Transactions of residential and commercial properties in Taiwan are likely to register the lowest number since 2001, Chinatrust Real Estate Co (中信房屋) said yesterday, citing a sluggish domestic economy and dampened sentiment toward the property market.
The real-estate agency forecast that transactions of homes, offices and shops for this year would register 271,000 units, compared with 320,598 units last year.
The figure for this year would be the lowest since 2001, when housing transactions stood at 259,494 units, the agency said.
LOWEST ON RECORD
The forecast was similar to a prediction by H&B Business Group (住商不動產), which said that this year’s sales of residential and commercial housing in Taipei and New Taipei City, two of the most-watched property markets, would be the lowest on record due to the weak domestic economy.
H&B forecast full-year sales of fewer than 30,000 units in Taipei and fewer than 50,000 units in New Taipei City, the nation’s most populous municipality.
However, Chinatrust Real Estate said that housing transactions are expected to increase next year on hopes that a new government would come up with economic stimulus measures when it takes office on May 20, following the Jan. 16 presidential and legislative elections.
FALLING PRICES
It is estimated that transactions of homes, offices and shops would rise to 281,000 units next year, the agency said.
However, home prices are expected to fall by about 10 percent next year, Chinatrust Real Estate said, citing a survey.
The survey found that 63.5 percent of property dealers think home prices would drop no more than 10 percent next year, while 14.4 percent expect a sharper decrease.
INTEREST-RATE CUTS
Since the central bank has cut its key interest rates twice in three months, property prices are unlikely to shrink significantly next year, the agency said, adding that a 10 percent drop seems to be the average expectation in the local market.
The survey indicated an expected decline both in house prices and the number of transactions in the first quarter of next year, before a rise in transactions after the new government takes office in May, Chinatrust Real Estate said.
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