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Second-hand home prices in 6 major cities generally lower: realtor

Second-hand home prices in 6 major cities generally lower: realtor

Taipei, Sept. 1 (CNA) Prices of used homes in six major cities in Taiwan generally trended lower after the government came up with a series of measures to rein in market speculation and cap high flying home prices, Yung Ching Realty Group (??????) said Tuesday. Prices of second-hand homes in New Taipei, the most populous city in Taiwan, registered the steepest drop among the six cities from a 2014 peak seen in June of that year largely due to a surplus supply, Yung Ching, one of the leading property sales agencies in Taiwan, said. Compared with a peak of NT$412,000 (US$12,716) per ping (3.3 square meters) on average seen in June 2014, second-hand home prices in New Taipei fell about 8 percent to NT$380,000 in August. It was the third consecutive month for used home prices in the city to hover below the NT$400,000 level. Huang Shu-wei (???), a manager with Yung Ching's research department, said that the government's efforts to lower speculation in the property market has turned many property investors away from the local property market. 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, in 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 have not owned and lived in the property for a certain number of years. The new tax will apply to transactions in 2016. In Taipei, the capital city of the country, the average price of second-hand homes fell 6.6 percent during the same period to NT$604,000 per ping, while the average price of used homes in Tainan and Kaohsiung also fell 3.6 percent and 2.2 percent, respectively, to NT$108,000 and NT$135,000 per ping, Yung Ching said. However, the average price of used homes in Taichung and in Taoyuan went against the downward trend of their four counterparts, rising 2.6 percent each to NT$157,000 and NT$159,000 per ping, respectively, the realtor said. Although the central bank eased its credit controls on housing mortgages to some extent in mid-August, sentiment toward the local property market remained weak, Huang said, adding that home prices are expected to continue to trend lower. In August, housing transactions fell 17 percent from a month earlier, H&B Realty Co. (?????), another major realtor in Taiwan, reported Monday. (By Wei Shu and Frances Huang)


Updated : 2021-09-27 21:50 GMT+08:00