Property transactions up 27.9% year-on-year in April

05/04/2021 06:03 PM
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Taipei. CNA file photo
Taipei. CNA file photo

Taipei, May 4 (CNA) Transactions of residential and commercial property in Taiwan's six largest cities by population rose almost 28 percent from a year earlier in April, despite government measures taken to rein in market speculation.

Transactions of homes, offices and shops in the six cities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung -- totaled 22,520 units, up 27.9 percent from a year earlier, according to statistics released by the local city governments.

The number of transactions was down 0.2 percent, however, from the previous month.

In the first four months of 2021, housing transactions in the six cities rose 19.3 percent from a year earlier to 84,677 units, with Kaohsiung recording the highest year-on-year growth of 24.7 percent.

Charlene Chang (張旭嵐), a section chief of Taiwan Realty Enterprise, said the year-on-year growth in April partly reflected a relatively low base of comparison for the same period last year.

It was also the result of high demand for people wanting to buy homes for their own use, Chang said.

Among the government's measures to reverse a sustained increase in home prices that has sparked an outcry among the younger generation, the central bank set a ceiling for mortgages of 40 percent of a home's value for corporate buyers or other legal entities.

In terms of luxury homes, the mortgage cap was lowered from 60 percent to 55 percent for people buying their first, second, or third home, and from 60 percent to 40 percent for any purchase beyond a third home, according to the central bank.

Those measures may have slightly dampened investor interest, but demand remained strong among other consumer segments.

In Taipei, the most closely watched property market in Taiwan, transactions of homes, offices and shops totaled 2,712 units in April, up 17.4 percent from a year earlier but down 3.3 percent from a month earlier, the data showed.

New Taipei in northern Taiwan, the most populous municipality in Taiwan, recorded the highest residential and commercial sales of 6,325 units in April, up 37.8 percent from a year earlier and up 9.1 percent from a month earlier, the data showed.

In Taoyuan, also in northern Taiwan, housing transactions hit 3,757 units, up 13.4 percent from a year earlier but down 6.2 percent from a month earlier, while sales in Taichung in central Taiwan totaled 3,864 units, up 28.5 percent from a year earlier but down 8.6 percent from a month earlier.

In southern Taiwan, housing transactions in Tainan reached 2,143 units, up 26.3 percent from a year earlier and up 4 percent from a month earlier, while sales in Kaohsiung totaled 3,719 units, up 38.6 percent from a year earlier and up 1 percent from a month earlier.

Tseng Ching-der (曾敬德), a research manager with Sinyi Realty Inc., said the number of newly built homes in the first quarter of this year rose about 4,000 units from a year earlier, which paved the way for higher transactions in the quarter and helped stabilize the property markets in the six cities.

Jessica Hsu (徐佳馨), head of the research department at real-estate agency H&B Business Group, said Taiwan's low interest rates in Taiwan are expected to give support to the property market despite the government's efforts to dampen market speculation.

(By Tsai Peng-min and Frances Huang)

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