Sept. prop­erty prices fall in all ma­jor ur­ban ar­eas

The China Post - - LOCAL -

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.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.