Tue, Aug 02, 2011 - Page 11 News List

Real-estate market starts to recover

By Crystal Hsu  /  Staff Reporter

Major realty companies said yesterday they saw an increase in home sales volume and prices last month from a month earlier as the market recovered a degree of confidence following the imposition of the luxury tax.

Sinyi Realty Co (信義房屋), the nation’s only listed property broker, said its housing transactions gained 17 percent nationwide last month from June, when the market was sluggish due to the implementation of the new tax. The company did not supply value numbers.

Housing prices averaged NT$318,000 (US$11,027) per ping (3.3m2), rising 0.5 percent month-on-month, or 13.8 percent from a year earlier, Sinyi said.

“The figures show the luxury tax continues to weigh on the market, but its impact is subsiding,” Sinyi head researcher Stanley Su (蘇啟榮) said.

Housing transactions jumped 25 percent in Taipei City last month, supported by deals of relatively affordable homes in second-tier districts, Sinyi said.

Home costs dipped a modest 3 percent to NT$540,000 per ping in the capital, but gained 2.4 percent to NT$281,000 per ping in New Taipei City (新北市), the broker said.

Chinatrust Real Estate Co (中信房屋) said its home transactions increased 4.4 percent across the country last month from one month earlier, while housing prices edged up 5.86 percent.

Home sales improved 17.11 percent in Taipei City as small apartments in prime locations regained popularity while housing prices -increased 8.22 percent to NT$535,800 per ping, the broker said.

“The market appears to be emerging from concerns over the luxury tax based on the figures,” Chinatrust Real Estate said.

H&B Business Group (住商不動產), the nation’s largest broker by number of franchises, said its home sales picked up 10 percent last month from June, although they were still lower than in May.

“The data are surprising as we had expected an extended period of corrections,” H&B chief researcher Jessica Hsu (徐佳馨) said.

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