Sept. property prices fall in all major urban areas
Property prices in all six special municipalities have been sliding, with Tainan showing the biggest fall over the past two months, according to housing market analysts.
The southern city of Tainan started registering significant declines in property prices in August, and average transaction prices in September reached NT$110,000 per ping (just over 3 square meters), down 15.3 percent compared to the peak levels recorded in the third quarter of 2014, according to analysts from Yung-Ching Realty.
The property market has been sluggish since last year when the government introduced changes to curb soaring housing prices, particularly in the Greater Taipei area.
The market first saw transaction volumes shrink and prices in Taipei and New Taipei also started showing significant declines in the second quarter of 2015 as the local economy slowed.
Now the downward pricing trend has also spread to other municipalities, according to Yung-Ching’s latest research report on Taiwan’s property market in the third quarter.
In Taichung, the average transaction price for the fourth quarter of 2014 was NT$185,000 per ping, the highest in recent years, Yung-Ching said, adding the average for the first two quarters of this year still stayed at around NT$180,000 per ping.
But the Taichung average for September dropped sharply to only NT$165,000, a fall of more than 10 percent from last year’s high.
In Kaoshiung, the average transaction price for September decreased by more than 9 percent to NT$139,000 per ping, compared to the highest level of NT$153,000 recorded last year.
Taoyuan saw a 12.8- percent decline to NT$149,000 per ping in average transaction price in September, down from last year’s highest at NT$171,000.
New Taipei’s September average was NT$312,000 per ping, decreasing by 9.3 percent from last year’s highest level of NT$344,000.
Taipei, where property
pric- ing is the highest of all regions in Taiwan, registered a 11.2-percent fall in September average, sliding to NT$608,000 per ping from last year’s peak at NT$685,000.
Some of the popular areas in New Taipei, such as Banqiao, Yonghe, Zhonghe, Xindian and Xinzhuang, have already seen pricing remaining under NT$400,000 for four months in row, with September levels reaching as low as NT$370,000 — the lowest in two years, YungChing said.
The analysts said pricing in such popular New Taipei areas is unlikely to rebound above the NT$400,000 level in the short term.
The property market faces a downward cycle where prices have to come down in order to stimulate demand, the analysts. But the lower prices are unlikely to significantly boost transactions, they added.