China Xiaokang Network (http://www.chinaxiaokang.com/) May 30 Lao Ma Comprehensive Media Report After a decade of bull market, Taiwan's housing prices fell last year; while the economy has shrunk and the new government has focused on the equal distribution of wealth, the decline in housing prices may expand.
Taipei house prices soared in 10 years, young Taiwanese complained that they did not change
According to data released by the Ministry of the Interior of Taiwan, since the first quarter of 2015, Taiwan's house prices have fallen by 1.2%, and transaction volume has decreased by 15.5%. Among the major global cities tracked by real estate consulting firm Knight Frank, Taipei's real estate market performed the worst in the year to March. Taiwan’s first “female president” Tsai Ing-wen, who was sworn in last week, promised to eliminate the widening gap between the rich and the poor and provide affordable housing to the younger generation.
Liu Peizhen, an associate researcher at the Taiwan Economic Research Institute, pointed out that the performance in the first quarter was not good, and the annual transaction volume was estimated to be a single-digit decline compared with last year, and the transaction price was estimated to fall by about 10% compared with last year.
Taiwan's housing prices have tripled since 2004 due to low mortgage interest rates, and the government subsequently issued measures against speculators. In 2010, the Taiwan Central Bank began to limit the loan amount of home buyers; starting this year, the real estate integrated tax, which includes the total real estate price after the merger of houses and land, will be implemented, with a maximum tax rate of 45%.
According to the global real estate consulting firm Knight Frank's recent global city luxury home index, the price of luxury homes in Taipei fell 7.6% in the year to March this year, ranking first among the 35 cities tracked by the index. Knight Frank data also showed that from the second quarter of 2013 to the first quarter of this year, the average house price per square foot in Taipei fell 14%.
Taiwan's economy has recorded negative growth for three consecutive quarters, and exports, which contributed the most to the economy, have declined for 15 consecutive months as global demand slows down.
Yan Bingli, managing director of real estate service provider Ded & Fong in Taipei, said that popularity began to weaken at the end of 2014, and funds began to leave in 2015. What he is referring to is wealthy Taiwanese investors starting to invest outside Taiwan. After the new policy tends to increase the affordability of real estate, potential buyers believe that the government is no longer a market-friendly.
