TAIPEI (Taiwan News) — Citing data from Taiwan's six major cities' land offices, real estate agents reported that property transactions last year totaled 271,309 units, the highest in nearly 11 years, marking a 14.7% annual increase.
For the full year of 2024, Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung saw year-on-year increases of 12%, 6.9%, 20.8%, 15.3%, 11.4%, and 24.8%, respectively. Taoyuan reached an 11-year high, Taichung saw its highest volume since the 2008 financial crisis, Kaohsiung hit an 18-year high, and Tainan surpassed 27,000 units for the first time, per CNA.
The Central Bank's seventh round of credit controls led to a sharp decline in buying interest during the second half of the year, analyst Hsu Chia-shin (徐佳馨) noted. The market's bullish momentum from the first half, driven by the “Preferential Housing Loans for the Youth” initiative, helped maintain the high transaction volume.
The credit controls include four key measures aimed at curbing housing speculation. They followed the rise in housing prices and transaction volumes triggered by the “Preferential Housing Loans for the Youth” program launched in August 2023, per CNA.
The initiative allows individuals to apply through government-owned banks. In addition to offering extra government interest subsidies, the program also extends the mortgage term and grace period, easing the financial burden on those purchasing homes for personal use.
In December, the six cities recorded 21,445 property transactions. The number reflects an 8.2% increase from November but a 9.7% year-on-year decline.
The increase was largely attributed to a rush of newly completed projects being handed over to buyers before the year's end, allowing them to move into their new homes before the Lunar New Year. Additionally, a backlog of mortgage applications from the third quarter of last year was processed in the fourth quarter, which led to a rise in completed property registrations.
The cooling market trend also prompted some homeowners to lower asking prices slightly, increasing the likelihood of transactions before the new year.
