Thu, Oct 31, 2019 - Page 11 News List

Presale, new projects rise 25.3 percent in Q3: survey

By Crystal Hsu  /  Staff reporter

Presale and new housing projects last quarter totaled NT$418.2 billion (US$13.7 billion), an increase of 25.3 percent from a year earlier, supported by a steady recovery in buying interest for small apartments, a quarterly survey released yesterday by Cathay Real Estate Development Co (國泰建設) showed.

Compared with three months earlier, the figures would translate into a 16.1 percent gain, affirming a positive cyclical movement, the firm said in a report.

“The market is gathering momentum, judging by housing prices and transaction volume,” the report said, adding that the price increases were more evident in southern Taiwan than in the north.

New Taipei City reported the biggest construction volume of NT$139.7 billion in the quarter ended last month, rising 34.4 percent year-on-year, it said.

Kaohsiung ranked second with NT$74.8 billion of presale and new housing projects, followed by Taichung at NT$67.8 billion and Taipei at NT$66 billion, it added.

However, bucking the growth trend, the volume in Taoyuan dropped 48.9 percent to NT$31.9 billion and weakened 22.3 percent to NT$19.5 billion in Tainan, the survey found.

Chang Chin-oh (張金鶚), a retired professor of land economics who was in charge of the survey, said that it was too early to paint the pickup as a full-fledged recovery for the local property market, as small and relatively affordable apartments dominate transactions.

Small units might be relatively affordable in terms of total prices, but they might require greater costs per ping (3.3m2), Chang said.

“Let us see how long the recovery for small apartments will last, as housing prices are approaching new highs in Tainan, Kaohsiung, Taichung, Hsinchu and Taoyuan,” he said.

New housing prices in Taichung gained 4.93 percent from three months earlier to NT$239,000 per ping, while those in Kaohsiung picked up 4.58 percent to NT$232,100 per ping, the survey showed.

The pickup was 2.29 percent in New Taipei City, where new home prices stood at NT$372,000 per ping, while prices rose 2 percent in Tainan to NT$214,800 per ping, the report said.

New housing prices in Taipei shed 3.28 percent to NT$820,600 per ping and fell 5.22 percent to NT$239,100 per ping in Taoyuan, the survey found.

Price concession rates averaged 15.02 percent, while the 30-day sales rate stood at 11.27 percent, the report said.

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