Housing prices to slide through 2015 due to taxes, election: real estate agents
Major Taiwan realtors yesterday predicted that housing prices will slide in the second half of the year due to the new consolidated housing and land tax and general elections slated for January.
H&B Realty Co. ( ) said the new consolidated housing and land tax is likely to raise the tax burden on owners of multiple properties and encourage banks to become more conservative with loans.
These variables, along with the upcoming general elections, should ensure that property prices decline through to the end of the year, said Jessica Hsu ( ), head researcher at H&B Realty Co.
that lower property prices may correlate to a higher number of units sold in the second half of the year, compared to the first.
There may be an improvement in transaction volume in the second half of the year, though overall volume for the year should “still be comparatively low,” Hsu said.
Chen Bing- chen ( ) , an analyst at Taiwan Realty (
), said that his firm does not see transaction volume improving but instead taking a worse hit in the fourth quarter.
“The effect of the general election will become more pronounced in this year’s fourth quarter — even if the public better understood the new property tax and was more willing to enter the market,” Chen said.
Andy Huang (
), research manager of Yung-Ching Realty Group ( ), predicted that prices per unit may drop between 5 to 10 percentage points within the next three years.
Taiwan’s disappointing GDP growth in the second quarter has weakened investor confidence and will cause homebuyers to become more cautious. There is little opportunity for housing prices to climb over the next two to three years, according to Yung-Ching Realty Group.
“At present, confidence is hurting and the overall economic environment is relatively challenging,” Huang said.
“While the interest rate and tax burden (for homebuyers) have not increased, our estimate is that property prices will decline overall by 5 to 10 percentage points.”