Taichung sees steepest fall in completed home prices among 6 biggest cities

Taipei, April 20 (CNA) Taichung suffered the steepest fall in completed home prices among the six largest cities in Taiwan in the first quarter of this year, data compiled by Taiwan Realty showed Monday.

According to Taiwan Realty, which compiled the data based on the government's price registration platform, the average transaction price for completed homes in Taichung, central Taiwan, fell 8.0 percent from a year earlier to NT$299,000 (US$9,482) per ping in the January-March period. One ping equals 3.3 square meters.

Chen Ting-chung (陳定中), a senior manger at Taiwan Realty, said many home buyers for self-dwelling purposes tend to choose relatively affordable used homes instead of newly built homes in Taichung's prime property market, so the average transaction price in the city moved lower in the first quarter.

In addition, Chen said amid escalating competition in the non-prime area market in Taichung, home sellers were willing to reduce prices to quickly cut a deal, which also pushed down completed residential property prices in the first quarter.

According to Taiwan Realty, among the six largest cities, only Taipei, the capital city in the north, recorded a 0.9 percent year-on-year increase in transaction prices for completed homes to NT$818,000 per ping in the first quarter.

Taiwan Realty Enterprise section chief Charlene Chang (張旭嵐) said as a mature home market, Taiwan has a very limited supply, leading to stable home values.

Many buyers in Taipei are attracted to smaller-sized homes for their relatively smaller families, but such homes still carry a high price tag, while homes from urban renewal projects are largely located in a prime market to lend support to the city's property market, Chang said.

Elsewhere, New Taipei in the north recorded an average transaction price of NT$452,000 per ping for completed homes in the first quarter, down 4.3 percent from a year earlier, while Tainan and Kaohsiung in the south reported the average transaction prices of NT$243,000 and NT$257,000 per ping, respectively, down 5.1 percent and 4.5 percent from a year earlier.