Tue, Jul 05, 2011 - Page 12 News List

Housing prices will continue to climb, survey says

By Crystal Hsu  /  Staff Reporter

Nearly half of respondents expect housing prices to stay flat this quarter from last quarter, but climb higher over the next year, one month after the government instituted a luxury tax to curb property costs, a survey released yesterday showed.

The survey, conducted by Sinyi Housing Realty (信義房屋), the nation’s only listed brokerage, further indicated that a large number of people remain interested in buying a home despite the new luxury tax.

Forty-six percent of respondents held a neutral view about housing prices in the coming three months, while 33 percent were confident about a price hike and the remaining 21 percent expected a fall in prices, the survey found.

Forty-eight percent expected home costs to rise over the next year, while 25 percent were neutral and another 27 percent were pessimistic, the survey said.

Sinyi head researcher Stanley Su (蘇啟榮) said the survey showed the luxury tax would be ineffective in triggering a price correction, even though it is helping to stop price hikes.

Solid demand is helping sustain property prices after speculators exited the market ahead of the implementation of the levy on June 1, he said.

Seventy-two percent said the tax did not ease their home purchasing burden, while a majority of prospective buyers said the levy did not dent their interest in buying a home, the survey said.

A quarter of the respondents cited a large supply of fair-priced housing as the best way to rein in rising property prices, while 18 percent said interest hikes could achieve the intended effect, the survey said.

Another 23 percent expressed no confidence in any tightening measures, while 4 percent voiced faith in the luxury tax, the survey said.

The survey was conducted by e-mail between June 24 and June 29.

It had 1,452 responses with a margin error of 5 percent.

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