To stimulate consumption in Taichung, the City Government launched a Shopping Festival with various prizes including a NT$10 million property.
Taichung Shopping Festival is underway! People that spend NT$500 in Taichung can register online to win a wide range of prizes including a new, tax-free home. Many say this is too good to be true.
NT$500 in exchange for a house doesn't seem like a fair exchange (value-wise). They might have to make the rules and regulations more clear. Where will the (prize) money come from, so that residents can enjoy this benefit? Stuff like that.
The Taichung City Government worked with two local construction associations on the promotion. The 30-ping home is valued at over NT$10 million, or NT$230,000 to NT$250,000 per ping and is exempt from stamp, land appreciation, deed and income taxes. This cost will be absorbed by 80-plus members of construction associations.
The construction associations will absorb the cost of the home, parking space and taxes. They believe in mutually benefiting. In other words -- there is speculation that the home is provided by one single developer or there's something going on under the table, but we are dealing with (construction) associations and (civic) groups.
The Taichung City Urban Development Bureau says Taichung residents will not have to shoulder the burden of consumption stimulation campaigns and the developers did not receive any special benefits. The developers say they are willing to bear the cost of this prize to boost consumption and stimulate the real estate market in Greater Taichung.