Real estate trade grows 60 percent in March: realty firm
Property trading in the first 29 days of March grew 60 percent month-on-month but dropped 15 percent compared with a year ago, according to data released by Sinyi Realty ( ).
Real estate buying activity recovered albeit at a rather weak momentum, said the brokerage company.
The current capital market, interest rate and economic development state favor the property market, said Sinyi Realty research manager Tseng Chin-der.
However, policies introduced by the government have had an adverse impact on the housing market over the past year. As a result, there is no longer a prevalent expectation of rising prices in the nation.
With substantially more self-use buyers moving in, and speculative investors retreating, the housing market is now in a state of “slow recovery,” Tseng said.
The average trading price slipped a little in March. At NT$658,000 per ping (3.3057 square meters) in Taipei, the price is lower than February’s NT$667,000 per ping, and last March’s NT$675,000.
In New Taipei City, the average trading price of NT$361,000 per ping is also lower than February’s NT$ 366,000 and last March’s NT$380,000.
As for Taichung and Kaohsiung, the average trading prices were also lower than those in February, but slightly higher than those of last year.
Properties with Most Trading
Sinyi Realty said trading picked up the most in Taipei City, with housing transactions almost doubling in March.
In Taipei City, there was a spike in sales for properties priced between NT$10 million and NT$20 million, as well as those priced at NT$30 million or more.
In New Taipei City, sales were primarily made on properties priced between NT$7 million and NT$15 million. They accounted for nearly 60 percent of all transactions.
While signs of recovery were more obvious in Taipei, Tseng said there is a higher level of stability in Taoyuan, Hsinchu and Tainan’s housing markets. A stable economy and job market in Taoyuan and Hsinchu buoy their realty markets, he said.
Housing Market to Pick up:
As the consolidated land and housing tax may have less adverse impact on the market, Tseng expects a level housing market in the future.
Judging from the ongoing buy- ing momentum, Tseng predicts property trade to edge up gradually. However, buyers today are more selective and more cautious about prices, he said.
As the government wavered on the consolidated land and housing tax, property trading plummeted while prices dipped in the past six months. The number of transactions in Taipei City and New Taipei City for 2014 dropped to the lowest point in 23 years.
The consolidated land and housing tax as well as an increased housing tax have slowed purchase activities, said Andy Huang, a research manager at Yung-ching Realty ( ).