Property market hit by gloomy economy

By Crystal Hsu  /  Staff reporter

Fri, Nov 08, 2013 - Page 13

The property market flashed a fifth “yellow-blue” signal last month, suggesting an extended period of soft sentiment in line with the nation’s disappointing economy, the Chinese-language Housing Monthly (住展雜誌) said yesterday.

The value of new construction projects totaled NT$57.25 billion (US$1.94 billion) last month, down 34.65 percent from September, the magazine reported.

While prospective home buyers and transactions dropped modestly last month from the previous month, the room for price concessions held steady, the report said.

Advertising surprisingly bucked the trend and rose 13 percent month-on-month to more than 50,000 batches, reflecting a desire on the part of developers and builders to accelerate sales, the report said.

The magazine now expects only a mild rebound in the run-up to the end of the year, a traditionally high season for property sales.

“However, the economy will affect buying interest and it remains to be seen if the nation can achieve 2 percent GDP growth this year,” the report said.

By geographic breakdown, transactions in New Taipei City (新北市) were concentrated in Tamsui (淡水), Linkou (林口) and Wugu (五股) districts, with low-priced housing remaining the mainstream, the report said.

Transactions in Taoyuan and Hsinchu cities also softened last month, but were underpinned by the low-priced housing segment.