Prices of residential and commercial property in Taipei, the most closely watched market in Taiwan, for 2016 fell about 11 percent from 2014, reflecting the government's efforts in curbing skyrocketing home prices in the country, according to Sinyi Realty Inc. (????).
Citing statistics, Sinyi Realty, one of the leading property sales agencies in Taiwan, said that the average housing price in Taipei, the capital city of Taiwan, fell about NT$74,000 (US$2,327) per ping (one ping equals 3.3 square meters) so far in 2016 from 2014, when home prices in the city hit a record high.
Sinyi Realty said that the average price of homes, shops and offices in Taipei, stood at NT$606,000 per ping, down from NT$680,000 per ping seen in 2014. The 2016 figure was also the lowest since 2013, the realty agency said.
Tseng Ching-der (???), a research manager with Sinyi Realty Inc. (????), said that buyers in Taipei can take advantage of the fall in home prices and buy a bigger home. For the price of NT$20 million, buyers can now buy a bigger home, with an additional space of about 3.5 pings for an extra small-sized bedroom, he said.
However, some analysts believe the market is still overpriced and could be headed for a much bigger drop in prices in the next few years due to the declining birth rate in Taiwan, and the relatively small number of immigrants moving here.
Tseng said that Taipei was not the only city among Taiwan's six major cities which has witnessed home prices falling. He added that New Taipei and Taoyuan, both in northern Taiwan, also reported a fall, while the property markets in Taichung, central Taiwan, and Tainan and Kaohsiung, in southern Taiwan, appeared resilient.
According to Sinyi Reality, residential and commercial property prices in New Taipei, the most populous city in Taiwan so far in 2016 stood at NT$340,000 per ping on average, down about 8 percent from 2014.
Meanwhile, the average property price in Taoyuan for 2016 dropped 7 percent from 2014 to about NT$179,000 per ping, the realty agency said.
In Taichung, prices of homes, shops and commercial property stood at NT$191,000 per ping this year, down about 2 percent from 2014, and the average price in Kaohsiung also fell 2 percent to NT$163,000 per ping, Sinyi Realty said.
In Tainan, the average price of residential and commercial property for 2016 fell only 1 percent from two years earlier to NT$134,000 per ping, Sinyi Realty added.
Tseng said that the data showed that the property markets outside the greater Taipei area remained relatively stable without too much volatility in the past two years due to their lower home prices.
Compared with Taipei, home prices outside the greater Taipei area are more affordable, but many wage earners in the country still cannot afford to buy a home because of the low salaries here and prices hiked up by years of speculation.
Source: Focus Taiwan News Channel