Real es­tate trade grows 60 per­cent in March: re­alty firm

The China Post - - TAIWAN BUSINESS - BY JOHN LIU

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:

Re­al­tors

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 ( ).

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