The property market, which has seen transactions plunge because of the government’s plan to introduce a luxury tax, may trigger panic selling ahead of the levy’s implementation, real-estate analysts said yesterday.
Sinyi Realty Co (信義房屋), the nation’s only listed real-estate brokerage, saw its number of home sellers surge 30 percent last month from January, the sharpest ever increase, after the government unveiled plans to tax short-term home transfers, head researcher Stanley Su (蘇啟榮) said.
February is removed from the monthly comparison due to its fewer working days, Su said.
Photo: Sam Yeh, AFP
The analyst expects the number of home sellers to accelerate this month and next month after the proposed tax passed an initial review by the legislature’s Finance Committee on Wednesday, with a suggestion that the implementation of the tax be brought forward from July 1 to June 1.
“The bill’s headway has deepened the cautious sentiment and may drive cash-strapped sellers to bow out one month earlier,” Su said by telephone.
So far, most sellers have refused to soften prices, but that may change as the tax looms, Su said.
The luxury tax, intended to curb property speculation, will impose a 10 percent levy on properties resold within two years of purchase. The rate would climb to 15 percent of the transaction price if properties are sold within one year of purchase.
“Moving the implementation date up one month should put a quicker end to the tug of war over pricing differences,” Su said.
Evertrust Rehouse Co (永慶房屋), another leading real-estate brokerage, saw its number of sellers jump 20 percent last month from February after seasonal adjustment, head researcher Jeffry Huang (黃增幅) said.
The bulk of the new supply is concentrated in New Taipei City (新北市), where home prices have risen faster than the rest of the country, Huang said.
Potential buyers expect house prices to drop 15 percent to 20 percent in New Taipei City and 5 percent to 10 percent in Taipei City, the analyst said.
“Home sellers should be willing to make bigger concessions now that the tax bill has passed committee review and may soon clear the legislature,” Huang said by telephone.
Home prices dipped 3 percent to 6 percent in different parts of the nation last month, he said, citing company data.
Huang is less optimistic about the market outlook, saying the correction could drag on if the government introduces more tightening measures.
The Financial Supervisory Commission recently raised capital requirements for purchases of undeveloped land by life insurance companies to help check land hoarding.
Huang Tien-mu (黃天牧), director-general of the commission’s Insurance Bureau, yesterday confirmed a probe into Far Glory Life Insurance Co’s (遠雄人壽) recent purchase of a plot of undeveloped land in Sinjhuang (新莊), New Taipei City.
Far Glory Life, the sister company of Farglory Land Development Co (遠雄建設), told local media it would secure a building permit within nine months as legally required.
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