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Pre-sales of homes in northern Taiwan fall 11.7%: report

Pre-sales of homes in northern Taiwan fall 11.7%: report

Taipei, Dec. 29 (CNA) Pre-sales of homes in northern Taiwan dropped 11.7 percent in 2011 year on year, due mainly to the government's efforts to cool the property market, according to a real estate magazine report Thursday. The value of pre-sale homes in the north of the country fell from NT$930 billion (US$30.68 billion) in 2010 to NT$821 billion this year, Housing Monthly reported. Statistics show that the government's introduction this year of a luxury tax, net tax, and Housing Act was the main cause, but other factors such as uncertainties in the global economy and the European debt crisis also contributed to the decline, the report said. In its fourth quarter analysis, the magazine said housing projects that have been on hold because of the upcoming presidential election might be put on the market after the Jan. 14 poll. It estimated that the value of home pre-sales in northern Taiwan will rise to around NT$900 billion in 2012, while in Taichung and Kaohsiung it will remain at the 2011 levels of NT$180 billion and NT$120 billion, respectively. However, Housing Monthly's chief R&D writer Ni Tzu-jen forecast that the low home pre-sale rate in northern Taiwan, which currently averages 40 percent-45 percent, is likely to continue for the next few years. Construction companies will have difficulty selling completed new houses, he predicted. Nonetheless, interest rates will be the key factor in Taiwan's housing market next year, he said, as the Central Bank was about to decide Thursday whether to hike interest rates. If interest rates are maintained at the current levels or lowered in 2012, more people will be willing to invest in the housing market, he added. The magazine said the oversupply of finished homes in the north of the country is most evident in the Linkou, Sansia and Danshui districts in New Taipei City and near the expressways leading to Nankang Science Park in Taoyuan County and Jhongli City. The situation also exists in Hsinchu City and Chupei City, it said. The fate of the real estate market in these areas will depend on whether the surplus houses can be sold, the magazine said. (By Eva Feng and C.J. Lin)/ End Item /pc


Updated : 2021-08-02 17:40 GMT+08:00