The nation’s major property brokers saw property deals last month decline from one month earlier as tightened credit controls and other unfavorable policies drove some buyers to the sidelines.
Evertrust Rehouse Co (永慶房屋), the nation’s largest realtor by number of offices, reported a 3 percent fall in housing transactions after the central bank cut loan-to-value ratios to between 55 and 65 percent, from 80 percent, on purchases by corporate and owners of multiple homes, as well as on unsold houses and land financing.
The effects have been mild and might prove short-lived, as the credit controls introduced on Dec. 8 do not target buyers with real demand, such as first-time home buyers and people with relocation needs, Evertrust spokesman Jay Hsieh (謝志傑) said.
Buying interest weakened in the first half of last month, but mostly recovered in the second half after buyers gained a better understanding of the policies, Hsieh said.
Transactions in major cities nationwide softened by 4 to 7 percent, but Taipei bucked the trend and clocked a 3 percent increase from November, Hsieh said.
Compared with 2019, housing transactions soared 30 percent, helped by growth in the domestic economy, excessive liquidity and low interest rates, Hsieh said, adding that seasonality also lent support.
Sinyi Realty Co (信義房屋), the nation’s only listed broker, said that its trading volume last month cooled 10 percent, as the market needed time to assimilate unfavorable policies.
Apart from tightened lending terms, the Ministry of the Interior banned transfers of unlicensed presale housing projects and the Financial Supervisory Commission stepped up inspections of real-estate financing.
Deals in the Greater Taipei area stayed relatively buoyant, with apartments priced between NT$10 million and NT$20 million (US$350,779 and US$701,557) remaining popular, Sinyi research manager Teng Ching-der (曾敬德) said.
Conservative sentiment was most evident in Taoyuan and Hsinchu, where developers had introduced presale products using aggressive marketing tactics, Sinyi said.
The broker expects the market to digest the policy changes soon, as long as Taiwan’s economic recovery continues and borrowing costs remain accommodative, Tseng said.
H&B Realty Co (住商不動產) saw property transfers shrink 4.9 percent, while Chinatrust Real Estate Co (中信房屋) reported an 8.6 percent retreat.
H&B research director Jessica Hsu (徐佳馨) said that unfavorable policies dampened buying interest a bit, with southern Taiwan faring worse than northern Taiwan.
Chinatrust Real Estate shared similar comments, saying that potential buyers, especially in Taoyuan, became cautious following the credit control measures.
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