Housing transactions in Taiwan's top 6 cities dip to 8-year April low

Taipei, May 5 (CNA) Transactions of residential and commercial properties in Taiwan's six largest cities dipped to an eight-year low for April, and market analysts said large investors moved funds to the booming local stock market.

According to statistics released by the governments of the six cities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung -- on Monday, transactions of homes, shops and offices stood at 15,685 units in April, down 14.2 percent from a month earlier and down 7.1 percent from a year earlier.

In Taipei, the most closely watched market in Taiwan, housing transactions fell to 1,981 units in April, down 17.9 percent from a month earlier and down 6.7 percent from a year earlier, while sales in New Taipei, Taiwan's most populated city, dropped to 3,504 units, down 20.7 percent from a month earlier and down 7.9 percent from a year earlier.

Property transactions in Taoyuan totaled 2,894 units in April, down 15.3 percent from March and down 16.6 percent from a year earlier, while sales in Taichung stood at 3,142 units, down 1.7 percent from a year earlier and down 2 percent from a month earlier.

Also in April, transactions in Tainan reached 1,585 units, down 13.7 percent from a month earlier and down 10.4 percent from a year earlier. Kaohsiung was the only city that reported a year-on-year increase of 3 percent in transactions, which totaled 2,579 units, but sales still fell 14.1 percent from a month earlier.

In the first four months of this year, transactions of homes, shops and offices fell 3.4 percent from a year earlier to 62,688 units, the second-lowest since the tallies began in 1999, the statistics showed.

Charlene Chang (張旭嵐), a section chief at Taiwan Realty Enterprise, said many investors moved funds to the local stock market, the benchmark index of which briefly topped the 40,000 point mark in April.

But Chang said when the stock market consolidates after hitting highs, it is possible for investors to move their funds back to the home market to diversify their investment portfolios.

Tseng Ching-der (曾敬德), a research manager with Sinyi Realty Inc., also expressed optimism toward the home market, saying with the central bank's easing its selective credit controls in March on a second home of an individual buyer, some deferred buying was seen emerging, and such interest could continue.