The Taiwanese market, currently experiencing something of a lull after a promising 2004, could receive a welcome boost if the government pushes through proposed amendments to the Real Estate Securitization Act.
As it stands, the current law only allows assets with economic value -such as land, buildings, roads and parking lots - to be securitized. However, the changes to the Act would also see property under development or construction and undeveloped land to be included in transactions. Undeveloped land includes anything currently unused that does not generate revenue.
The addition of these assets is seen as necessary in boosting real estate company liquidity, with some analysts estimating it would increase the annual production value of the real estate sector by NT$300 billion ($9.6 billion).
According to some reports, the Bureau of Monetary Affairs has given its provisional approval to the revisions, but is still finalizing the exact assets to be included. Once completed, it will submit a draft act to the Financial Supervisory Commission, which will then present the amendments to a meeting of Taiwan's Executive Yuan, the government's legislative body.
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