TAIPEI (Taiwan News) - A recent survey revealed that the value of the new home launches in northern Taiwan has exceeded NT$750 billion in the first eight months this year, sending a disquieting signal to experts that the housing market would crash in a near future.
The total value of newly-built and pre-selling residences has reached NT$752.3 billion in Jan.-Aug., 2018, and is set to reach NT$1.15 trillion the whole year, up 34 percent from last year's NT$837.3 billion, according to a report released by My Housing.
The launch of new residence projects has been concentrated in the districts of Daan, Xinyi, Zhongshan, and Wenshan in Taipei City. The values of the newly launched luxury apartments in Daan and Xinyi Districts contribute a large share of the total new home values.
Taoyuan City in northern Taiwan, on the other hand, is embracing larger new home projects and is expected to see more than NT$170 billion worth of new homes for sales in the market this year.
My Housing Market Research Manager Ho Shih-chan (何世昌) attributed the rapid growth of the new and pre-sold homes this year to the ongoing economic recovery, market-friendly policies, and surging last-minute registrations in 2017 to dodge a new rule that excludes balcony roofs when calculating home values.
While the supply surged in the first half of the year, the new home sales remained weak; if the property oversupply couldn't be digested, the housing market would resemble a fast moving train about to derail, said Ho.