The real estate market continued to suffer from a downturn in the third quarter, with a composite measure of the housing market showing a large drop of 1.85 percent from the previous quarter, a report by the Architecture and Building Research Institute said yesterday.
The composite index of the property market plunged to 101.78 in the third quarter, Ho Ming-chin (
The leading index, which provides an outlook on the property market's prospects in the next three quarters, also dropped slightly by 0.21 percent sequentially to 102.46 in the third quarter, Ho said.
"But the leading index has dropped for three consecutive quarters, which indicates that the market has begun to make adjustments," said Chang Chin-oh (張金鶚), a professor at National Chengchi University's department of land economics.
Chang added that the market was unlikely to rebound for one or two more quarters.
With the highest score set at 20, the monitoring indicator dropped one point quarter-on-quarter to 10 in the third quarter, flashing a "yellow-blue" light -- signifying a slowdown -- for two consecutive quarters.
"The real estate market could slip further because of oversupply and overpricing," Chang said. "Home buyers and investors need to be more careful and cautious when making decisions."
A poll conducted by the institute also showed that 61 percent of the 143 surveyed companies believed the property market would further deteriorate; a mere 9 percent thought the market would rebound next quarter.
Meanwhile, a real estate agency report said that the M-shaped society phenomenon had begun to affect the local property market as sales of houses that cost less than NT$6 million (US$184,500) per unit dropped 10 percent last month from a year earlier.
However, sales of upscale properties worth more than NT$30 million per unit jumped 70 percent, a report by Yungching Real Estate Agency (
"First-time buyers and wage-earners fear that rising interest rates and tight bank credit may dent the market and are more conservative in buying homes even though they can afford those lower-priced properties," said Liao Ban-sheng (
Home buyers with higher income, on the contrary, were not affected by the real-estate market's fluctuations since they buy higher-priced units that offer more sustainable value, he said.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS