New construction volume could drop by 5.5 percent nationwide as uncertainty over the quantitative easing (QE) policy in the US and next year’s seven-in-one elections in Taiwan may sideline some development projects, the Chinese-language Housing Monthly (住展雜誌) predicted.
Presale and newly completed housing projects could total 1.37 trillion (US$46.21 billion) next year, down 5.5 percent from an estimate of NT$1.45 trillion this year, as some developers may turn cautious in anticipation of the tapering of US quantitative easing, the publication’s spokesman Ni Tze-jen (倪子仁) said in a report.
The mayoral elections in the five major municipalities next year could deepen the conservative sentiment, Ni said, as soaring house prices top the list of public complaints.
In northern areas, new construction volume is forecast at NT$1 trillion next year, falling 10 percent from NT$1.1 trillion this year, the report said.
The QE exit would likely fuel expectations of interest rate hikes at home and abroad, prompting potential buyers to reconsider entering the property market, the report said.
In Greater Taichung, new construction could rise by 25 percent to NT$250 billion next year, from the NT$200 billion forecast for this year, backed by continued southward migration of property funds, the report said.
However, new construction could contract 20 percent to NT$120 billion in Greater Kao-hsiung next year, from NT$150 billion this year, based on data the magazine has gathered thus far, the report said.
House prices are likely to hold steady in northern Taiwan, the report said.
New luxury homes in the capital may hit between NT$3 million and NT$4 million per ping (3.3m2) next year, as developers have invited international architects and designers to add value to their projects, Ni said.