Thu, Mar 25, 2010 - Page 11 News List

House prices too high, survey shows

By Ted Yang  /  STAFF REPORTER

As public sentiment toward the local real estate market continued to improve in the second half of last year, nearly 87 percent of the public considered house prices to be unreasonable, a survey by a government institute showed yesterday.

The survey, which polled 7,400 people, including new homeowners and people looking for a home, between Jan. 1 and Jan.31, found that the public remained less upbeat about the property sector over the next year because of soaring house prices.

“Public confidence on property prices over this year dropped to 119 points in the second half of last year, down from 145 registered in the first half,” said Chang Chin-oh (張金鶚), land economics professor at National Chengchi University.

MOMENTUM

The results suggest that although house prices appear to be rising on increased demand for residential property, the momentum supporting increased prices might become weaker over time, the survey conducted by the Institute for Physical Planning and Information (國土規劃及不動產資訊中心) showed.

WARY BUYERS

Chang said those who intended to purchase property expressed less optimism in particular toward the property market than those who had already purchased houses, noting that it was worthwhile to keep an eye on whether demand for property would decrease.

The survey showed that 90 percent of people looking for a house felt that prices were unreasonable, followed by 87 percent of those who intended to rent a home, 86 percent of those who had just rented a home and 76 percent of new homeowners.

BIG BURDEN

Almost 50 percent of people looking to buy a property believed that the government’s move to end preferential mortgage programs was having a negative impact on the property market, while more than 40 percent said that they would be under a tremendous financial burden after buying a house.

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