Presale and newly completed house prices in northern Taiwan rose last quarter from a quarter earlier, as developers passed cost increases linked to credit controls and higher building material prices on to buyers, the Chinese-language My Housing Monthly reported last week.
Presale and new housing prices rose 0.5 to 2.2 percent to record highs in northern Taiwan, except in Yilan County, during the January-to-March period, as developers set prices in line with the upswing in construction costs and found support in real demand and economic growth, My Housing Monthly research manager Ho Shih-chang (何世昌) said.
“Price hikes are likely to be sustained in light of rising building material and labor costs,” Ho said, adding that developers are also seeking to pass extra costs related to credit controls and property tax hikes on to homebuyers.
Photo: CNA
Stricter lending terms for land purchases and unsold houses mean higher property development costs, as do heavy taxes on house transfers — including presale contracts — within five years of purchase, Ho said.
Taiwan’s robust economy, low interest rates and excessive liquidity would continue to lend support to real demand, Ho said.
Presale and new housing prices in Taipei averaged NT$902,000 (US$32,056) per ping (3.31m2), increasing 1.8 percent from three months earlier, My Housing Monthly said.
Price increases were more evident in the capital’s second-tier districts, such as Nangang (南港), Neihu (內湖), Wenshan (文山) and Beitou (北投), it said, adding that sale rates are healthy.
Presale and new housing prices increased 0.5 percent to NT$409,000 per ping in New Taipei City, up for the fourth straight quarter, the publication said.
Prices in Keelung rose to a new high of NT$217,000 per ping and continued to break records in Taoyuan, it said.
Presale and new housing prices in Hsinchu rose 2.2 percent quarter-on-quarter to NT$237,000 per ping, thanks to solid demand and a lack of new supply, it said.
Yilan bucked the trend with a 1.4 percent decline in asking prices, as developers shifted their focus to relatively affordable projects in less popular locations, Ho said, adding that the drop would likely be short-lived.
Looking forward, presale projects might drop significantly after stricter property taxes come into effect in July, Ho said.
Online property information provider Ubee (屋比房屋) said that the number of presale contracts for sale spiked by 7,000 in the past month to 35,000 nationwide, ahead of the new property taxes.
Sellers anxious to exit the market would lower their prices, it said.
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