Residential developers sharply cut new project launches in northern Taiwan in the first half of this year, as tight credit conditions, little policy support and a strong stock market weighed on housing demand.
The combined value of new housing projects — including presale and newly completed homes — totaled NT$461.6 billion (US$14.46 billion) in northern Taiwan in the first six months, down 36 percent from a year earlier, according to My Housing Monthly (住展雜誌).
Taipei and New Taipei City recorded the steepest declines. New project launches in Taipei plunged 50.2 percent from a year earlier to NT$77.07 billion, while New Taipei City fell 48.5 percent to NT$148.32 billion, it said.
Photo: CNA
My Housing Monthly research office director and spokesman Chen Ping-chen (陳炳辰) attributed the slowdown to restrictive housing policies and shifting investment preferences.
“The market has yet to see a meaningful catalyst this year,” Chen said. “While policymakers have signaled no further tightening, they have also not eased existing credit controls.”
Meanwhile, strong stock-market gains have continued to divert funds away from real estate, prompting developers to remain cautious, he said.
In Taipei, the decline was amplified by the absence of large-scale projects. In the first half of last year, two projects exceeded NT$10 billion each, while no projects of that scale were launched this year.
Only four projects worth NT$5 billion to NT$10 billion were introduced this year, half as many as a year earlier. Developers have prioritized clearing existing inventory over launching new projects, particularly in the high-priced Taipei market where sales cycles are longer.
New Taipei City saw similar weakness. Although four projects worth more than NT$10 billion were launched, this was still half the number seen a year earlier. The overall number of projects also fell by about half.
Taoyuan, another key market, saw launch values drop 36.3 percent to NT$129.2 billion. While three projects exceeded NT$10 billion, nearly two-thirds of new projects were valued at less than NT$1 billion, highlighting a shift toward smaller, lower-risk projects, it said.
The Hsinchu area was the exception, with launch values surging 53.7 percent from a year earlier to NT$81.3 billion. Two projects worth more than NT$10 billion drove the increase, reversing last year’s slowdown.
Looking ahead, Chen said several major developments are expected in the second half of the year in Taipei’s Nangang District (南港), Taoyuan’s Guishan District (龜山), Hsinchu County’s Baoshan Township (寶山鄉) and some New Taipei City districts.
However, some projects may remain delayed. Without policy easing that would redirect capital into property, the market is likely to stay weak through year-end, Chen said. Annual launch values could fall below NT$1 trillion for the first time since 2018.
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