Property prices showed signs of weakening in the third quarter and may further soften in the last quarter of the year as demand drops, the Council for Economic Planning and Development said in a report released yesterday.
The composite index of confidence in housing prices slid 5.52 points in the second quarter to 102.48, the report said.
Specifically, the index of confidence in housing prices in the near term and long term dropped by 4.43 to 107.56 points and 6.6 to 97.4 points, respectively, it said.
"Weakening demand may not be able to support housing prices, which are likely to be unstable in the future," said Chang Chin-oh (張金鶚), professor of land economics at National Chengchi University, who conducted the report.
With prices falling, home affordability improved in the third quarter, the report said.
On average, the public has to save for 6.5 years to buy a home, down from 6.52 years in the second quarter. Those who want to purchase a house in Taipei will have to save for an average of eight years, down from 8.7 years in the previous report.
The figures showed that properties in Taiwan, especially in Taipei, were still high, Chang said.
The report was conducted by polling consumers who have recently bought houses or those who were looking to buy houses from Oct. 1 to Oct. 15. The survey has 2,114 valid respondents.