The price of existing homes in Taipei may decline by 15 percent in the second half of the year if a controversial bill to revise the Urban Renewal Act (都市更新條例) is approved, a realtor said yesterday.
“The impact [on house prices] might be greater than that of the luxury tax,” said Wang Ying-chieh (王應傑), a senior executive of the General Chamber of Commerce (商業總會) and chairman of Eastern Realty Co (東森房屋).
The revised law would make it more difficult to renovate older housing units and investors would be less willing to buy existing homes, which would drag down property prices, Wang said.
According to the draft bill that has been proposed by the Ministry of the Interior, an urban renewal project can only be implemented if two-thirds to nine-tenths of the residents in an area agree to the project.
“The dreams of non-new housing investors have been shattered,” Wang told reporters on the sidelines of an event to promote virtual shops.
In addition, Wang forecast that non-new housing transactions in Taipei would drop from 6,000 to 7,000 per month to 4,500.