The nation’s rent index last month climbed another 2.36 percent to a new high of 103.13, despite inflation easing to 2.43 percent, as landlords passed rising holding costs to tenants, analysts said yesterday.
The measure, compiled by the Directorate-General of Budget, Accounting and Statistics (DGBAS), has gained for 19 months in a row, reviving interest in home buying, Taiwan Realty Co (台灣房屋) said.
The rent increase came amid flat house prices, as interest rate hikes and unfavorable laws on presale house contracts drive prospective buyers to the sidelines, the broker’s research head Charlene Chang (張旭嵐) said.
Photo: Hsu Yi-ping, Taipei Times
The increase climbed above 2 percent in most parts of Taiwan and reached 2.93 percent in southern Taiwan, Chang said.
The central bank hiked interest rates four times last year and might tighten again later this month to tame inflation and slow capital outflows in light of Taiwan’s widening interest rate gap with the US.
Furthermore, local administrators have raised house taxes on multiple homeowners to help cool the property fever.
Interest rate hikes and unfavorable taxes have added to the financial burden of landlords, prompting them to pass the extra cost on to tenants, Chang said.
The rapid growth in housing prices and improved job pay in southern Taiwan, bolstered by major tech firms’ investment plans, have lent support to higher rent, she said.
The steady advance has reignited interest in home purchases, as evidenced by last month’s consumer confidence survey, in which the sub-index on purchases of durable goods rose 7.45 points to 108.05, Chang said.
A confidence score of 100 or higher indicate optimism, meaning people are positive and keen about buying real estate in the next six months, the analyst said.
Sinyi Realty Inc (信義房屋) said the latest shelter index suggests an additional expense of NT$470 (US$15.26) per month for tenants living on a monthly income of NT$80,000.
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