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Housing trade slumps in Taiwan due to tighter government control

Housing trade slumps in Taiwan due to tighter government control

Taipei, Jan. 18 (CNA) The value of housing transactions fell 31 percent year-on-year in Taiwan's six municipalities in the first 11 months of last year, a real estate agent said Sunday, attributing the drop to tightened measures by the government to suppress rising property prices The transactions (excluding new houses) in Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung fell to NT$701.34 billion (US$22.29 billion) in the 11-month period in 2014, from the NT$1.165 trillion in the previous year, said Huang Shu-wei (???), a market researcher at Yung Ching Realty Group (????), one of the largest real estate agencies in Taiwan. Citing data on the government-run real estate transaction registration system, Huang estimated that the annual real estate transactions in the six municipalities will stand at only around NT$760 billion at the most in 2014 in terms of value. In Taipei and New Taipei alone, housing transactions slumped by 34 percent to NT$422.13 billion in the first 11 months of 2014 from the NT$214.93 billion in the same period of the previous year, registering the largest drop among the six major cities, Huang said. Since early 2014, the government has begun to tighten control measures in the real estate market to stem rising housing prices, according to Huang. The measures include conducting tax inspections on high-priced properties and imposing a so-called mansion tax and tax on people possessing more than three housing units. Also, government-funded banks have taken strict measures to review housing loan applications in areas where housing transactions are overheated, he said. As a result, housing sales have cooled, leading the real estate transactions in Taipei and neighboring New Taipei in 2014 to fall to their lowest in 23 years, the manager of Yung Ching's market research center said. Huang forecast that the coolness in the housing market in metropolitan areas will continue in 2015, as lawmakers discuss a tax reform proposal aimed at integrating the existing housing tax and land value tax. (By Wei Shu and Elizabeth Hsu)


Updated : 2021-09-21 22:29 GMT+08:00