Real Estate Recovery? Far Eastern and Xianglin Stocks Rise Over 5%, Experts Warn It's Temporary

Today (25th), construction stocks saw a broad increase, with Far Eastern (5522) and Xianglin (5531) rising approximately 5.87% and 5.91% respectively. Experts indicate that this is likely a "temporary" situation.
Far Eastern opened at 59.4 TWD this morning, up by 5.69% or 3.3 TWD, finishing at 58 TWD; while Xianglin opened at 11.15 TWD, briefly climbing 5.91%, closing at 11.00 TWD. Senior Taiwanese stock analyst Lin Hsin-fu pointed out that this stock price increase may merely be a rebound after a deep drop, and Xianglin's rise could be related to recent redevelopment projects, showing promising development potential.
Lin noted that the current real estate market is not doing well, with both bank loans and presale conditions being poor, indicating that what we see now is an issue of a rebound after a fall. He emphasized that the real estate sector is closely connected with the economy, and there are no signs of banks relaxing credit policies, suggesting that overall, real estate still faces pressure compared to other sectors.
Looking ahead, Lin believes it is essential to observe whether the volume of new offerings stabilizes over the next two years and whether presale conditions improve. If these conditions stabilize, the operational outlook for the next couple of years could remain relatively stable. Should stock prices depreciate significantly and yields rise, it may be worth considering long-term investments.