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).
TECH TITAN: Pandemic-era demand for semiconductors turbocharged the nation’s GDP per capita to surpass South Korea’s, but it still remains half that of Singapore Taiwan is set to surpass South Korea this year in terms of wealth for the first time in more than two decades, marking a shift in Asia’s economic ranks made possible by the ascent of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). According to the latest forecasts released on Thursday by the central bank, Taiwan’s GDP is expected to expand 4.55 percent this year, a further upward revision from the 4.45 percent estimate made by the statistics bureau last month. The growth trajectory puts Taiwan on track to exceed South Korea’s GDP per capita — a key measure of living standards — a
READY TO HELP: Should TSMC require assistance, the government would fully cooperate in helping to speed up the establishment of the Chiayi plant, an official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said its investment plans in Taiwan are “unchanged” amid speculation that the chipmaker might have suspended construction work on its second chip packaging plant in Chiayi County and plans to move equipment arranged for the plant to the US. The Chinese-language Economic Daily News reported earlier yesterday that TSMC had halted the construction of the chip packaging plant, which was scheduled to be completed next year and begin mass production in 2028. TSMC did not directly address whether construction of the plant had halted, but said its investment plans in Taiwan remain “unchanged.” The chipmaker started
MORTGAGE WORRIES: About 34% of respondents to a survey said they would approach multiple lenders to pay for a home, while 29.2% said they would ask family for help New housing projects in Taiwan’s six special municipalities, as well as Hsinchu city and county, are projected to total NT$710.65 billion (US$23.61 billion) in the upcoming fall sales season, a record 30 percent decrease from a year earlier, as tighter mortgage rules prompt developers to pull back, property listing platform 591.com (591新建案) said yesterday. The number of projects has also fallen to 312, a more than 20 percent decrease year-on-year, underscoring weakening sentiment and momentum amid lingering policy and financing headwinds. New Taipei City and Taoyuan bucked the downturn in project value, while Taipei, Hsinchu city and county, Taichung, Tainan and Kaohsiung
Micro-Star International Co (MSI, 微星科技) is expanding notebook computer production in India after partnering with Indian electronics maker Syrma SGS Technology Ltd late last year, as the Taiwanese company seeks to tap into the local market. MSI also plans to manufacture some of its new gaming PCs powered by Nvidia Corp’s RTX 50 graphics cards in India, while adding more advanced and design-focused PCs and notebooks at Syrma’s plant in Chennai, a source told the Taipei Times yesterday on condition of anonymity. MSI’s deployment in India is driven not only by cost advantages, but also by India’s rapidly expanding consumer market and
RSS