On Sept. 15, the Ministry of the Interior released its report on “low electricity consumption houses” (that is, vacant homes) and new homes for sale in the second half of last year — an analysis based on electricity consumption data in November and December.
The report showed that there were 882,634 vacant homes in Taiwan, or a vacancy rate of 9.9 percent. It was the first time that the rate had fallen below double digits since data collection began in 2009. Kinmen County had the highest vacancy rate at 18.3 percent, with 4,164 vacant homes, while New Taipei City had the highest number of vacant homes, at about 131,300 units, or a vacancy rate of 7.98 percent, which is much lower than the national average.
In addition, the Ministry of Finance released data showing that since a “hoarding tax” was introduced in 2015, the number of “hoarders” who own homes that they do not occupy themselves has risen every year, from 336,264 in 2015 to 502,265 this year.
In 2015, 69.59 percent of hoarders owned only one home that they did not occupy. This has risen every year since then, to 79.54 percent this year, an increase of 9.95 percentage points in seven years. However, the ratio of hoarders owning two or more homes that they do not occupy has decreased, from 30.41 percent in 2015 to 20.46 percent this year.
The number of “super hoarders” who own more than 10 homes has also dropped from 1,854 in 2015 to 1,703, this year. This is a new low point, indicating that multihome ownership has gradually decreased in recent years as a reflection of the impact of the hoarding tax and the housing justice policy.
The increase in the percentage of people owning one home that they do not occupy could be seen as a healthy trend, as people buy a house as a form of savings that do not depreciate like bank savings.
Vacant homes, including vacation homes, occasional residences, or homes not frequently occupied due to work or travel, as well as homes that have yet to be rented or sold, are under renovation or left vacant for other reasons, are not the same as the market definition of a vacant home. They are a reflection of the concept of “buying a home to save money,” based on the traditional view that owning land is a way to create wealth.
Given low deposit interest rates and inflation, some people still adhere to the idea that buying a home is a way to save, and to many it remains a major life goal. This explains why some homes do not enter the sale or rental markets, and these homes are commonly known as “ineffective vacant homes” (無效空屋).
Ineffective vacant homes should not be counted as housing inventory because they will not easily enter the market and boost supply in the short term, as the concept of investing in a home and becoming rich by holding on to it for a long time is deeply rooted in Taiwanese culture.
When Taiwanese consider buying property, timing or legal restrictions are not key factors in making a decision. Potential buyers are not necessarily concerned about the financial aspect, as much as the freedom and autonomy they will enjoy in living in that property.
If you rent a property, you cannot have it renovated as you please. The landlord can also put restrictions on your freedom to make the home your own, such as prohibiting you from putting nails in the wall to hang pictures.
In contrast, owning a property means you are no longer at the mercy of inflation or rent increases, and so you have a greater sense of security.
Many also believe that owning a house is an important criteria if you intend to get married, as it brings not only a sense of stability and security, but also conveys a certain social status.
The decline in the vacancy rate is a reflection of the realization of housing justice, and people’s ownership of one more non-owner-occupied home demonstrates people’s reasonable and healthy habit of “savings through home ownership.”
Chang Yao-jen is a former director of the Urban Development Office of Chiayi City and adjunct associate professor at Chinese Cultural University’s Department of Land Resources.
Translated by Perry Svensson and Paul Cooper
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