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Taichung property market shows signs of recovery in H2 of 2012

Taichung property market shows signs of recovery in H2 of 2012

Taipei, Dec. 29 (CNA) The property market in Taichung City showed signs of a recovery in the second half of this year as housing transactions picked up following a decline in the previous six months, Sinyi Realty Co. said Saturday.
Sinyi Realty, one of Taiwan's leading real estate agencies, cited property transaction data in the past few months as suggesting that the impact from the luxury tax on the property market in Taichung has been fading. Chen Ching-tang, a manager with Sinyi Realty, said although residential and commercial property sales in Taichung for the first 11 months of this year fell by 7,405 units from the same period of last year to 42,049 units, there has been growth in transactions in most of the past five months. In particular, housing property transactions in November rose 23 percent from October, the largest increase over the five-month period, Chen said. Taiwan's government began implementing the luxury tax in June 2011 to curb speculation, which had sent housing prices, in particular in northern Taiwan, soaring from 2009 to 2011 and made housing unaffordable for many average income earners. The tax imposes a 15 percent sales tax on second homes not lived in by the owners that are sold within one year of purchase and a 10 percent sales tax on properties sold within two years of purchase. In the past 11 months, Situn, Beitun and Nantun districts topped other districts in Taichung in housing property transactions. Sales in Situng, Beitun and Nantun hit 6,655, 5,387 and 3,857 units, respectively, during the period. Chen said Situn District has been attractive to home buyers as it has plenty of infrastructure development, convenient transportation links and increasing business activity.
With the population in the district on the rise, property prices there grew. Compared with higher home prices in Situn District, many first-time home buyers tended to favor more affordable property in Beitun District, while home transactions in Nantun District also rose with the presence of several major investments, such as the High Speed Rail Wurih station, the Wenxin Forest Park, and hyper markets, Chen said. Meanwhile, Yung Ching Real Estate Co., another leading realtor in Taiwan, cited self-compiled statistics as saying housing transactions in Taichung posted a 15 percent month-on-month increase in December.
Yung Ching said property sales in Taipei and New Taipei during the same time rose 17 percent and 6 percent, respectively, from a month earlier, while transactions in Kaohsiung fell 9 percent. (By Wei Shu, Eva Feng and Frances Huang)

Updated : 2021-05-12 20:50 GMT+08:00