Dxpat.com

Housing website for Taiwan

www.michaelturton.com/Taiwan/housing.html

A typical older suburban neighborhood. Finding a House For singles, living in Taiwan is child’s play. When you arrive, stay at a hostel for a month or two until you …

www.globalpropertyguide.com

A look at real estate investment in Taiwan from the perspective of property income, taxes and Taiwanese investment prospects.

www.globalpropertyguide.com

A glance at changes in property, house and real estate prices in Taiwan.

www.bbc.co.uk/news/business-20779609

Owning a home is the dream of many in Taiwan, but that dream is becoming unattainable, as speculative buying has driven prices to …

taipei.craigslist.com.tw

taiwan apts/housing for rent classifieds – craigslist. … Dist, Near World trade center. – TWD110000 / 3br – 2492ft² – (Xinyi Dist., Taipei,[Master Real Estate]) pic …

After three years of unbroken house price rises, Taiwan’s housing market is now slowing sharply, as economic conditions deteriorate.

In Greater Taipei, the Lutheran home price index posted a meager growth of 0.96% during the year ending in June 2012, according to Sinyi Real Estate Planning and Research. However, when adjusted for inflation, the index actually dropped 0.84% over the same period. Over the latest quarter, house prices in Greater Taipei dropped 1.1% (-3.12% inflation-adjusted) in June 2012.

Nationally, the housing price index rose by 4.39% (2.57% inflation-adjusted) y-o-y in June 2012, according to Taiwan Realty Co. House prices in the country increased by 1.71% during the latest quarter.

Taipei, Taiwan’s capital, has the most expensive housing in the country, with an average price of TW$518,600 (US$17,611) per ping (a customary and traditional unit of measurement in Taiwan which is equivalent to 3.306 square meters).

Demand waning. In the first half of 2012, property transactions in Taiwan fell 20.88% from a year earlier to 158,673 units, according to the Ministry of the Interior, mainly due to the luxury tax introduced in June 2011 to curb speculation.

The number of unoccupied houses is rising. In the first half of 2012, the total value of new houses launched in Northern Taiwan was TWD432.1 billion (US$14.7 billion), of which only about 40% were sold, while the remaining 60% (equivalent to about 12,822 units) remain unsold, and available in the market.

In 2011, the total number of unoccupied houses reached about 1.56 million units, according to Alpha Cho, a land valuation expert.

Residential property sales are projected to fall by another 10% to15% in the second half of the year, according to local real estate market experts.

Taiwan’s 2012 economic growth projected was cut eight times to 1.66%, amid deteriorating global economic prospects. In the second quarter of 2012, the economy contracted by 0.2% from a year earlier, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

Taipei now vies with Monaco for having the lowest yields in the world. With buying prices per square metre averaging a steller US$7,200 to US$9,200, depending on size, and rents still affordable (where else can you rent a US$1.8 million home for just US$2,200 per month?), Taipei is not a happy place for landlords.

The owner of an apartment in Taipei will be lucky to realize 2% yields, except on the very smallest apartments. Given that the Global Property Guide’s figures are for gross rental yields, i.e., do not make any allowance for vacant periods, for legal costs, administration costs, cleaning and repairs, rental taxes, property taxes, and other taxes, it is safe to say that landlords in Taiwan earn nothing on their apartments.

We believe apartments in Taipei are overvalued – and will fall in price. But we should warn readers that we can get it wrong!

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