The chairman of Pacific Housing, Sun Baoguo, believes that TSMC will drive local real estate wherever it goes, but the Kumamoto market requires a long-term perspective and should not focus on short-term gains.

With TSMC (2330) establishing a factory in Kumamoto, Taiwanese enterprises are following suit. After 40 years in operation, Pacific Construction (2506) Group announced today (the 20th) that it has signed a brand licensing agreement with 'Pacific Real Estate Co., Ltd.' and 'Pacific Real Estate Development Co., Ltd.' to officially enter the Japanese market.

Sun describes Taiwan’s current housing market as 'dismal'. However, he is optimistic about the economic growth in Kyushu driven by TSMC's factory establishment. He noted, 'Properties in Kumamoto can be acquired for around 7 million yen, and Japanese people still don’t fully comprehend the potential of TSMC. We plan to open at least five franchise stores in the Kyushu region within five years!'

As TSMC expands its global footprint, Japan's first factory has been established in Kumamoto, with a second factory under development and plans for a third factory underway. This is expected to attract over 3,400 semiconductor professionals and will inject new vitality into the local housing market. According to a report from the Kyushu Economic Research Association, the semiconductor industry chain is projected to generate approximately 6.85 trillion yen in economic benefits for Kumamoto Prefecture between 2022 and 2031.

Pacific Housing's entry into Japan focuses on the Kyushu region, where Sun believes there are significant investment opportunities. He expects the region to develop a similar industrial cluster effect as Hsinchu Science Park, driving rapid growth in the overall economy and real estate market. With the weakening housing market in Taiwan and the rising enthusiasm for real estate in Kumamoto due to TSMC's factory, it is an opportune time for both investors and consumers to enter. Several groups, such as Wei Ge, Qing Jing Lin, San Di, and Yu Yi International, have already begun laying the groundwork.

Sun emphasized, 'In light of the uncertain market conditions in Taiwan, many investors are turning their attention to Kumamoto, where a townhouse can be acquired for over 7 million yen, and the rental yield can reach 10% amidst relatively low prices.' However, he stressed that the focus should be on long-term gains in Kumamoto rather than short-term returns.

Wu Honghui, chairman of Topwin International Asset Management and a franchisee of Pacific Housing, noted that property prices in Kumamoto have increased by 20% over the past five years, mainly in industrial land. He believes that the next wave of increases will be in residential land, with current land prices at about 50,000 TWD per ping. Given the population growth and Japanese companies directing funds toward Kumamoto, the future looks promising.

Regarding Taiwan's housing market, Sun pointed out that recent credit controls by the central bank and global economic uncertainty have created a relatively conservative atmosphere. 'The peak viewing season during the 329 holiday saw attendance drop by at least half, indicating a dismal situation!' He further noted that in this uncertain market, both buyers and sellers are hesitant, with sellers fearful not of rising or falling prices, but of having no one to see their properties. 'I am very concerned about the future of real estate in Taiwan!' he remarked.