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Housing transactions in Taipei fall below 2,000 units

Housing transactions in Taipei fall below 2,000 units

Taipei, May 2 (CNA) Transactions of residential and commercial housing in Taipei for April fell below the 2,000 unit mark amid lingering concerns over a government-initiated tax reform expected to raise the tax burden shouldered by property investors, according to statistics released Saturday. In April, transactions of homes, shops and offices in Taipei, the most-watched property market in Taiwan, stood at only 1,983 units, down 9 percent from a month earlier, and also down 29 percent from a year earlier, according to the Department of Land under the Taipei City Government. It was unusual that housing transactions in Taipei fell below 2,000 units in a month in which the Lunar New Year holiday did not fall. In January or February, when the Lunar New Year holiday is celebrated, property transactions trended down due to the reduced number of working days. Market analysts said that the Taiwan equity market breached 10,000 points multiple times before falling back to some extent in late April, with turnover expanding on the back of further foreign fund inflows. There have been no signs that the local property market has staged a rebound. Last month, the weighted index on the Taiwan Stock Exchange gained 233.61 points, or about 2.44 percent, to close at 9,820.05 points on Thursday, the last trading session of the month. Analysts said that investor sentiment remained overshadowed by concerns over the government tax reform plan, adding that while the latest version of the capital gains tax targeting the property market appears more lenient than the original version, investors were concerned by market uncertainty. The tax reform measure marks a significant change from the present practice in which home-sellers will be taxed based on their capital gains from the actual sales amount rather than the current government-assessed property value, which is merely a fraction of the selling price. Tseng Ching-der (???), an analyst at Sinyi Realty's (????) research division, said that among the 12 districts in Taipei, only Zhongshan, Beitou, Neihu and Wenshan districts saw transactions of residential and commercial property topping 200 units in the month. Tseng said that the April transaction data shows that only two out of every 1,000 households in Taipei made purchases. However, transactions in New Taipei and Taoyuan in northern Taiwan appeared relatively stable compared with those in Taipei, the statistics show. In New Taipei, the most populous city in Taiwan, transactions of homes, shops and offices totaled 4,454 units, down 14 percent from a year earlier but up 17 percent from a month earlier. In Taoyuan, transactions of residential and commercial properties reached 3,031 units, down 24 percent from a year earlier but up 7 percent from a month earlier. In the first quarter of this year, transactions of residential and commercial properties in Taipei, New Taipei and Taoyuan fell 21.1 percent, 25.2 percent, and 23 percent from a year earlier, respectively, to 6,478 units, 11,036 units and 8,132 units, the data shows. (By Wei Shu and Frances Huang)


Updated : 2021-09-27 05:09 GMT+08:00