Mon, Apr 08, 2019 - Page 15 News List

Property market improving: survey

Staff writer, with CNA

The property market in northern Taiwan showed signs of improvement after an index gauging the market climate indicated an end to seven months of contraction, a survey released by the Chinese-language Housing Monthly (住展雜誌) showed.

Five of the six factors in the index, including the listings of newly built homes and presale residential projects, moved higher last month, helping the market climb out of contraction mode, the survey found.

The housing index for northern Taiwan rose 5.4 points from February to 32.3 points.

The index was “yellow-blue” last month, signaling sluggish growth, improving from February’s “blue,” which suggests contraction.

Under the magazine’s five-color system, “red” indicates overheating, “yellow-red” suggests fast growth and “green” represents stable growth.

The index covers major counties and cities in northern Taiwan, such as Taipei, New Taipei City, Keelung, Taoyuan, and Hsinchu and Yilan counties, which account for more than half of total residential and commercial property transactions in Taiwan.

The listing of presale residential projects was last month valued at more than NT$30 billion (US$973 million), higher than the past few months, Housing Monthly research manager Ho Shih-chang (何世昌) said.

Among the newly listed projects, which put up more than 1,000 units for sale, 10 sales plans were valued at NT$1.5 billion each, Ho said.

Of the six factors in the housing index, only the sub-index for home price negotiations remained unchanged for the fourth month in a row at 5.46 points, the survey found.

The sub-index for listings of newly built residential property rose to 6.9, while those for presale residential property climbed to 5.27, advertising for housing sales rose to 4.18, number of visits by potential buyers rose to 5.76 and transactions climbed to 4.69, the survey showed.

Ho said the increasing number of transactions and visits by potential buyers pointed to growing buying interest in some areas, such as in Taipei’s Beitou District (北投), New Taipei City’s Banciao (板橋) and Sanchong (三重) districts, and Taoyuan’s Jhongli (中壢) and Neili (內壢) districts.

With buying interest returning, many home investors focused on units smaller than 10 ping (33.06m2), he said.

For example, a residential project in Taipei’s Wenshan District (文山) listed units as small as 7 ping at a starting price of NT$5.88 million, he added.

However, despite the improving housing index, it is too early to tell whether the momentum will continue, Ho said.

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