Taipei real es­tate prices nearly dou­ble over 20 years

The China Post - - TAIWAN BUSINESS - BY JOHN LIU

Prop­erty prices in Taipei City have al­most dou­bled and surged the most among Tai­wan’s six mu­nic­i­pal­i­ties in the past 20 years, ac­cord­ing to a real es­tate al­manac re­leased by Sinyi Re­alty Inc. ( ) yes­ter­day. The al­manac, com­piled by the Col­lege of Com­merce at Na­tional Chengchi Uni­ver­sity-Si­nai Re­search Cen­ter for Real Es­tate, shows that real es­tate in Taipei av­er­aged NT$229,000 per ping (3.30 square me­ters) in 1995, but the av­er­age price has shot to NT$679,000 in 2014.

It means that the price of a three­bed­room apart­ment — a popular choice for Tai­wan’s home buy­ers — has climbed to more than NT$20 mil­lion, sub­stan­tially higher than the NT$6-7 mil­lion price tag two decades ago.

While prop­erty prices in Taipei City soared 196.5 per­cent, prices in New Taipei City also surged 145.3 per­cent, from NT$150,000 per ping years back to NT$368,000 in 2014.

As for other ma­jor cities, prices in Taichung jumped 89 per­cent to NT$195,000 per ping, while Taoyuan rose 80 per­cent to NT$193,000.

Tainan and Kaoh­si­ung’s real es­tate prices grew about 49 per­cent and 47 per­cent, re­spec­tively, to NT$133,000 and NT$165,000 per ping.

Hous­ing Prices Less Likely to

Soar in Near Fu­ture: Ex­pert

In terms

of

the

real

es­tate mar­ket’s out­look, Sinyi manager Tseng Ching- der ( ) fore­cast a wave of home pur­chas­ing be­fore the end of the year as peo­ple try to evade higher tax pay­ments. Higher tax rates are to be im­posed af­ter the launch of the con­sol­i­dated hous­ing and land tax in 2016.

” The im­pact of con­sol­i­dated hous­ing and land tax will hit hard on short- term spec­u­la­tive in­vest­ment ac­tiv­i­ties. With a tax rate be­tween 35 and 45 per­cent, such in­vest­ments are likely to dis­ap­pear.” Tseng said, adding that hous­ing prices are not likely to see a sub­stan­tial in­crease in the near fu­ture.

A trans­for­ma­tion stage will fall on the real es­tate mar­ket over the next 10 years, Sinyi said. Change in the de­mo­graphic struc­ture, the trend of over­seas prop­erty pur­chase, the ar­rival of the dig­i­tal age and the rise of green en­ergy and en­vi­ron­men­tal­ism are all fac­tors that may po­ten­tially wield an im­pact on Tai­wan’s mar­ket, said the re­alty com­pany.

Smaller Homes Be­come More

Popular: Re­searcher

Be­sides ris­ing hous­ing prices, Su Chi- jung ( ) , a re­search manager at Sinyi Re­alty, also noted a new devel­op­ment over the years. An aging pop­u­la­tion, lower birth rates, and the spread of MRT sys­tems have fos­tered higher de­mand for two- bed­room apart­ments said.

Back in 1995, trad­ing of twobed­room or smaller apart­ments ac­counted for only 25 per­cent of all trans­ac­tions in Taipei and 19 per­cent in New Taipei City. To­day they make up 40 per­cent or more of all trans­ac­tions.

In Kaoh­si­ung and Taichung, the share of small apart­ment trad­ing was only in the sin­gle digit a while back, but it has risen to 20- 30 per­cent to­day.

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