The property market took a turn for the worse in market confidence during the second quarter, with the confidence index in both Taipei City and county much more pessimistic than that in central and southern parts of the nation, a government report showed.
The quarterly housing demand survey, issued last week by the Council for Economic Planning and Development, showed the market confidence index for Taipei City had dropped to below 100 points for the first time since the third quarter of 2003.
"[The report] indicates a heavier burden for house purchases in Taipei City, shaking consumers' confidence in housing prices," the Institute for Physical Planning and Information (IPPI, 國土規劃及不動產資訊中心), which conducted the survey, said in a report published on its Web site.
The index for Taipei City fell to 97.55 in the second quarter, the survey said. A reading below 100 points indicates that a majority of consumers are pessimistic about the housing market outlook.
Kaohsiung City and county had the highest confidence index, at 110.4, while Taoyuan City and county registered the lowest, at 91.37. Meanwhile, Taipei County's index stood at 101.18, and Taichung City and county obtained 107.04, the survey said.
Overall, the market sentiment had turned conservative in the second quarter, with a confidence index of 100.87, or 6.83 points lower than in the previous quarter and eight points lower than the same quarter last year, the survey said.
The survey was conducted between July 1 and July 15, with 1,233 homeowners, 895 potential house buyers and 744 people who were looking to rent houses.
"The persistently rising prices, no sign of eased burden in house purchase on consumers and a more restrictive lending by banks have all caused impacts on the residential housing market," IPPI said in the report. "Whether this impact will help the market undertake a steady adjustment remains to be seen."
Residential houses cost an average of NT$5.79 million (US$175,700) -- or NT$179,000 per ping (3.3m2) -- in the second quarter, the survey showed.
Taipei City had the highest unit prices, at NT$316,000 per ping, in the second quarter, an increase of NT$54,000 per ping year-on-year, the survey said.
People in Taipei said they were willing to pay NT$9 million for a home in the city, it said.
Sinyi Real Estate Inc (
In a report on its Web site, Sinyi said that in the residential property market, first-time home buyers and those who want to change their homes are outranking those who are focusing on property investment.
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