Drops in property transactions observed across real estate brokers this month.
Taiwan's Housing Market Experiences Slump in Transactions
Taipei, Taiwan - Major housing brokers in Taiwan reported a decline in transactions for the month, despite a modest pickup from the previous one, due to loan restrictions, economic uncertainties, and a high base.
Evertrust Rehouse Co, the country's largest property broker by number of offices, observed a 41 percent drop in deals, affecting all major regions. Transactions fell 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, according to internal data provided by the broker.
The poor performance was primarily attributed to economic headwinds, the central bank's credit controls, and a high base by Evertrust deputy research head, Chen Chin-ping. Despite the recent 90-day trade truce between the US and China, buyers remain cautious, with modest recovery in buyer confidence. lingering tariff uncertainties and difficult mortgage loans have hindered a significant turnaround.
Chen also highlighted Taiwan's vulnerability to global trade fluctuations, noting that a slowdown in key trading partners could impact economic growth, job stability, and household income, which are vital factors for buyers.
Similarly, H&B Realty Co, Taiwan's largest broker by number of franchises, reported only half the volume of transactions recorded in May last year, despite having more working days this year. Homeowners, particularly those selling older or less desirable properties, have seen lower asking prices to facilitate deals. However, the situation is not expected to improve in the short term.
Chinatrust Real Estate Co share a similarly bleak outlook, as transactions at their network declined 30.8 percent this month compared to the previous year. The downtrend was consistent across the six major municipalities, with deals slumping in Taipei, New Taipei City, Taoyuan, Taichung, Tainan, and Kaohsiung.
Chinatrust recommended potential buyers to prioritize self-occupied homes and assess their financial standing carefully, as the market is expected to consolidate for some time. The broker cautioned against rushed decisions or blindly pursuing high prices.
While these factors contribute to the cooling of Taiwan's housing market, competition from pre-sale home deliveries and market saturation have also played a role, according to industry experts. The market might be experiencing a natural correction to more sustainable levels. The ongoing global economic challenges also highlight Taiwan's susceptibility to broader economic conditions, which can impact the housing market.
Investors are advised to exercise caution when considering investing in Taiwan's real-estate market, as the housing market experiences a slump in transactions due to loan restrictions, economic uncertainties, and a high base, according to major housing brokers. Despite the recent 90-day trade truce between the US and China, buyers remain cautious, with lingering tariff uncertainties and difficult mortgage loans hindering a significant turnaround. Finance experts predict that the market is expected to consolidate for some time, and potential buyers should prioritize self-occupied homes and carefully assess their financial standing. Furthermore, competition from pre-sale home deliveries and market saturation have also contributed to the slowdown in the housing-market transactions.
