Presale projects and new houses last year totaled NT$1.1 trillion (US$34.84 billion) in northern Taiwan, suggesting a 12.1 percent fall to a four-year low, as unfavorable policy measures and economic uncertainty prompted developers to stay conservative, Chinese-language My Housing Monthly (住展雜誌) said yesterday.
Taipei and Yilan County bucked the trend with annual increases of 8.7 percent and 36 percent to NT$290.18 billion and NT$27.97 billion respectively, while Keelung posted the steepest decline of 52.9 percent, the magazine said.
Presale projects and new houses slumped 27.2 percent to NT$244.67 billion in Taoyuan, dropped 15.3 percent to NT$372.77 billion in New Taipei City and decreased 8.4 percent to NT$157.26 billion in Hsinchu city and county, it said.
Photo: CNA
Developers adopted a conservative business approach last year to cope with unfavorable policy measures including interest rate hikes, a ban on transfers of presale project purchase contracts, credit controls and other restrictive terms, My Housing Monthly spokesman Chen Ping-chen (陳炳辰) said.
Other negative factors also included a global economic slowdown that weighed on Taiwan’s exports and political uncertainty linked to the recently concluded presidential election, Chen said.
Taipei managed a modest growth despite rising house prices caused by high-profile projects in Daan (大安), Songshan (松山) and Zhongshan (中山) districts, Chen said.
House prices in the capital have proved resilient in bad times, giving companies the confidence to go ahead with product launches, he said, adding that the pace of correction is limited in New Taipei City, as people grow increasingly interested in living in New Taipei City and Taipei.
Taoyuan fared badly as developers focused their attention on New Taipei City and Taipei, Chen said.
Yilan reported a fast advance due to the introduction of major apartment complexes in Suao (蘇澳) and Wujie (五結) townships, while a high comparison base in 2022 contributed to Keelung’s poor showing last year, he said.
The market might sail smoothly this year, as the presidential election is over and the incoming administration would be business-friendly, Chen said.
The central bank has since June last year held interest rates unchanged and is unlikely to turn hawkish moving forward, he said.
Developers who previously stayed on the sidelines might be more active this year, encouraged by continued interest subsidies for first-home purchases, Chen said.
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