Sat, Apr 29, 2017 - Page 11 News List

New homes increase as market stabilizes: survey

CORRECTION WARNING:Price concessions increased to 22.55 percent in New Taipei City, where high supply amid poor sales in some areas increased selling pressure

By Crystal Hsu  /  Staff reporter

Builders and developers launched NT$134.8 billion (US$4.46 billion) worth of presale projects and new homes last quarter, a 17.9 percent increase from a year earlier, as the market further stabilized, Cathay Real Estate Development Co (國泰建設) said in a survey.

The survey, conducted by National Chengchi University’s Taiwan Real Estate Research Center, showed that the figure was down 26.3 percent from three months earlier, due partly to a shift to building smaller, more affordable apartments.

“Buying interest improved, but developers remain conservative about launching new products over concerns about soft transactions,” the quarterly survey said.

The critical 30-day sales rate was 8.73 percent in the January-to-March period, up 0.49 percentage points from the previous quarter, the survey said.

“Property transactions remained weak and it is too early to speculate on a recovery,” the survey said, adding that the rate is highest in Taichung at 11.21 percent and lowest in New Taipei City at 7.31 percent.

Last quarter saw the entry of 152 new home projects across Taiwan, or a total of 7,946 units priced at NT$236,200 per ping (3.3m2), a mild 0.1 percent increase from three months earlier, it said.

Price concessions averaged 19.01 percent nationwide, widening from the previous quarter as sellers demonstrated more flexibility to facilitate transactions, it said.

Price concessions rose to 22.55 percent in New Taipei City, where new home prices fell the most, by 2.41 percent, as high supply in some districts increased selling pressure, the survey said.

New Taipei City might see an extended correction in light of poor sales, the survey said.

Prices for new home and presale projects were the most expensive in Taipei at NT$759,100 per ping and most affordable in Tainan at NT$166,300 per ping, the survey said.

The market in Taipei has showed signs of stabilization, judging from latest price and transaction data, it said.

The new home markets in Taoyuan and Hsinchu saw selling prices increase 15.42 percent as buyers grow increasingly comfortable with upscale residential products, the survey said.

The market in Kaohsiung was slack, with home prices averaging NT$182,800 per ping, a dip of 1.63 percent from three months earlier, the survey said.

The 30-day sales rate rose by 0.73 percentage points to 9.05 percent in the city, while price concessions rose by 1.92 percentage points to 20.03 percent, the survey said.

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