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Housing transactions in 6 major cities down by up to 25%

Housing transactions in 6 major cities down by up to 25%

Taipei, July 4 (CNA) Transactions of residential and commercial property in six major cities in Taiwan for the first half of this year registered a fall of up to 25 percent from a year earlier, reflecting uncertainty over government tax reform, statistics showed on Saturday. Transactions of homes, shops and offices in Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung suffered a year-on-year decline of 11-25 percent, the data showed. New Taipei in northern Taiwan, the most populous city in the country, saw a 25 percent year-on-year fall in residential and commercial property transactions in the six-month period to 23,533 units, the steepest decline among the six cities. In early June, the Legislative Yuan passed a tax reform plan proposed by the Ministry of Finance that will impose a capital gains tax of up to 45 percent on profits made on the sale of homes, the latest effort by the government to rein in skyrocketing home prices. To prevent property speculation, which has pushed up housing prices to unaffordable levels for many, under the new tax measure sellers will be taxed more if they were not living in the property and had not owned it for a certain number of years. The new tax will apply to transactions from 2016. Analysts said that prior to lawmakers passing the tax reform, market sentiment was dampened by uncertainty, prompting buyers to stay out of the market, a move which caused transactions to plunge during the six month period. According to statistics, housing transactions in Taipei fell 22 percent in the first half of the year to 13,061 units. Chang Ching-yun (???), head of research at National Realty (????), said that as Taipei and New Taipei were the most watched property markets in Taiwan, the steep fall in transactions demonstrated that the tax reform scared away many investors. Transactions of homes, shops and offices in Taoyuan during the same period, fell 23 percent from a year earlier to 17,526 units, property sales in Taichung dropped 13 percent to 20,359 units. Transactions in Tainan and Kaohsiung declined 11 percent and 20 percent, respectively, to 9,242 units and 16,504 units. Lin Chia-ting (???), vice president of National Realty, said that since the tax reform was passed, removing market uncertainty, buying interest seemed to have recovered to some extent, with home buyers wanting to take advantage of the vacuum before the new tax rules come into effect. (By Wei Shu and Frances Huang)


Updated : 2021-09-22 10:29 GMT+08:00