Consumers are now turning bearish about the previously sizzling property market this year as already high housing prices shoot through the roof, according to a survey released by Evertrust Rehouse (
The survey, which polled 1,124 people from Jan. 15 to Jan. 21, showed that 76.2 percent of respondents expressed conservative sentiments about the housing market this year, mainly because of concerns about high property prices.
Only 16.9 positive
Only 16.9 percent of those polled reported feeling positive about investing in real estate this year, citing expectations for an economic recovery and improvements in the cross-strait relationship, the poll said.
"This can be deemed as a warning sign for the property market," Benson Liao (
The results showed that the soaring property prices in the wake of enthusiastic overseas Taiwanese and foreign investment have exceed the level that the public can afford, Liao said.
Average house prices in Taipei are estimated at 10.5 times the amount of average annual income, higher than the level found in Hong Kong, South Korea and Tokyo, Liao said, citing data from Fubon Securities (
Property bubble
The survey also showed that up to 60 percent of those polled worried that the property bubble could burst this year because of a supply glut.
Macquarie Research, which had been bullish about the Taiwanese real-estate sector, said earlier this month that it was now cautious because of margin pressure concerns.
Home buyers seem to have become more reluctant to absorb the higher prices, it said.
The company was thus concerned whether developers could continue to pass on the land price increases to home buyers, the Australian brokerage said.
Given the slow increase in annual disposal income in Taipei, which is at estimated 1 percent for the next three years, the annual growth in housing prices in the city is expected to slow down to 5 percent this year.
The grow is expected to drop further to 3 percent next year, Macquarie said.
Macquarie predicted some profit-taking by speculators was likely to happen before or after the presidential election, creating more uncertainty for the Taiwan property market next year.
Take profits
The brokerage suggested that investors take profits on property-related stocks now given the expected slower momentum this year.
Macquarie aslo downgraded ratings on both Chong Hong Construction (
Macquarie changed its rating for Sinyi Realty Inc (
However, it appeared that not every company shared the same pessimism.
Shin Kong Financial Holding Co (
High return locations
The company targets an investment of approximately NT$10 billion (US$303.8 million) in buildings that have an annual return exceeding 4 percent and good locations this year, the Chinese-language Commercial Times reported yesterday.
Last March, Shin Kong's flagship Shin Kong Life Insurance Co (新光人壽) acquired two residential parcels of state-owned land in downtown Taipei for NT$6.38 billion, or NT$2.74 million per ping (3.3m2).
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial
RSS