Taipei real estate prices nearly double over 20 years
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
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
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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