The nation’s housing price index rose to 101.59 in the second quarter of this year, up from three months earlier and increasing for the fourth consecutive quarter as home prices rose modestly, helped by GDP growth and low interest rates, Ministry of the Interior data showed yesterday.
The findings lent support to observations of a slow, but gradual recovery in the local property market, with the pace of recovery more evident in the south than the north, analysts said.
The nation’s economy picked up 2.4 percent year-on-year during the April-to-June period and likely contributed to the property price hikes, the ministry’s report said, adding that low borrowing costs also helped stimulate buying interest.
Mortgage interest rates averaged 1.622 percent in the second quarter at state-run lenders Land Bank of Taiwan (土地銀行), Taiwan Cooperative Bank (合庫銀行), Bank of Taiwan (臺灣銀行), Hua Nan Commercial Bank (華南銀行) and First Commercial Bank (第一銀行), the report said.
The property market’s performance was also boosted by bullish domestic financial markets, it added.
The supply side made contributions by introducing more new construction projects, totaling 35,261 units, and obtaining 5,707 land0use licenses, it said.
Growth momentum in terms of supply was high at 78,927 deals, compared with the number of transactions during the same period last year, the ministry said.
The latest housing price data meant home ownership grew increasingly untenable, with an average apartment costing 8.79 times the average annual household income, up 0.13 points from three months earlier, a separate report by the ministry found.
The figure rose to 14.45 times income for homebuyers in Taipei, where the mortgage burden took up 59.25 percent the average household income, it said.
The burden was also heavy in New Taipei City, where average home prices amounted to 11.85 times of the average household income, of which 48.59 percent would be used for mortgage payments for 20 years, it said.
The average mortgage burden was 36.06 percent nationwide, with Taichung and Changhwa also surpassing the threshold at 38 percent and 36.68 percent respectively, the report said.
Mortgage payments in Hualien, Hsinchu and Nantou counties were just below the average at 35.63 percent, 33.77 percent and 33.14 percent respectively.
Kaohsiung followed at 31.48 percent.
A mortgage burden of less than 40 percent of the average household income suggests low affordability, while a burden higher than 50 percent indicates ultra-low affordability, the ministry said.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,