TAIPEI (Taiwan News) — Housing transactions dropped significantly in the first three quarters of the year, and in the Taipei area, only two transactions on average took place out of 100 households, according to government statistics.

This is the lowest level in six years, per Liberty Times. Elsewhere across Taiwan, buying sentiment has also declined, even in Taoyuan City, which has traditionally enjoyed a strong real estate market.

Taoyuan City saw a drop of 0.5% to 3.3%, meaning that an average of 3.3 households out of 100 purchased a residence in the first three quarters of the year. The city was still at the top in terms of housing purchases in Taiwan, followed by Taichung City, which ranked second at 3.2%, and New Taipei City, which fell from last year’s 3% to only 2.5%.

Great Home Realty Planning and Research Center Director Lang Mei-nan (郎美囡) says housing prices have not fallen despite quantity increasing. Lang said she believes many buyers are waiting for low prices as buying sentiment has weakened, particularly in Taipei City.

Lang said Taoyuan City has benefited from government investments in transportation infrastructure associated with an “aerotropolis.” However, this buying sentiment has also been compromised by the Central Bank's interest rate hikes.

Taichung, Kaohsiung, and Tainan have not been spared. This is despite TSMC’s announcement that it would build a new semiconductor facility in Kaohsiung.

Other real estate analysts believe rising housing prices and interest rates have weakened buyers' spending power. With no room for price concessions, buyers' willingness to purchase houses will continue to be low into the foreseeable future as full-year data is expected to exhibit a downward trend.