Residential real estate transactions in Taipei City shrank 24 percent to hit an 18-month low last month, approaching a level they last saw at the onset of the global financial crisis in 2008 after the central bank introduced tightening measures in June to cool the property market, Sinyi Realty Co (信義房屋) said in a report yesterday.
Housing transactions totaled 3,850 units in the capital city last month, compared with 5,085 units in July, according to Sinyi Realty, the nation’s only listed brokerage.
Stanley Su (蘇啟榮), a senior researcher at the company, attributed the fall to the central bank’s introduction of selective credit controls in June that capping second-home mortgage loans at 70 percent of property values and canceling a grace period for principal payments for housing units in Taipei City and 10 popular areas in Taipei County.
“The size of the drop is rare for recent years, except during the economic downturn,” Su said, adding that on average, transactions typically retreat 10 percent in the third quarter, as it is considered the slow season.
Songshan District (松山) saw the biggest drop at 43 percent from a month earlier, followed by Wenshan District (文山) at 40 percent and Neihu District (內湖) at 33 percent, the report said.