Steep build­ing costs keep hous­ing prices high: fi­nance min­is­ter

The China Post - - TAIWAN BUSINESS -

Fi­nance Min­is­ter Chang Sheng­ford said that hous­ing prices are un­likely to drop 10-20 per­cent this year, as prospec­tive buy­ers are ex­pect­ing, be­cause con­struc­tion com­pa­nies and hous­ing agents are not will­ing to lower their prices.

Some builders have com­plained that high taxes are slow­ing down the hous­ing mar­ket and they are hop­ing that the gov­ern­ment would re­duce real es­tate taxes, but in the mean­time, they have no in­ten­tion of drop­ping their prices, he said.

Chang said he did not buy into the tax ar­gu­ment, but rather thinks that con­struc­tion com­pa­nies have earned more than enough in the past 10 years to sur­vive in the cur­rent slug­gish hous­ing mar­ket.

It is un­rea­son­able to ex­pect the gov­ern­ment to res­cue the hous­ing mar­ket by low­er­ing taxes, the min­is­ter said.

As a mat­ter of fact, hous­ing prices have dropped this year by an av­er­age 3-5 per­cent, but prospec­tive buy­ers have been ex­pect­ing a big­ger de­cline of 10-20 per­cent, he said.

Re­cently sur­veys by lo­cal think tank Tai­wan Hous­ing found that the out­look for the hous­ing mar­ket has been af­fected by stock mar­ket fluc­tu­a­tions and a com­bined house and land tax that will take ef­fect next Jan­uary.

De­spite those fac­tors, how­ever, more than 60 per­cent of prospec­tive buy­ers are will­ing to pur­chase real es­tate af­ter view­ing, but 50 per­cent of those buy­ers who put for­ward an of­fer ex­pect the sellers to re­duce the prop­erty price by no less than 20 per­cent, the polls found.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.