estate market, statistics show that the number of transactions as of the end of November this year (2020) was 40,180, a slight decrease of 365 or around 0.9%, from 40,545 in the same period last year. Due to the impact of the COVID-19 pandemic at the beginning of 2020, the overall social and economic development came to a standstill. However, in the third quarter, due to the slowdown of the pandemic, the government actively introduced policies to expand the domestic demand market, and rolled out the investment projects to attract overseas Taiwanese business people to make investment in Taiwan, thereby attracting overseas funds to the country. As a result, the transaction volume in the real estate market in this city showed an upward trend. As per the statistics, the number of transactions in the third quarter of 2020 was 12,210, an increase of 2,166, or around 21.57%, from 10,044 in the same period last year.
Chen, Kuan-Fu, Director of the Land Administration Bureau, Kaohsiung City Government, stated that the current land value reflects the trends and construction results in the real estate market. This year, affected by a low interest rate environment, abundant market funds, the rigid demand for owner-occupancy in the city, and the housing projects gradually sold, the real estate transaction prices have risen slightly, so the current land value in 2021 will slightly increase on average. The main adjustments focus on areas with major construction projects completed, such as along the line of the Railway Rapid Transit Systematization Project, viaduct demolition, underpass filled in, green corridors, and redevelopment zones. In addition, due to the intensity of land use control, the current land value of the areas with the category of the licensed land for non-urban land development changed is adjusted. Meanwhile, the area of frequent transactions is the main area for adjustments.
As per the appraisal results of the current land value for 2021, the city's average rate of adjustment was 0.76%, and the top five administrative districts are Qianzhen District (1.57%), Fengshan District (1.21%), Gangshan District (1.16%), Luzhu District (0.94%), and Gushan District (0.93%). Except for the Luzhu District, in which the increase is attributed to the fact that the category of 41 hectares of the licensed land for non-urban land development was changed, the increase of the current land value in all administrative districts were mostly due to the booming market or due to the completion major construction projects and the redevelopment zones, to reflect the market condition or construction results.
In 2021, the city's zone with the highest land price is where the Kaohsiung Far Eastern Department Store is located at the intersection of Zhongshan 2nd Road and Sanduo 4th Road in southern Kaohsiung, which has maintained the position for eight consecutive years. The current land value is maintained at NT$570,000 per square meter, or NT$1.88 million per ping. The zone with the highest land price in northern Kaohsiung is still in the area of Boai 2nd Road near the Hanshin Arena Shopping Plaza. The current land value thereof is maintained at NT$440,000 per square meter, or around NT$1.45 million per ping. The zone with the lowest land price is the state-owned forest land bordering Taitung County, Hualien County, and Nantou County with the current land value at NT$41 per square meter.
"The current land value" is the basis for reviewing the land value increment tax in the cases of land transfer and registration of lien right. It also aims to reflect the land value reasonably and to achieve the balance and fairness of the city-wide land prices. The current land value adjustments are all made after visits, collection of transaction cases, and estimations based on the information on real prices registered by land evaluation personnel of local land offices. The adjustment results will be announced on January 1, 2021. The public can visit the website of the Land Administration Bureau of the government (https://landp.kcg.gov.tw) or visit the local land offices of the city for inquiries.