Senior executives from seven mainland and Hong Kong property firms will visit Taiwan province next week to study the island's real estate market, signaling a good step toward a closer economic partnership across the Straits.

Investment strategists say the developers' tour will lead to a significant boost in Taiwan's property market in the long term.

But investors are advised to be cautious given the local government's policy on investment control.

Listed developers SOHO China, Agile Property, R&F Properties and Vantone Estate will be among the group touring Taiwan, according to the organizer of the trip - Phoenix Satellite Television.

Executives from seven developers will visit Taipei and Kaohsiung, Taiwan's two largest cities, as well as other popular development areas. But the itinerary hasn't been finalized, according to Phoenix TV.

The developer tour might result in the first investment on the island after its "presidential" election.

"The property market in Taiwan is set for a boom if Ma Ying-jeou keeps his pledge to liberalize economic exchanges with the mainland," said Ben Kwong, head of research at KGI Asia.

"Some areas in big cities in Taiwan can be very attractive to property developers, the property prices remain relatively low due to the island's sluggish economy over the last eight years," Kwong said.

He said all cross-Straits-related sectors in Taiwan are worth investing in, including property, logistics and financial services.

Taiwan's newly-elected leader, Ma Ying-jeou, has said he wants to open up the property market further as part of his plan to create closer economic links across the Straits.

Ma, who will take office on May 20, gained popularity in the election on a vow to help create a more-prosperous economy, said he will allow investment in housing as long as properties are held for at least five years to stabilize the property prices.

Luxury residential property prices in certain districts of Taipei jumped by one-third right after Ma's victory. Site visits by potential homebuyers were up 30 to 40 percent in recent weeks. And market watchers expect a rise of more than 20 percent by the end of 2008.

(HK Edition 04/17/2008 page2)