Concerns over the luxury tax are fading as many people expect Taiwan’s housing prices to remain steady this quarter and pick up in the coming year on the back of investment needs and limited supply, according to a survey released yesterday.
The survey by Yung-Ching Rehouse Co (永慶房屋), the nation’s largest broker by outlets, showed 58 percent of respondents had a positive view on housing prices in the next 12 months, up from 31 percent three months earlier.
The number of respondents with a long-term bearish outlook fell to 26 percent, from 52 percent, the survey found.
For the near future, 42 percent expect home prices to stay neutral or inch up this quarter, while the number of pessimists dropped to 19 percent, from 65 percent in the first quarter when news of the luxury tax cut housing transactions by 30 percent, the survey said.
Chuang Meng-han (莊孟翰), industrial economics professor at Tamkang University, said the findings affirmed his prediction made months earlier that the special levy would not trigger a price correction in light of excess liquidity, low interest rates and limited supply.
“Keen investment needs and a lack of supply supported housing prices after the exit of speculators,” Chuang told a media briefing. “Complaints about unaffordable housing will continue to plague the government if the trend persists and it most likely will.”
In Taipei City last year, first-time registered households stood at more than 10,830, accounting for only 17 percent of 63,350 home transfers during the same period, the academic said.
The gap resulted partly from a supply shortage in the capital city and would deepen expectations of price hikes, Chuang said.
Chuang, who tracks the nation’s property market, said housing prices were unreasonable if the hikes exceeded GDP growth.
Home prices in the capital expanded 192 times between 1966 and last year, while GDP increased 70 times and the inflation reading gained seven times, he said.
“It seems property prices jumped ahead of the expected inflows of Chinese and other foreign capital after Taiwan improved ties with China,” the academic said.
The upbeat sentiment prompted 43 percent of respondents to consider entering the market in the next six months, the survey showed.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
STAYING AHEAD: TSMC expects its sales this year to grow 14 to 19 percent and could spend up to US$3.52 billion on research and development, leaving its rivals far behind Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported that the US last year approved 99 percent of its patent applications, which placed the tech giant among the top patent holders in the US. In its Corporate Social Responsibility Report, TSMC said it last year secured about 3,600 patents worldwide, including more than 2,300 in the US. As of the end of last year, TSMC owned more than 39,000 patents, the report said. The company last year filed almost 6,500 patent applications worldwide and ranked among the top 10 patent applicants in the US. In Taiwan, it was the largest patent applicant for the fourth