TAIPEI (Taiwan News) — Government measures targeting real estate speculation are unlikely to register much impact, as consumers still expect property prices to rise, according to an economic study released Tuesday (April 27).
Under amendments to the Income Tax Act scheduled to go into effect July 1, a tax of 45 percent will be paid on gains from the sale of property within two years of purchase and 35 percent for two to five years. Foreign citizens and businesses will have to pay a tax rate of 35 percent for gains made after two years.
However, National Central University’s Research Center for Taiwan Economic Development saw the Consumer Confidence Index (CCI) rise by 0.76 points to 77.28 points in April, with interest in buying property only dropping by 0.35 percent. The limited decline showed most people still saw housing prices rise, Radio Taiwan International (RTI) reported.
The CCI figure for April was the highest in 13 months, with the 2,852 survey respondents the most optimistic about the stock market. Even though the market index had already crossed the 17,000-point mark, investors are confident about Taiwan’s economic performance in the months ahead fueling a further rise.
As for the real estate market, a high level of confidence has translated into homeowners holding onto their properties, causing a shortage of supply that would result in more price hikes, the university survey said.