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Housing transactions in Taichung, Kaohsiung also up in December

Housing transactions in Taichung, Kaohsiung also up in December

Taipei, Jan. 7 (CNA) Transactions of residential and commercial housing in Taichung and Kaohsiung for December rose about 30 percent from November, which analysts attributed to a markdown in used home prices, matching the trend seen in Taiwan's four other municipalities. According to statistics released by the Taichung City Government, transactions of homes, shops and offices in the central city for December rose 29.1 percent from a month earlier to 4,734 units. Data released by the Kaohsiung City Government showed transactions in Taiwan's second most populous city rose 32.7 percent month-on-month to 3,657 units. Chang Ching-yun, head of the research division of National Realty, said that after the local elections held on Nov. 29, many home buyers have been willing to return to the property market. Despite the month-on-month increase in housing sales in December, transactions in the two cities for the year 2014 fell from a year earlier, the statistics showed. Sales of homes, shops and offices in Taichung fell 10.8 percent year-on-year to 47,887 units in 2014, while housing transactions in Kaohsiung also dropped 11.8 percent to 38,815 units. National Realty said that it is possible for Taiwan to report that housing transactions for 2014 would fall to a more than decade low of less than 320,000 units. The estimated 2014 figure could be the lowest since 2001, when transactions stood at only 259,494 units. Chang said that in December, some home sellers tended to offer discounted prices in a bid to speed up transactions of used homes, as sellers have feared that the government will come up with more measures to rein in high-flying housing prices in the new year. In particular, most sellers are worried about a possible push for tax reform that would require them to pay a capital gains tax based on the actual amount earned rather than the property value as assessed by the government, she noted.
Because the government-assessed values are mere fractions of the actual market value, the current tax burden is extremely low relative to the actual gains. On Tuesday, Minister of Finance Chang Sheng-ford said that his ministry will try its best to push for the tax reform and hopes the new capital gains tax for the property market will be implemented in 2016. (By Wei Shu and Frances Huang)


Updated : 2021-09-23 10:29 GMT+08:00