The property market in Taiwan is set for a boom if president-elect Ma Ying-jeou can improve relations with mainland China and stimulate the island's sluggish economy, analysts say. Market-watchers expect a rise of 20 percent or more by the end of 2008 if Ma keeps his pledge to liberalize economic exchanges with China – and some say there are already signs of soaring prices since his election last month. “Luxury residential property prices in certain districts of Taipei jumped one-third right after Ma's victory,” said Chang Hsin-ming, a marketing consultant with ERA Real Estate, based in the United States. He said site visits by potential homebuyers were up 30-40 percent in recent weeks, with many believing that the tense political rivalry with China will ease under Ma's leadership. Ma, who takes office on May 20, campaigned on a vow to help create a “commom market” with China across the Strait, improving trade and tourism by lifting barriers to the free flow of goods and people between Taiwan and the mainland. Since the early 1990s, Taiwanese investors have channeled an estimated 150 billion US dollars to China, which has become the island's largest trading partner and biggest export market. Doing away with trade barriers would increase the flow of money in the other direction, and allow Taiwan to take better advantage of the vast new wealth being created in China today, say analysts. A survey by North Rehouse, a Taipei property firm, found that 67 percent of mainland investors were willing to buy real estate in Taiwan once restrictions are eased – and predicted prices would go up 30-50 percent by year's end. Despite the decades of official hostility, there are many Taiwanese based on the mainland – and they will also be looking to channel funds back to the island, Chang said. __
