Developers and builders last quarter rolled out NT$414.3 billion (US$13.07 billion) of presale and new housing projects, up 55.2 percent from the first quarter, as they remained unfazed by unfavorable policy measures to tame the property market, a report by Cathay Real Estate Development Co (國泰建設) said.
That translated to 42.43 percent growth when compared with a year earlier, uplifted by higher asking prices nationwide, the quarterly survey found.
“The data suggests a bullish market, but it remains to be seen if the momentum can be sustained, as the market is digesting unfavorable policy measures amid an economic slowdown,” the report said.
Last quarter the central bank kept interest rates unchanged, but stiffened lending terms for second-home mortgages, while research institutes cut their forecasts for the nation’s GDP growth this year to below 2 percent.
The Executive Yuan also approved raising the cap on house taxes from 3.6 percent to 4.8 percent for multiple home owners, beginning in July next year if the legislature passes the bill.
“The backdrop merits a cautious attitude as the recovery last quarter could be fragile and short-lived,” the report said.
Developers priced their property at an average NT$495,400 per ping (3.3m2) during the second quarter, up 5.85 percent from the preceding quarter, it said.
Specifically, prices grew 9.13 percent to NT$1.19 million per ping in Taipei and 1.49 percent to NT$559,700 per ping in New Taipei City, the report said.
Meanwhile, price concessions shed 0.24 and 1.31 percentage points to 5.3 percent and 6.66 percent respectively, it said.
Presale and new house prices in Taichung reported the steepest advance of 13.39 percent to NT$474,200 per ping, with room for price negotiation shrinking to 6.7 percent, as firms focused on central Taiwan to take advantage of its improving infrastructure, the report said.
Asking prices rose 2.84 percent to NT$344,700 per ping in Tainan and 2.1 percent to NT$320,800 per ping in Kaohsiung, it said.
Prices reached new highs in major cities even though transactions advanced at less impressive pace, it added.
The 30-day sales rate gained 0.58 percentage points to 11.93 percent in Taichung and expanded 5.32 percentage points to 18.42 percent in Tainan, the report said, adding that the gauge also registered positive movements elsewhere in Taiwan.
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