Alexa

Taiwan property prices to decline until March: Ministry of Interior

A file photo of Interior Minister Liao Liou-yi. Taiwan property prices will continue to decline through to the first quarter of next year, according t...

A file photo of Interior Minister Liao Liou-yi. Taiwan property prices will continue to decline through to the first quarter of next year, according t...

Taiwan property prices will continue to decline through to the first quarter of next year, according to a government survey.

The property-market leading indicator, which gauges conditions for the coming three quarters, dropped 1.76 percent in the three months to March, the fourth consecutive decline, the Ministry of the Interior said in a report Monday.

“Housing demand hasn’t improved because of the record unemployment rate and record jobless people,” said Chang Chin- oh, director of the Taiwan Real Estate Research Centre at the National Chengchi University in Taipei, which produced the survey. “The supply side may experience some recovery as developers bet on warming ties between China and Taiwan. Still, the health of the property market depends on demand not supply.”

Taiwan’s unemployment rate climbed to a record high of 5.84 percent in May. Consumer prices fell for a fourth straight month in May as job losses and salary cuts discouraged spending. Taiwan’s central bank last week kept its interest rate unchanged at a record low for a second straight meeting and said it may take time for the economy to return to the 2008 level.

“The comment showed that the central bank is concerned about the economic recovery and may continue to monitor closely on the jobless situation,” said Alan Liao, an economist at Chinatrust Commercial Bank in Taipei.


Updated : 2020-12-01 02:34 GMT+08:00