Housing policies introduced this year have not only dampened buying interest, but also lengthened home searches, reflecting a cautious sentiment that may slow transactions, a survey by Sinyi Realty Inc (信義房屋) showed yesterday.
A majority of potential buyers said they needed six months to close deals, while 30 percent said they have looked around for more than a year, the survey found.
“Sustained gaps between buyers and sellers over house prices extend the search, which is a grueling process for buyers with real demand,” Sinyi researcher Tseng Chin-der (曾進德) said by telephone.
In the absence of policy disruptions, houses with fair asking prices have no difficulty finding buyers within one or two months, Tseng said, adding that serious buyers usually reach purchase decisions in less than six months.
However, now buyers show no interest in chasing prices and expect a 10 percent discount off market rates listed on a real-price registration Web site, Tseng said.
Buyers think patience will pay, after policymakers indicated plans to raise income taxes on property transaction gains, Tseng said.
The tactic failed over the past decade, as home prices soared in Taipei and New Taipei City, as well as in parts of Greater Taoyuan, Greater Taichung and Greater Kaohsiung, Tseng said.
The forecasts of price corrections could manifest next year, if transactions drop below 320,000 units this year as expected, which would the lowest number in 13 years, Tseng said.
Public sentiment lends support to caution, the survey found, as 55 percent of respondents this quarter expected home prices to fall going forward, up from 47 percent three months earlier.
Just 12 percent expect housing prices to climb higher, down from 13 percent in the preceding quarter, the survey found.
A total of 53 percent backed government plans to levy separate taxes on certain property gains, calling it an effective move to address the nation’s increasing unaffordable housing, the survey said.
The market could stage a comeback if the Ministry of Finance fails to press ahead with its tax plans, the survey said, after questioning 1,051 respondents between Dec. 11 and Wednesday last week.
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