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).
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS