Alexa
  • Directory of Taiwan

Housing transactions in May down about 12%

Housing transactions in May down about 12%

Taipei, May 30 (CNA) Transactions of residential and commercial property in Taiwan during May 1-26 fell about 12 percent from a month earlier on slow season effects, statistics compiled by Sinyi Realty Inc. (????) showed Saturday. According to the data, transactions of homes, shops and offices in Taipei and New Taipei in northern Taiwan, and Taichung in central Taiwan, fell some 10 percent from a month earlier during the 26-day period, while transactions in Kaohsiung in southern Taiwan rose 2 percent month-on-month. Tseng Ching-der (???), a manager with Sinyi Realty's research department, said that since people here had to pay their income tax in May, interest in property buying seemed to be dampened to some extent. The analyst said that the recent monsoon downpours also kept many property investors from visiting their sales agents and checking out property, which affected buying during most of the month. Sinyi Realty said that the property market in southern Taiwan seemed to have done better than in northern Taiwan during this period. There was less rain in the south. Despite the fall in sales volume, Tseng said, selling prices in the May 1-26 period stable, particularly for houses which carried a relatively low price tag, making them more affordable. For example, Tseng said, residential and commercial property with selling prices ranging between NT$7 million (US$227,273) and NT$20 million accounted for about 50 percent of the total transactions in Taipei, which is the most watched property market in Taiwan. Transactions in Taipei's Datong, Wenshan and Wanhua districts, where home prices generally appeared relatively low, even registered an increase in transactions month-on-month in the 26-day period, Tseng said. In New Taipei, the most populous city in Taiwan, the Banqiao, Xizhi and Sanchong districts performed better than other districts in the city during the same period, the analyst said. In Kaohsiung, homes priced at NT$10 million-NT$15 million were more popular among buyers, the statistics showed. Tseng said that since the Legislative Yuan could pass a long-anticipated government-proposed tax reform plan by the end of June, uncertainty is expected to be removed and market momentum will likely pick up later this year. The tax reform marks a significant change from the current practice in which sellers are taxed based on a local government-assessed property value, which is merely a fraction of the actual selling price. If the reform plan is passed, property sellers will be taxed up to 45 percent of the income they earn from the sales price if they don't live in the property and have owned it for just one year. The tax rate goes down the longer the owner has owned the property, with those who have lived in the property for at least six years exempt from paying taxes if the sales gains are less than NT$4 million. (By Wei Shu and Frances Huang)


Updated : 2021-09-23 01:30 GMT+08:00