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Housing prices in Taipei exceeded NT$25 million per unit in 2020

Average cost of home in capital equivalent to nearly 16 years of annual income

Taipei. (Getty Images)

Taipei. (Getty Images)

TAIPEI (Taiwan News) — The price of a home in Taipei averaged NT$25.73 million (US$924,249) in 2020, a rise of 3.25% over the previous year, making it ever harder for salary workers to settle down in the capital.

Department of Land Administration statistics indicate that 15,603 residential units were sold in Taipei last year, up 0.32% from a year earlier. Among the 12 administrative districts, Daan District came out on top with an average price of NT$38.21 million per apartment, while Wanhua was the cheapest district with an average of NT$16.35 million.

People spent NT$653,000 per ping (3.3 square meters) for a home on average, an increase of 2.51% year on year. Daan also registered the most spent per ping at NT$894,000, with the lowest recorded in Beitou at NT$501,000.

According to the Ministry of the Interior’s price-to-income ratio figures for the first quarter of 2021, the cost of an average home in Taipei is the equivalent of 15.54 years of income.

Even those whose annual income exceeds NT$1 million cannot seem to afford a home in Taipei if they are looking at an apartment with an elevator and residential guard, according to real estate businesses. Experts have called for more to be done to curb property speculation and tax people who own a home they do not live in, such as by adjusting mortgage rates, loan-to-value ratios, and other policy instruments, UDN reported.

Taipei passed an amendment to the housing tax regulation in May, which will see property developers taxed 2% for having owned a home for no more than one and a half years rather than the current 1.5% for three years. This is meant to discourage hoarding.