The nation’s major housing brokers this month reported a slump in transactions year-on-year despite a pickup from last month, as loan restrictions and economic uncertainty dampened buying interest.
Evertrust Rehouse Co (永慶房屋), the nation’s largest property broker by number of offices, said it observed a 41 percent retreat in deals and the slowdown hit every major region.
Transactions tumbled 35 percent in Taipei, 39 percent in New Taipei City, 47 percent in Taoyuan, 49 percent in Hsinchu, 44 percent in Taichung, 38 percent in Tainan and 40 percent in Kaohsiung, the broker said, citing internal data.
Photo: CNA
Evertrust deputy research head Chen Chin-ping (陳金萍) attributed the poor showing to economic headwinds, the central bank’s credit controls and a high base.
The housing market approached its peak in May last year on the back of supportive policy measures and inflation expectations, she said.
Buyers have turned conservative even though the US and China have agreed to a 90-day truce in tariff exchanges that would allow transactions to pick up compared with last month, Chen said.
However, buyer confidence recovered only modestly as uncertainties linked to tariffs linger and mortgage loans remain difficult to obtain, Chen added.
“The absence of a long-term agreement continues to cast a shadow over the property market,” Chen said.
Taiwan is vulnerable to fluctuations in global trade and a slowdown in key trading partners could weigh on its economic growth, affecting job stability and household income — two critical factors for buyers, Chen said.
Likewise, H&B Realty Co (住商不動產), the nation’s largest broker by number of franchises, said that transactions in its network constituted only half of the volume recorded in May last year, despite there being more working days in the month this year.
Buying interest remained soft, although some homeowners — especially those selling old apartments or less desirable properties — lowered their asking prices to facilitate deals, H&B chief researcher Jessica Hsu (徐佳馨) said, adding that the situation is unlikely to turn around in the short term.
Deals tumbled 51.1 percent in New Taipei City, 52.7 percent in Taoyuan and 47.9 percent in Kaohsiung, Hsu said.
Pre-sale home deliveries in northern Taiwan added to supply, but buyers preferred to wait and see, she said.
Chinatrust Real Estate Co (中信房屋) shared a similarly bleak report after transactions at its network declined 30.8 percent this month from a year earlier.
The downtrend is consistent across the six major municipalities: deals slumped 28.3 percent in Taipei, 33.3 percent in New Taipei City, 27.7 percent in Taoyuan, 28.9 percent in Taichung, 32.8 percent in Tainan and 36.7 percent in Kaohsiung, the broker said.
Chinatrust recommended that people prioritize buying a home for self-occupancy and carefully assess their financial standing, as the market is likely to consolidate for a while.
“It is wise to avoid rushing into the market or blindly chase high prices,” the broker said.
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