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In June this year, the National Property Administration (NPA) released national houses in 59 areas and land cases for lease tender in different counties and cities. Among them, most house locations are in the Greater Taipei area and Tainan City, in the vicinity of buisness districts, with convenient transportation and comprehensive living functions. Building land for lease tender in Yilan County, Changhua County, and Pingtung County possesses excellent topography and locations. Relevent tender information will become available later on the NPA region branch websites under the categories of “Tender Information” and “Real Estate Lease Tender Information”. The bidding will be open to all. According to the NPA, the tender lease sysetm in the past was based on rental rate bids, while the reserve price was the annual rental rate for leased items provisioned by law. For bases, the current declared land value is multiplied by 5%. For houses, the current house tax value is multiplied by 10%. When both land and improved buildings are put up for tender, the annual rental rate for land is applicable during bidding. Additionally, bid winners are not to apply for building licenses after signing a lease. In consideration of the above system that is off course from the market and economic trend, the Mnistry of Finance amended the “Regulations for Leasehold of National Non-public Use Real Estate” for submission to the Executive Yuan. On May 1st, 2014, the “Operation Directions for Leasing of National Non-public Real Estate through Open Tender” were set up. According to the amended provisions, contract royalties and annual rentals for tender lease land must be collected, and biddings will be based on contract royalties. The reserve price of royalties will be based on the current declared tender lease land value multiplied by 3% and the number of years leased. When both land and improved buildings are put up for tender, the annual rental for the land and improved buildings shall be used to calculate the total amount for bidding. The reserve price for annual rental is estimated in reference to the market price. Further, those who join tender lease of national bases for a lease term of 10 years (inclusive) or more, tender lease authorities shall issue the letter of consent on for tender lease land use, so that tenants may apply for construction or miscellaneous licenses that in turn boost tenants’ land use intensity. Press Contact: Mr. Yi, Section Chief Tel.: 02 -2771-8121, Ext. 1241