New housing projects in Taiwan’s six special municipalities, as well as Hsinchu city and county, are projected to total NT$710.65 billion (US$23.61 billion) in the upcoming fall sales season, a record 30 percent decrease from a year earlier, as tighter mortgage rules prompt developers to pull back, property listing platform 591.com (591新建案) said yesterday.
The number of projects has also fallen to 312, a more than 20 percent decrease year-on-year, underscoring weakening sentiment and momentum amid lingering policy and financing headwinds.
New Taipei City and Taoyuan bucked the downturn in project value, while Taipei, Hsinchu city and county, Taichung, Tainan and Kaohsiung all slipped to levels not seen in years, the platform said.
Photo: CNA
“Buyers are refusing to enter the market on expectations of price corrections, discouraging developers from bringing new supply and leaving the fall season particularly soft,” said the site, which is operated by Addcn Technology Co (數字科技).
Multiple headwinds — from tariff impacts to tighter mortgage conditions — have fueled caution, even though policymakers have recently eased some credit rules to address a mounting outcry.
Developers still face a dilemma over whether to launch projects in a slowing market, with the central bank set to review its monetary policy and selective credit controls at a quarterly board meeting tomorrow.
Many projects delayed from last year have been pushed into this season, leaving little room to maneuver, the platform said, adding that some are forced to enter the market despite the risks.
New Taipei City stood out with 55 projects, led by a major office development in Sinjhuang District (新莊) by Highwealth Construction Corp (興富發) and a large residential complex in Sanchong District (三重) by JSL Group (甲山林). Each project is expected to generate more than NT$10 billion in sales.
Taoyuan also held strong, with northern districts such as Bade (八德) and Gueishan (龜山) posting projects of more than NT$10 billion in total.
By contrast, Taipei’s prospects shrank noticeably from a year earlier and the spring sales season, as fewer large-scale developments weighed on overall totals.
Separately, a survey by FBS Internet Technology Co (富比士網路科技) showed that a sizeable number of first-home buyers might sell presale houses upon delivery if they fail to secure adequate mortgages.
Many buyers assume they can obtain loans covering up to 85 percent of the purchase price, but banks have since September last year lowered the cap to 70 percent to comply with the central bank’s efforts to slow real-estate lending and avoid overconcentration.
About 34 percent of respondents said they would approach multiple lenders, while 29.2 percent would turn to family or friends for financial support. Nearly 11 percent said they might default.
If all else fails, 7.5 percent said they would resort to high-interest unsecured loans, while 1.7 percent would consider underground lenders, raising potential financial risks, the survey found.
The Financial Supervisory Commission has excluded first-home mortgages from the 30 percent cap on housing loans, while the central bank is reportedly considering whether to exempt them from anti-loan concentration rules.
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