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Luxury home transactions in New Taipei drop 67% this year

2015/10/18 18:58:10

Taipei, Oct. 18 (CNA) Transactions of luxury residential properties in Taiwan's five municipalities decreased 50 percent on average in the first eight months of the year, with New Taipei recording the steepest decline of 67 percent, according to data released Sunday by a real estate company.

The decrease was due mainly to government policies that are aimed at reining in high-flying home prices, said Huang Shu-wei (黃舒衛), a manager in the research department of Yung Ching Realty Group (永慶房屋).

Other factors included growing caution among high-asset groups amid an economic slowdown, and uncertainty ahead of the Jan. 16 presidential and legislative elections, Huang said.

Under Taiwan regulations, luxury homes are defined as housing units valued at more than NT$70 million (US$2.17 million) in the capital Taipei, more than NT$60 million in neighboring New Taipei, and over NT$40 million in other areas.

In the first eight months of the year, 191 luxury units were sold Taipei, 70 in New Taipei, 43 in Taoyuan, 99 in Taichung, 30 in Tainan, and 55 in Kaohsiung, Huang said, citing registration and actual sales data.

The figures represented a year-on-year decline of 43 percent in Taipei, 41 percent in Tainan, and over 50 percent in each of the other four areas, Huang said.

Meanwhile, transactions of other residential properties dropped 48 percent year-on-year in Taipei in the first eight months of the year, 35 percent in New Taipei, 40 percent in Taoyuan, 42 percent in Taichung, 28 percent in Tainan, and 30 percent in Kaohsiung, he said.

Huang said the withdrawal of high-asset groups from the property market due to the government's efforts to curb speculation was a major factor behind the steep drop this year in transactions of luxury homes compared with other residential properties.

(By Wei Shu and Elizabeth Hsu)
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