New housing projects in Taipei forecast to hit low
The number of new housing projects in Taipei City is expected to fall in 2015 to the lowest in 19 years due to a series of government’s measures to rein in home prices, a local property market magazine said Thursday.
According to My Housing magazine, there have been only 100 new housing projects in Taipei so far this year and the number is unlikely to exceed 160 for the whole year.
That would be the lowest annual number since 1996, when new housing projects in the capital city totaled 152, the magazine said.
It said investor sentiment in the property market has been eroded by a tax on speculators, while transactions have shrunk as a result of the local central bank’s selective credit control on mortgages for luxury properties and for new home construction.
Property developers, therefore, appear reluctant to start new projects in Taipei for fear of weakening demand, the magazine said.
It said the number of new housing projects per year in Taipei fell below 200 in 2011 and has since been hovering at around 180.
As result, the total value of new residential and commercial property in the city has remained at about NT$200 billion a year since 2011, the magazine said.
In the city’s Xinyi District, where there are a large number of luxury homes and upscale commercial buildings, only one new project has been launched so far this year, the magazine said.
Ho Shih-wei, a manager in the magazine’s research department, said the market has also been affected by a shortage of land for new housing construction in Taipei.
In addition, the slow pace of urban renewal in both the public and private sectors has contributed to the decline in the number of housing projects in Taipei, he said. Many property developers have moved their funds into other cities in Taiwan or overseas because of the market slowdown in Taipei, Ho said.
is that competition in the Taipei market has shrunk as a result, he said.
Yuanta Premiers Residence ( ), a luxury residence located in the Zhongzheng District of Taipei City, is shown in this photo provided by Taiwan Reality Co. ( ), yesterday. Real estate agents found that the first case of foreclosure at the Yuanta Premiers Residence will occur in September, with a 180-ping residence on the 18th floor to be sold at NT$262.7 million. Agents believe there are high chances of a failed bid.