Taiwan’s major property brokers saw transactions last month shrink more than 10 percent year-on-year as the COVID-19 pandemic dampened buying interest.
Evertrust Rehouse Co (永慶房屋), the nation’s largest broker by number of offices, saw a 15 percent decline in housing deals, with the retreat the most evident in Kaohsiung at 29 percent.
Buying interest — as measured by the number of prospective buyers — dropped 5 percent from February, as the number of confirmed COVID-19 cases in Taiwan increased by double digits each day from the middle of last month, Evertrust spokesman Jay Hsieh (謝志傑) said yesterday.
The data came as no surprise after consumer confidence last month tumbled to a 36-month low, while the number of people on unemployment subsidies rose to a 10-year high, Hsieh said.
Housing transactions fell 13 percent in Taipei, 21 percent in New Taipei City, and 18 percent in Taichung and Tainan, Hsieh said, adding that Taoyuan bucked the trend with a 9 percent increase, while Hsinchu County held steady.
Buying interest usually starts to gain momentum in March, he added.
This year’s showing has dashed hopes of any pickup in the spring sales season from March 29 to April 30, he said.
“Expectations of a recovery in the second quarter look unrealistic, if not utterly impossible,” Hsieh said.
Sinyi Realty Inc (信義房屋), the nation’s only listed broker, reported a 15 percent decline in housing transactions in the nation’s six special municipalities.
Wild market volatility worldwide helped weaken confidence in the property market, Sinyi research manager Tseng Chin-der (曾進德) said.
The central bank cut interest rates by 25 basis points on March 19, easing mortgage burdens on home owners, which is probably the reason that houses priced between NT$7 million and NT$15 million (US$231,374 and US$495,802) remained resilient, Tseng said.
While low borrowing costs are positive for housing transactions, the coronavirus would play a decisive role in the market’s future, he said.
Taiwan Realty Co (台灣房屋) fared better as it saw transactions decline in Taipei, Taichung, Tainan and Kaohsiung, but grow in New Taipei City, Taoyuan and Hsinchu County.
Taipei is prone to pessimistic sentiment due to its heavier exposure to external factors, while real demand propped up markets in areas where housing remained relatively affordable, the broker said.
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