Property transactions in 6 major cities fall 13% mom in July

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Taipei, Aug 6 (CNA) Residential and commercial property transactions in Taiwan’s six largest cities fell more than 13 percent month-on-month in July, with southern Tainan and Kaohsiung experiencing the sharpest declines, according to those compiled by these locals statistics governments.

Transactions of apartments, offices and shops in northern Taipei, New Taipei and Taoyuan, central Taichung and southern Tainan and Kaohsiung totaled 18,477 units in July, down 13.3 percent from the previous month Data. However, the July figure rose 5 percent from a year earlier.

In Tainan, housing transactions fell 18.2 percent month-on-month to 1,836 units, while residential and commercial property sales in Kaohsiung fell 20.2 percent from June to 2,680 units this month.

As for the other cities, which posted relatively milder month-on-month declines, home sales in Taipei, the most closely-watched real estate market in Taiwan, fell 7.3 percent in July to 2,273 units; Transactions in New Taipei, Taiwan’s most populous city, fell 12.9 percent to 4,697; Taoyuan sales fell 3.4 percent to 3,539 units; and transactions in Taichung fell 17.6 percent to 3,452 units.

In the first seven months of this year, housing transactions in the six major cities fell 1.4 percent from a year earlier to 149,982 units, the data showed.

Chen Chin-ping (陳金萍), research manager at Yung Ching Realty Group, said buying in Tainan has appeared strong since last year, as major tech giants ramped up investments in southern Taiwan’s science park and more and more tech talent rushed to buy houses in the city.

Due to the surge in house prices caused by this increased interest in buying, real estate investors and potential homebuyers in Tainan have become more cautious, leading to fewer transactions, Chen said.

Referring to Kaohsiung, Chen said housing transactions in the city fell to a 21-year low in July. The real estate market in Kaohsiung was boosted after Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, announced in November 2021 that it would build a wafer fab in the city.

Tseng Ching-der (曾敬德), research manager at Sinyi Realty Inc., said slower real estate markets in the six cities in July also reflected subdued sentiment due to an ongoing domestic COVID-19 outbreak after daily cases peaked at 10,000 had exceeded April for the first time since the pandemic began, and the impact appeared more severe than in June, when home sales in the six cities fell 6.7 percent from May.

Tseng said a move by the local central bank to tighten monetary policy and volatility in the stock market are expected to continue to put pressure on the real estate market.

Despite the slowdown in transactions, H&B Business Group’s Jessica Hsu (徐佳馨) said it’s hard to see prices for newly built homes drop as building materials have become more expensive along with higher labor costs.

(By Lai Yen-hsi and Frances Huang)

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