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Report suggests real estate industry might cool off in 2007 first quarter

Report suggests real estate industry might cool off in 2007 first quarter

Taiwan's booming real estate market may cool off from the next year, as many land developers and construction companies in northern Taiwan have become more reserved about their prospects, according to a recent report.
The report was released Thursday by Yeh Shih-wen, deputy director-general of the Architecture and Building Research Institute under the Ministry of the Interior, and National Chengchi University (國立政治大學) Professor Chang Chin-oh.
Citing the results of a survey among real estate developers carried out by the institute, Chang reported that 19.63 percent of the respondents hold a negative view about the sector's climate in the first quarter of 2007, a rise from 14.74 percent for the fourth quarter of this year.
According to Chang, it is worth noting that a larger ratio of construction companies based in northern Taiwan - where the market has been red-hot in recent years - have become less optimistic about their business prospects in the coming three months.
Their change of attitude is an initial sign that concerns are increasingly mounting about the real estate market, although he said that reasons behind the phenomenon need further study.
Chang expressed his concern that house prices will be impacted should supply exceed demand, on the grounds that retail investors in northern Taiwan accounted for over 50 percent of total house buyers this year, which he described as an alarmingly high level.
Chang suggested that potential investors not enter the market, as room for profit is limited due to already high housing prices and growing difficulties in getting loans from banks.


Updated : 2021-01-28 22:45 GMT+08:00