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Taiwan's housing market shows signs of stabilizing

Taiwan's housing market shows signs of stabilizing

Taipei, Dec. 2 (CNA) Taiwan's property market is showing signs of stabilizing, with the number of housing transactions in most of the six special municipalities rising about 10 percent in October from the same month last year, according to figures from the land administration bureaus of the six cities.

Housing transactions totaled 2,533 units in Taipei in November, representing an increase of 10.8 percent from the same period last year and a 13 percent increase from October. Tainan posted the biggest year-on-year jump of 12.1 percent to 1,606 units and a monthly fall of 3.9 percent, while Taoyuan saw a 3.6 percent annual increase and a monthly increase of 23.2 percent.

Meanwhile, Kaohsiung witnessed an annual 2.1 percent rise to 2,814 units and 17.8 percent monthly growth.

There were 3,867 property transactions in Taichung, representing the biggest month-on-month increase of 37 percent and a 5.5 percent increase year-on-year.

New Taipei City saw the deepest annual decline of 12.1 percent to 3,897 units and a slight monthly increase of 0.9 percent.

The upturn in transactions is attributed to a market rebound and the completion of an increasing number of housing projects as property development companies rush to complete projects by the end of this year, before an integrated housing and land tax system comes into effect next year, according to Sinyi Realty research manager Tseng Chin-der.

The property market posted about 221,000 transactions for the first 10 months of this year and the transaction volume rose 10-30 percent in November. For the whole of this year, transactions could reach 270,000 units, Tseng said. Chang Ching-yun, head of research at National Realty, also cited the new tax law and the traditional fourth-quarter peak season for buying and selling property as the two main factors behind the recent rise in property transactions.

Huang Li-hung, the head of the Beitou office of National Realty, predicted that transaction volume is expected to reach a new peak in early December after house prices saw a 10-20 percent drop in November.

Meanwhile, another expert said that the housing market will continue to pick up through the rest of this year and the transaction volume could expand further after the Chinese New Year following the conclusion of the presidential and legislative elections in January. (By Wei Shu and Evelyn Kao)

Updated : 2021-09-24 21:22 GMT+08:00